Evidence + credibility · Week 11

Valuing nature II

Continue Lecture 7 at page 16 with willingness to pay and willingness to accept, then examine how stated- and revealed-preference methods provide evidence for environmental decisions.

Nov 2–6Lecture 7 · Begin at page 16TL Ch. 4Project kickoff · Nov 6

Focus

  • Willingness to pay and willingness to accept
  • Stated- and revealed-preference methods
  • Evidence, validity, and benefit transfer

Prepare

  • Resume Lecture 7 at page 16 and continue TL Chapter 4
  • Read the willingness-to-pay and willingness-to-accept guide
  • Review the benefit, population, and baseline in a valuation question
  • Submit the project kickoff report by November 6, 11:59 PM

Practice

  • Defend a method for a resource decision
  • Identify threats to a credible estimate
  • Compare estimates without double counting benefits

Guiding question

What makes a valuation estimate credible enough to inform a resource decision?

Learning targets

  • Select and defend a valuation method for a specific resource decision.
  • Compare stated- and revealed-preference evidence without double counting benefits.
  • Diagnose validity threats involving scope, confounding, and survey design.
  • Explain when benefit transfer is appropriate and what limits its reliability.
  • Use valuation estimates in a benefit-cost comparison while recognizing uncertainty and distributional effects.

Lecture slides

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Lecture 7 · Valuing the Environment: MethodsBegin at page 16

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: TL Chapter 4 — Valuing the Environment: Methods.

Lecture 7Begin at page 16 · Valuing the Environment: MethodsReadingWillingness to Pay and Willingness to AcceptProject Kickoff ReportDue November 6, 11:59 PMResource Topic AtlasSuggested systems and starting points for the team project

Coming next

Week 12 turns to Forests + Wildfire Risk. We may finish valuation first if needed, then examine forest management, wildfire losses, and the role of development in fire-prone areas.

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