Economic Assessment of Marine Quality Benefits: Applying the Use of Non-Market Valuation Methods

Abstract

This paper conveys two principal important messages. The first message is of a methodological nature and refers to the review of the main reasons that steer economists to an interest in the field of the economic valuation of the environmental benefits. As we have seen, policy guidance constitutes an important motivation since most of the monetary value assessment of these benefits are crucial when performing a cost-benefit analysis of any environmental protection project. Furthermore, since most of environmental benefits are not market priced, we have identify and described the wide range of economic valuation tools that the economist has access to when deciding to run an economic valuation exercise. The second message is of an empirical nature and refers to presentation of two case studies. In each valuation study, we not only explain how different economic valuation methodologies, including travel cost, contingent valuation and stated choice method, can be applied to the economic valuation of marine environmental benefits but also stresses the link between the valuation estimates and policy guidance. In other words, a economic valuation exercise needs a follow-up. In particular, the valuation results always need to be contrasted with the monetary costs regarding the (specific programme of) marine environmental protection. From a cost benefit perspective, the protection is recommended if and only if the benefits from such a marine protection programme far exceeds the costs.