Valuing Complex Natural Resource Systems

Valuing Complex Natural Resource Systems

The Case of the Lagoon of Venice

The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development

Edited by Anna Alberini, Paolo Rosato and Margherita Turvani

In complex natural resource systems, modifications or disruptions tend to affect many and diverse components of the ecological system, settlements and groups of people. This book uses the Lagoon of Venice – a unique natural resource, wildlife habitat, centre of cultural heritage and recreational site – as an example of one such system that has been heavily affected by human activities, including the harvesting of natural resources and industrial production. The contributors explore the Lagoon’s potential for regeneration, examining public policies currently under consideration. The aim of these policies is to restore island coastlines and marshes, fish stocks, habitat and environmental quality, defend morphology and landscape through the strict control of fishing practices, and to protect the islands from high tides.

Chapter 5: Evaluation of Urban Improvement on the Islands of the Venice Lagoon: A Spatially-Distributed Hedonic–Hierarchical Approach

Paolo Rosato, Carlo Giupponi, Margherita Breil and Anita Fassio

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


Paolo Rosato, Carlo Giupponi, Margaretha Breil and Anita Fassio 5.1 INTRODUCTION The economic evaluation of the environmental and urban improvement is a topical subject and has seen an impressive number of methodological and operational contributions in the last decades. In this chapter, we use methods that estimate the monetary value of the utility produced by public interventions using changes in the market value of private goods, especially residential properties. Dwellings are complex goods whose value depends on many factors, including the quality of the environment and services in the area. Immobility renders the value of housing extremely sensitive to externalities (Curto, 1993; Rosato and Stellin, 2000), so by analysing the factors that influence value it is possible to identify and quantify the social appreciation for the protection of public goods and services (Garrod and Willis, 1992; Scarpa, 1995; Chattopadhyay, 1999). Changes in property values – surveyed or estimated by a simulation of the property market – thus become an indicator for estimating the value of an urban improvement. The model developed in this chapter is the result of a collaboration between scientists in different disciplines and integrating two different approaches: a simplified procedure developed for the economic valuation of environmental improvement (Rosato et al., 2002) and an ecological evaluation model in a Geographical Information System (GIS) environment developed to analyse the relations between land use and biodiversity (Giupponi and Coletto, 2003). These are, clearly, very different contexts, which however present good synergies, the former in providing tools for economic analysis and valuation,...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information