By Ian J. Bateman, Andrew A. Lovett, Julii S. Brainard
The complicated real-world interactions among the economic climate and the surroundings shape either the point of interest of and major barrier to utilized study in the box of environmental economics. in spite of the fact that, geographical details platforms (GIS) permit economists to take on such complexity head on by way of at once incorporating diversified datasets into utilized learn instead of resorting to simplifying and infrequently unrealistic assumptions. This leading edge booklet applies GIS ideas to spatial cost-benefit research of a posh and topical land use switch problem--the conversion of agricultural land to multipurpose woodland--looking intimately at matters comparable to chance charges, trees yield, sport, carbon garage, etc.,
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Extra info for Applied Environmental Economics: A GIS Approach to Cost-Benefit Analysis
We therefore reject the use of pricing techniques and turn to consider the more theoretically rigorous valuation methods. The valuation methods all ultimately rely upon individual preferences. However, within this genre two distinct categories of approach can be deﬁned: methods based upon preferences which are revealed through purchases by individuals of marketpriced allied goods; and methods which rely upon expressed preferences elicited through questionnaire surveys. Both of these variants provide measures of value which are valid according to economic theory.
This latter prescription has important consequences for equity, as Rawls argues that under such a system the optimal allocation of resources is one that is made behind a ‘veil of ignorance’ as to their intraand intergenerational distribution. 9 Such a contrast is perhaps most clearly demonstrated in the recent literature regarding sustainability. Turner and Pearce (1993) identify four alternative positions ranging from ‘very weak’ to ‘very strong’ sustainability. Each deﬁnition moves further from a conventional utilitarian towards a Rawlsian position on equity, steadily imposing more constraints upon resource use (most notably, natural capital).
The valuation process and its inﬂuences Consideration of the process through which respondents derive valuation responses to CV questions can be traced back to the beliefs–attitudes–behaviour models proposed by Fishbein and Ajzen (1975) and Ajzen and Fishbein (1977). Recent research has suggested that this process may be highly complex, reaching beyond the somewhat simple models of self-interested rationality underpinning much economic theory. 13 13 This section draws upon a variety of sources including Fishbein and Ajzen (1975); Hoehn and Randall (1987); Brown and Slovic (1988); Mitchell and Carson (1989); Dake (1991); Harris and Brown (1992); Bateman and Turner (1993); Schkade and Payne (1994); Marris et al.