Prelim_2_Study_Guide - PRELIM 2 Review COST BENEFIT...

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PRELIM 2 Review COST BENEFIT ANALYSIS Use Value: The direct and indirect value that people place on the use of a good or service. – Direct use: the value that on obtains by current use of a natural resource such as visiting a national park. - Indirect use - two forms: -incorporates ecologists’concepts of ecological function (e.g., wetlands provide flood control benefits, forests provide carbon dioxide sequestration) which provide real economic benefits. -Personal enjoyment without direct contact. Non-Use Values: Unrelated to current personal use. – Altruistic value (vicarious consumption): the value that households place on the welfare of others. – Option value: willingness to pay to preserve the option that the resource will be available for future use. – Bequest value (preservation): the value that the present generation places on the availability of a resource for future generations. – Pure Existence value (intrinsic, passive use, inherent stewardship): the value
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Prelim_2_Study_Guide - PRELIM 2 Review COST BENEFIT...

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