Valuing resources in Thailand using the budget constraint method

Abstract

This study develops comprehensive monetary conversion factors for Thailand to apply in life cycle assessment (LCA) in order to account for environmental externalities associated with products and services. An innovative methodology integrates resource scarcity alongside six determinants within the budget constraint approach to derive lacking economic production factors. The estimated potential gross economic production per capita represents the willingness to pay for alleviating damages. Impact assessment data is then monetized into quality adjusted life years, biodiversity adjusted hectare years, and monetary values. The resulting factors enable consistent valuation of environmental costs and benefits of products and services alongside techno-economic aspects. The outcomes are relevant to sustainability assessment and reporting needs by offering localized means to quantify dependencies and externalities. Application of developed monetary conversion factors to energy, transport, industry, infrastructure, and tourism sectors can internalize environmental impacts from production and consumption activities. The methodology provides policymakers and businesses with a holistic measure to make informed decisions aligned with sustainability goals and resilient economic growth. By reconciling development with resource conservation, this research aims to steer decisions that improve societal well-being and economic growth in balance with the planet.