the potentials and limits of economic quantifications

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1、Thepotentialsandlimitsofeconomicquantifications CarolinBarzcbarz@ecology.uni-kiel.de  Economicvaluationinvolvestheassignmentofmoneyvaluestostocksofenvironmentalassetsandtochangesinenvironmentalservicesandfunctions(Pearce,Seccombe-Hett,2000).Itprovidesmonetaryindicationofthevalueofecosystemgoodsan

2、dservices.Theeconomicvalueofanecosystemgoodorservicerelatestoitsutilityandthecontributionitmakestohumanwelfare.Thingshavevalueinsofarastheycontributetowardsmeetingtheneedsandsatisfyingpleasureofindividuals.Economicvaluationisaboutindividualpreferencesandchoices.Peopleexpresstheirpreferencesthroug

3、hthechoicesandtrade-offstheymakeundercertainconstraintssuchasincomeandtime.Theeconomicvalueismeasuredbythemostsomeoneiswillingtogiveupinothergoodsandservicesinordertoobtainagood,serviceorparticularstateoftheworld.Aspreferenceschangeovertimeundertheinfluenceofeducation,advertising,culturalchangesa

4、ndchangesintheabundanceofgoodsandservices,choicesthatindividualsmakewillchangeaccordingly(Farberetal.,2002).Valuationschemesmakeassumptionsaboutthestateofthesystemanditsbehaviourwhendisturbed.Valuingenvironmentalchangesisbasedonpeople’spreferencesforchangesinthestateoftheirenvironment,includingsm

5、allchangesintheavailabilityofgoodsandservicesorlargerchangesincludingthecompleteabsenceorpresenceofsomegoodsandservices.Economicvaluationdeterminesthe‘difference’somethingmakestowell-being.Environmentalgainsandlossesaredefinedintermsofincrementsordecrementsofhumanwell-being.Theconceptallowsevalua

6、tingwell-definedchangestoecosystemsandenvironmentalimpactstobecompared(Bockstaeletal.,2000).Wheremarketsforenvironmentalgoodsareinplaceeconomicvaluationiswidelyaccepted,howevertheconcepthasalsobeenextendedtoecosystemgoodsandserviceswhichhavenoobviousmarketornomarketatallsincetheyaremainlynotpriva

7、tebutpublicgoodsandthereforedonotqualifyformarkettrading.Astheyarepublicgoodsnoonepersonhastheincentivetopaytomaintainthemandastheyhavenoclearlydefinedpropertyrightstheresourcesareoftenoverused.Non-marketvaluationmetho