Valuing nature I
Resume Lecture 6 at page 29, “Catch Shares and Territorial Rights,” and finish fisheries management. Then begin Lecture 7: Valuing the Environment: Methods. A resource’s value is not limited to market prices; use economic reasoning, choices, and surveys to study its nonmarket benefits.
Focus
- Complete fisheries policy and institutions
- Market prices, use values, and nonuse values
- Stated- and revealed-preference methods
Prepare
- Resume Lecture 6 at page 29 and review TL Chapter 8
- Begin Lecture 7 and TL Chapter 4
- Prepare the project kickoff report · Due November 4, 11:59 PM
Practice
- Compare catch shares, territorial rights, and community rules
- Identify the benefit, affected population, and use or nonuse value
- Match a valuation method to a resource decision
Guiding question
How can we measure the benefits of a resource when its most important services are not sold in a market?
Learning targets
- Explain how catch shares, territorial rights, and other fisheries institutions change incentives.
- Distinguish a market price from the benefits of an environmental improvement.
- Identify use and nonuse values relevant to a resource decision.
- Explain the difference between stated- and revealed-preference evidence.
- Match a valuation method to the benefit and population being studied.
Planned class sequence
- First: finish Lecture 6 from page 29, Catch Shares and Territorial Rights.
- Then: begin Lecture 7, Valuing the Environment: Methods.
Lecture slides
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This week’s materials
TL refers to Tietenberg and Lewis, Natural Resource Economics: The Essentials, 2nd edition. Chapter numbers on this page follow that edition, not the larger Environmental and Natural Resource Economics textbook.
Reading: finish TL Chapter 8 — Common-Pool Resources: Commercially Valuable Fisheries — with Lecture 6, then begin TL Chapter 4 — Valuing the Environment: Methods — with Lecture 7.
Coming next
Week 11 continues with Valuing Nature II: method choice, the credibility of evidence, benefit transfer, and the use of estimates in benefit-cost analysis.