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xid-7851583_2 - Tuesday Oct 18 Problem sets 3 4 1 From last...

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uesday, Oct 18 1 . From last week: Direct use value - value derived from explicit and intended use of a beach, park, fishery, forest, water source, etc. Indirect (also passive or nonuse, value) - value not derived from the direct use of a resource - Option - value derived from preservation of a resource for possible later use Bequest - value of having a resource to leave to future generations Altruistic - value due to provision of a resource to others Ecological services - often measured in some natural unit, such as the equivalent of energy (in joules, for example) embodies or available in a natural object or process - can be used to measure the natural services such as water-filtering or aquifer recharge from wetlands, for example. 2. V alue of nonmarket goods is derived from consumer surplus; and can be measured by …. Role of property rights Willingness to pay (WTP) or willingness to accept (WTA) as measures of consumer surplus WTP - 'how much are you willing to pay for a particular good, service, or amenity"? - suggests that you do not yet 'own' or have property rights to environmental improvements, and are willing to pay for them - WTA - "how much in compensation would you accept to have less of a particular good, service, or amenity"? - suggests that your property is being damaged, and you have the right to be compensated. How to value nonmarket goods?
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xid-7851583_2 - Tuesday Oct 18 Problem sets 3 4 1 From last...

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