Title: Defining existence values of environmental resources

Authors: Chung-Chian Chen

Addresses: Graduate Institute of Environmental Management, Nan Hua University, 32, Chung Keng Li, Dalin, Chiayi 622, Taiwan

Abstract: Traditionally, the Contingent Valuation Method (CVM) is one of the most accepted techniques to assess non-use value of environmental goods, but it is being debated due to its validity and reliability are being quest. In general, it reveals an individual|s willingness to pay for improvements of environmental goods through a virtual market but neglects the irreversibility of environmental damage. In this paper, we present a framework by incorporating irreversibility of environmental degradation for the assessment of non-use value of environmental resources. The results of our analysis show that the existence value goes up but generation debt falls when humans| demand elasticity is low. In contrast, if the irreversibility of environmental damage arising from human behaviour such as extraction of resources, development of a site, etc., increases then the existence value goes up and the generation debt is enlarged.

Keywords: contingent; existence value; restoration cost; valuation method; willingness to pay; environmental resources.

DOI: 10.1504/IJETM.2003.004123

International Journal of Environmental Technology and Management, 2003 Vol.3 No.3/4, pp.390 - 402

Published online: 10 May 2004 *

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