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Economics Unit

Non-market Valuation of Changes in Forest Health

Investigators:

Thomas P. Holmes, Southern Research Station
Randall A. Kramer, Duke University

Description:

The concept of ecosystem health focuses attention on holistic, whole-system properties rather than on individual, perhaps charismatic species. Because ecosystems are complex, different sets of ecosystem attributes may be perceived as holding value. The total value of an ecosystem may be conceptualized as the sum of the values deriving from the use and existence of the ecosystem across members of society. The contingent valuation (CV) method can be used to estimate total ecosystem value and ecosystem existence value. Because CV methods have been rapidly gaining popularity, the validity of CV-based benefit estimates is a matter of increasing concern. Also, the equity impacts associated with the protection and conservation of unique ecosystems need to be considered in regards to the prioritization of government activity. Based on a study of the threatened high-elevation spruce-fir ecosystem in the southern Appalachian Mountains, we found that: (1) existence values are an important and empirically distinct component of total ecosystem value, (2) yea-saying and starting point bias influence dichotomous choice CV responses, and (3) protection and conservation of unique ecosystems do not generate benefits only for the wealthy and better educated.

Problem Area(s): Quantitative impacts, Public involvement
Status: Completed

Products:

Holmes, Thomas P.; Kramer, Randall A. 1996. Contingent valuation of ecosystem health. Ecosystem Health. 2 (1): 56-60.

Holmes, T.P. and Kramer, R.A. 1995. An independent sample test of yea-saying and starting point bias in dichotomous-choice contingent valuation. Journal of Environmental Economics and Management 29:121-132.

Aldy, Joseph E., Randall A. Kramer, and Thomas P. Holmes. Forthcoming. Environmental equity and the conservation of unique ecosystems: an analysis of the distribution of benefits for protecting southern Appalachian spruce-fir forests. Society & Natural Resources.

modified: 15-SEP-2000
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