Table of Contents

Environmental Valuation in Developed Countries

Environmental Valuation in Developed Countries

Case Studies

Edited by David Pearce

This is the second of two volumes of case studies that illustrate how environmental economists place values on environmental assets and on the flows of goods and services generated by those assets. This important book assembles studies that discuss broad areas of application of economic valuation – from amenity and pollution through to water and health risks, from forestry to green urban space. In this, his last book, the late David Pearce brought together leading European experts, contributors to some two dozen case studies exploring the frontiers of economic valuation of natural resources and environmental amenity in the developed world.

Chapter 4: Valuing Changes in Farmland Biodiversity Using Stated Preference Techniques

Mike Christie, Nick Hanley, John Warren, Kevin Murphy and Robert Wright

Subjects: economics and finance, environmental economics, valuation, environment, environmental economics, valuation

Extract

Mike Christie, Nick Hanley, John Warren, Tony Hyde, Kevin Murphy and Robert Wright INTRODUCTION The aims of this chapter are to identify problems surrounding the economic valuation of ‘biodiversity’, and then to present results from a recent stated preference study on changes in biodiversity on UK farmland, which attempts to get around one major problem, namely the information deficit that typifies the knowledge level of most members of the general public regarding biodiversity. We also provide a first choice experiment estimation of the attributes of biodiversity, an approach that may prove useful in developing policy on biodiversity protection and enhancement; obtain contingent valuation estimates for different policies, which would increase biodiversity on farmland; and compare values obtained using standard survey procedures with those obtained using the ‘valuation workshop’ technique (Macmillan et al., 2003). Finally, we test for benefits transfer in both values and valuation functions across geographic areas. In what follows, the first section discusses motivations for estimating biodiversity values and problems encountered, whilst the second presents a brief review of the literature. Our study design is explained in the third section, with results presented in the fourth. A discussion concludes the chapter. WHY DO WE WANT TO ESTIMATE THE ECONOMIC VALUE OF BIODIVERSITY? Society needs to make difficult decisions regarding its use of biological resources, for example in terms of habitat conservation, or changing how we 50 Pearce 01 chap01 50 20/10/06 11:44:20 Valuing changes in farmland biodiversity 51 manage farmland through agri-environmental...

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