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INTRODUCTIONA change in the environment may alter economic activities and so change the monetary revenues and costs of the activities. The change in these revenues and costs can sometimes be used to value the change in the environment. The range of techniques which apply this general approach is reviewed in the present chapter The techniques value a benefit as an increase in revenue or as a decrease in monetary outlay. Similarly, they value a cost as an increase in monetary outlay or as a reduction in revenue. This chapter describes each technique in terms of the problems it can help resolve, the values it can estimate, its underlying concept, practical applications, and its strengths and weaknesses. Table 3.1: The range of market value approaches
Effect of change Valuation technique Change in availability, quality or quantity of an Change in productivity output Change in availability, quality or quantity of an Change in income input Individuals, groups or society replace an entire Replacement cost asset, part of an asset, or quality of an asset Individuals, groups or society spend money to Preventative expenditure defend their environment Individuals, groups or society relocate an Relocation cost activity |
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©İsmail Güneş |