Contingency valuation |
A technique for establishing a monetary value for a non-traded
environmental "good" or service, e.g., a scenic attraction, by asking
respondents to the sum they would be prepared to pay. While successes have been
claimed for the method, recent re-assessments suggest it should be used with
caution and reinforced with empirical research. |
Deposit refund systems |
A system where a surcharge is levied on the price of products
leading to resource depletion or pollution which is then refunded if the product
(or its residuals) are re-cycled. |
Hedonic pricing |
A valuation technique to determine the value of non-traded
environmental 'good' which uses statistical analyses to isolate the
environmental values which contribute to differences in product prices,
typically price differences in real estate prices. The technique has limited
application in dealing with resource valuations in, say, the fisheries sector
but is well suited to other aspects of the valuation of coastal
resources. |
Non-compliance fees |
"Additional" prices to be paid for not complying with
environmental requirements to meet the social costs arising from environmental
damages. |
Performance bonds |
Similar to a deposit refund system where a bond is placed
equal to the estimated social costs of possible environmental damage as a surety
for complying with environmental requirements and is forfeit if these
requirements are not met. |
Tradable permits |
A system where rights to discharge pollution or exploit
resources can be exchanged through either a free or a controlled "permit"
market. Examples include Individual Transferable Quotas in fisheries, tradable
depletion rights to mineral concessions and marketable discharge permits for
water-borne effluents. |