What is the concept of environmental valuation?

Economics Environmental Externalities Questions



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What is the concept of environmental valuation?

The concept of environmental valuation refers to the process of assigning a monetary value to environmental goods and services that are not typically bought and sold in the market. It involves quantifying the economic worth of environmental resources and the benefits they provide to society. Environmental valuation helps in understanding the economic impact of environmental externalities, such as pollution or habitat destruction, and aids in decision-making by comparing the costs and benefits of different environmental policies or projects.