Valuation tool - production function approach, Public Economics

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.

 

Posted Date: 12/18/2012 5:19:54 AM | Location : United States







Related Discussions:- Valuation tool - production function approach, Assignment Help, Ask Question on Valuation tool - production function approach, Get Answer, Expert's Help, Valuation tool - production function approach Discussions

Write discussion on Valuation tool - production function approach
Your posts are moderated
Related Questions
The coordination problem relates us to not only the levels of activities like research and developments (R&D) and investments but also to the behaviour of institutions that charact

When Neff says that "the very essence of public relations is grounded in communication" (2010 p.373) she goes on to point to two features of communication that should aid us in ana

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

need assignment on supply and money

Health Economics - derivation of the contract curve: 01. Consider the Edgeworth box with the production of consumption goods B and health- investment goods I. (a) Briefly expl



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

describe and illustrate the lm-schedule

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