Valuation tool - production function approach, Public Economics

Assignment Help:

Valuation Tool - Production Function Approach

The production function approach is applied to estimate the indirect use value of the environment. It consists of two steps: first, establish a relationship between the environmental input/service and the output, and second, estimate the monetary value of the environmental function.

For example, soil erosion upstream causes siltation in canals, which reduces the flow of irrigation water. As a result of decrease in water supply, there is a decline in crop production downstream. In order to measure the cost of soil erosion we estimate the crop loss due to siltation and find out its value m money terms, which can be considered as an estimate of the cost of soil erosion.

 


Related Discussions:- Valuation tool - production function approach

Fiscal policy, What are objectives of fiscal policy

What are objectives of fiscal policy

Enactment of social norms into laws, Suppose there is certain social norm. ...

Suppose there is certain social norm. Its enactment into statutory law lowers people's private cost of its enforcement because it creates the possibility that violation of norm wi

Private & public goods, what do you understand by private & public goods. D...

what do you understand by private & public goods. Distinguish between private and public goods.

Flaws in conventional system - inconsistent treatment, Flaws in Convention...

Flaws in Conventional System -  Inconsistent Treatment Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftIntern

What is meaning of market economy, The meaning of a market economy is in wh...

The meaning of a market economy is in which the decision and production are prepared. The consumption of goods services are based on voluntary swap in markets.

Open access resources and common property resources, Normal 0 f...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Case for the market - pigovian analysis, Case for the Market   With  th...

Case for the Market   With  the objective of maximising total value of output  focused on  observing real  factors of production, through the  logical  'tool  of marginal produ

Business environment, There is no doubt that the environment surrounding bu...

There is no doubt that the environment surrounding business organizations play an important role in influencing the decisions of those organizations and their strategic plans. That

Pubic Goverance, The fragmentation and redundancies of the U.S federal syst...

The fragmentation and redundancies of the U.S federal system are expensive in terms of coordination and personnel costs. Would you favor or oppose greater consolidation? Why or why

Externality tax, Normal 0 false false false EN-IN X-N...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd