30
R.K. Turner· B.T. Bower
Table 1.3. Coastal zone impacts and valuation methods
Valuation methods
Market orientated benefit valuation
Benefit valuation using actual market prices of productive goods and services based on changes in value
of output, or loss of eamings. Examples include loss of fisheries output due to pollution, or value of productive services or recreational benefits loss, through increased illness caused by coastal waters pollution.
Surrogate markets benefit valuation
Environmental surrogates may include marketed goods, property values, other land values, travel
costs of recreation, wage differentials, compensation payments. Examples of such proxies are
entrance fees to national parks as a proxy for value of visits to protected areas, changes in commercial
property values as a result of water pollution, or compensation for damage to fisheries.
Cost valuation using actual market prices of environmental protection inputs
Preventive expenditures, replacement costs, shadow projects, cost-effectiveness analysis. For example
the ~ost of environmental safeguards in project design, cost of replacing resource damage by pollution
or conversion, cost of supplying alternative recreational facilities destroyed by development activities,
or cost of altemative means of sewage sludge disposal in marine waters can be used as cost indicators.
Survey orientated (hypothetical valuation)
Contingent valuation or contingent ranking questionnaire-based surveys of individuals to elicit
willingness-to-pay or to-be-compensated valuations.
Effects categories
Valuation method options
Productivity
E.g. Fisheries, agriculture, tourism, water
resources, industrial production, marine
transport, storm buffering and coastal
protection.
Health
Amenity
Coastal ecosytems, wetlands, dunes,
beaches, etc., and some landscapes,
including cultural assets and structures.
Existence Values
Ecosystems; cultural assets.
Market valuation via prices or surrogates;
Preventive expenditure;
Replacement cost/shadow projects/cost-effectiveness
analysis;
Defensive expenditure.
Human capital or cost of illness;
Contingent valuation;
Preventive expenditure (avertive behaviour);
Defensive expenditure.
Contingent valuation/ranking;
Travel cost;
Hedonic property "value" method.
Contingent valuation.
Different valuation techniques are appropriate for each of the four broad effects
categories. Choice of technique will depend on the magnitude and significance of the
effects, on the availability of data and on the analytical/institutional capability in any
given context. Table 1.3 summarizes both the characteristics of the valuation methods
and the valuation options available in each environmental effects category.
The choice of resource valuation approach will need to be adapted to fit the spatial
scale of the cause and effect relationship that is being assessed. Barbier (1993) identifies three forms of assessment:
• Impact analysis: related to identified impacts generated by a project, policy or course
of action usually within a restricted spatial area, but sometimes requiring more extensive drainage basin-wide data and analys~s;
R.K. Turner· B.T. Bower
Table 1.3. Coastal zone impacts and valuation methods
Valuation methods
Market orientated benefit valuation
Benefit valuation using actual market prices of productive goods and services based on changes in value
of output, or loss of eamings. Examples include loss of fisheries output due to pollution, or value of productive services or recreational benefits loss, through increased illness caused by coastal waters pollution.
Surrogate markets benefit valuation
Environmental surrogates may include marketed goods, property values, other land values, travel
costs of recreation, wage differentials, compensation payments. Examples of such proxies are
entrance fees to national parks as a proxy for value of visits to protected areas, changes in commercial
property values as a result of water pollution, or compensation for damage to fisheries.
Cost valuation using actual market prices of environmental protection inputs
Preventive expenditures, replacement costs, shadow projects, cost-effectiveness analysis. For example
the ~ost of environmental safeguards in project design, cost of replacing resource damage by pollution
or conversion, cost of supplying alternative recreational facilities destroyed by development activities,
or cost of altemative means of sewage sludge disposal in marine waters can be used as cost indicators.
Survey orientated (hypothetical valuation)
Contingent valuation or contingent ranking questionnaire-based surveys of individuals to elicit
willingness-to-pay or to-be-compensated valuations.
Effects categories
Valuation method options
Productivity
E.g. Fisheries, agriculture, tourism, water
resources, industrial production, marine
transport, storm buffering and coastal
protection.
Health
Amenity
Coastal ecosytems, wetlands, dunes,
beaches, etc., and some landscapes,
including cultural assets and structures.
Existence Values
Ecosystems; cultural assets.
Market valuation via prices or surrogates;
Preventive expenditure;
Replacement cost/shadow projects/cost-effectiveness
analysis;
Defensive expenditure.
Human capital or cost of illness;
Contingent valuation;
Preventive expenditure (avertive behaviour);
Defensive expenditure.
Contingent valuation/ranking;
Travel cost;
Hedonic property "value" method.
Contingent valuation.
Different valuation techniques are appropriate for each of the four broad effects
categories. Choice of technique will depend on the magnitude and significance of the
effects, on the availability of data and on the analytical/institutional capability in any
given context. Table 1.3 summarizes both the characteristics of the valuation methods
and the valuation options available in each environmental effects category.
The choice of resource valuation approach will need to be adapted to fit the spatial
scale of the cause and effect relationship that is being assessed. Barbier (1993) identifies three forms of assessment:
• Impact analysis: related to identified impacts generated by a project, policy or course
of action usually within a restricted spatial area, but sometimes requiring more extensive drainage basin-wide data and analys~s;