Environmental Engineering Reference
In-Depth Information
Achieving a complete economic valuation of an ecosystem requires a
substantial amount of research. However, even if complete valuation is
not initially achievable, an estimation of some of the indirect values of
ecosystems may be sui cient to allow a comparison of dif erent land-uses.
Optimization techniques can then be used to estimate the socially optimal
level of various natural resources required to maximize social welfare.
Notes
1. For a detailed explanation of the mathematics of proi t maximization, see Dowling
(1992).
2. Non-use values have also been identii ed but are not considered in this case. Estimation
of their values is extremely dii cult and not deemed relevant here. See Heywood (1995)
for further information.
3. The mathematics of the problem-solving are not given here but are relatively simple to
carry out.
4. Further details of how to carry out partial dif erentiation can be found in Dowling
(1992).
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