Economic Environmental Valuation
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Date
2007
Authors
Wawire, N. H. W.
Thuo, A.D.M.
Journal Title
Journal ISSN
Volume Title
Publisher
School of Environmental Studies and Human Sciences, Kenyatta University
Abstract
This chapter attempts to place a monetary value on environmental resources
describing various methods of valuing an environmental resource with respect
to costs and benefits. This is because externalities do arise from production and
consumption of goods and services that are not accounted for in a competitive
market due to market failure (Stiglitz, 1988; Hyman, 1996 and Kolstad, 2000).
Marketsfail if prices do not communicate the society's needs and constraints
accurately, thereby understating the services provided by an environmental
resource. In the worst scenario, prices do not exist to send a signal about the value
ofa resource within the environment.
Description
Book Chapter