Encyclopedia of Law and Economics

Living Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Non-market Valuation

  • Sébastien Roussel
  • Léa Tardieu
Living reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7883-6_712-1

Definition

Non-Market valuation is a set of techniques that aims at reflecting the economic value of changes, in the availability or quality, of goods and services that are not intended to be traded in the market (e.g., health care, education, environment). The objective is to estimate the impacts of these changes on one’s utility and by extension on the social welfare, in order to manage these goods and services by considering their true value to society.

Economic Values

In a neoclassical perspective, goods and services are valued in a utilitarian framework, i.e., individuals are rational, have various categories of desires and wishes (e.g., food, housing clothes…), and are able to classify them according to their preferences. They aim at reaching a maximum level of individual welfare according to their income constraint (utility maximization under budget constraint). Moreover, individuals are able to value the impact of an additional unit of good on their own welfare, which is...

This is a preview of subscription content, log in to check access.

References

  1. Arrow K, Solow R, Portney P, Leamer E, Radner R, Schuman H (1993) Report of the NOAA panel on contingent valuation. Fed Regist 58(10):1–67Google Scholar
  2. Bateman IJ, Day BH, Georgiou S, Lake I (2006) The aggregation of environmental benefit values: welfare measures, distance decay and total WTP. Ecol Econ 60(2):450–460CrossRefGoogle Scholar
  3. Carson RT, Mitchell RC, Hanemann M, Kopp RJ, Presser S, Ruup PA (2003) Contingent valuation and lost passive use: damages from the Exxon Valdez oil spill. Environ Resour Econ 25:257–286CrossRefGoogle Scholar
  4. Chevassus-au-Louis B, Salles J-M, Pujol J-L (2009) Approche économique de la biodiversité et des services liés aux écosystèmes. Contribution à la décision publique. La Documentation Française, Paris (Rapports et documents. Centre d’analyse stratégique)Google Scholar
  5. Costanza R, de Groot R, Sutton P, van der Ploeg S, Anderson SJ, Kubiszewski I, Farber S, Turner RK (2014) Change in the global value of ecosystem services. Glob Environ Chang 26:152–158CrossRefGoogle Scholar
  6. Gómez-Baggethun E, de Groot R, Lomas PL, Montes C (2010) The history of ecosystem services in economic theory and practice: from early notions to markets and payment schemes. Ecol Econ 69(6):1209–1218CrossRefGoogle Scholar
  7. Hanley N, Barbier EB (2009) Pricing nature: cost-benefit analysis and environmental policy. Edward Elgar, CheltenhamGoogle Scholar
  8. Hanley N, Spash CL (1993) Cost benefit analysis and the environment. Edward Elgar, CheltenhamGoogle Scholar
  9. Hausman JA, Leonard GK, McFadden D (1995) Utility-consistent, combined discrete choice and count data model assessing recreational use losses due to natural resource damage. J Public Econ 56(1):1–30CrossRefGoogle Scholar
  10. Hsu S (2005) On the role of cost-benefit analysis in environmental law. Environ Law 35(1):135–174Google Scholar
  11. Nelson E, Mendoza G, Regetz J, Polasky S, Tallis H, Cameron D, Chan KMA, Daily GC, Goldstein J, Kareiva PM, Lonsdorf E, Naidoo R, Ricketts TH, Shaw M (2009) Modeling multiple ecosystem services, biodiversity conservation, commodity production, and tradeoffs at landscape scales. Front Ecol Environ 7:4–11CrossRefGoogle Scholar
  12. Roussel S (2018) Ecosystem services. In: Marciano A, Ramello GB (eds) Encyclopedia of law and economics. Springer, New York.  https://doi.org/10.1007/978-1-4614-7883-6_711-1 (in press)CrossRefGoogle Scholar
  13. Tardieu L (2017) The need for integrated spatial assessments in ecosystem service mapping. Rev Agric Food Environ Stud 98:173–200CrossRefGoogle Scholar
  14. The Economics of Ecosystems and Biodiversity (TEEB) (2010) In: Kumar P (ed) The economics of ecosystems and biodiversity: ecological and economic foundations. Earthscan, London/Washington, DCGoogle Scholar
  15. Thompson DB (2002) Valuing the environment: courts’ struggles with natural ressource damages. Environ Law 32(1):57–89Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of EconomicsCEE-M, Université Montpellier, CNRS, INRA, SupAgro, Université Paul Valéry Montpellier 3MontpellierFrance
  2. 2.BETA, Université Lorraine, INRA, AgroParisTechNancyFrance