A comparison of commonly used economic valuation methods for natural resource damage assessments

Conference · Sun Dec 31 04:00:00 EST 1995

OSTI ID:452062

Rockel, M L ^[1]

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1. ENTRIX, Inc., Wilmington, DE (United States)

The recent finalization of the Oil Pollution Act Regulations for Natural Resource Damage Assessment (NRDA) has signaled a shift in emphasis from attempting to monetize natural resource injuries to determine the appropriate scale of restoration that will provide compensation for those injuries. This shift in emphasis to a restoration compensation approach has resulted in the development of new economic methods and a refining of old methods to address this new endpoint. These methods include service for service approaches such as Habitat Equivalency Analysis, and valuation approaches which are travel costs and random utility models, contingent valuation methods and Hedonic pricing methods. This paper will provide an overview of the methods used for determining the value of natural resource injuries and the scale of restoration compensation. Examples using the service-for-service approaches and valuation approaches to provide the appropriate scale of restoration will be provided. The paper also compares the pros and cons of each method with respect to their underlying assumptions and their overall efficacy.

• OSTI ID: 452062
• Report Number(s): CONF-961149--
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
CALCULATION METHODS
COMPARATIVE EVALUATIONS
ECONOMIC IMPACT
ENVIRONMENTAL IMPACTS
HAZARDOUS MATERIALS SPILLS
LAND RESOURCES