Environmental Engineering Reference
In-Depth Information
Economic values in managed
landscapes
Use values
Non-use values
1. Direct use
value
2. Indirect
use value
3. Option
value
6. Existence
value
Livestock, crop
and forest
products
Educational,
recreational and
cultural uses
Watershed
protection
Nutrient cycling
Microclimatic
regulation
Carbon store
External support
etc
Future uses as
per 1 and 2
Cultural heritage
Intrinsic worth
Source:
Adapted from Barbier (1994).
Figure 4.3
Economic values in managed landscapes
More recently, empirical studies on wildlife values have placed emphasis
on non-use values. These refer to situations where an individual knows a
biological resource exists and will continue to exist, independently of any
actual or prospective use by the individual and where that individual would
feel a 'loss' if the resource were to disappear (Brown, 1990). Existence value
arises when the utility function of a consumer is enhanced by the knowl-
edge that a certain wildlife species exists. As indicated in Figure 4.3, non-
use values thus refer to situations in which individuals would like to see a
biological resource preserved 'in its own right'. Non-use values include the
following:
bequest value
: the value
of ensuring that the resource remains
intact for one's future heirs (Krutilla, 1967);
existence value
: the value that
arises from ensuring the survival of a resource (Pearce and Turner, 1990;
Perman et al., 2003). Existence value is usually assumed to embody some
form of altruism, either for other human beings or for a concern for non-
human entities. For example, some of the literature distinguishes between
philanthropic motives based on the provision of services to other people,
and altruistic behaviour solely concerned with nature. The sum of all use
values and non-use values is referred to as total economic value (TEV).
In the literature, two classes of use value are sometimes dei ned - direct
use value and indirect use value. This is illustrated in Figure 4.3. Direct
