Concept Of Total Economic Value Research Articles

Direct and Indirect Contributions of Forest to the Other Sector of Economy Ethiopia: Review

The forest sector contributes to economy beyond itself and extends to other sectors through direct and indirect effects. Insufficient identification of forest contribution to other sector of economy can result in the underestimation of the sector and leads to poor policy priority. The main objective of this study is to identify the contribution of forest to other sector of economy in Ethiopian. For this study both quantitative and qualitative secondary data were used. The result study showed that forest resources add different values to other sector of economy such as agriculture, food security, health, construction, energy and water, tourism, employment and income generation. However, the current system of national accounts does not fully capture the direct and indirect forest contribution to the other sector of economy. The study recommends that forest sector needs to adopting the concept of total economic value and adequately identifying both direct and indirect contribution of forest to other sector of economy. Furthermore, develop and use updated socioeconomic data, forest specialized surveys to better understanding the contributions of forests to other sector and national economy. Keywords: Forest Contribution, Other sector Economy, TEV Methodology, Ethiopia DOI: 10.7176/JRDM/88-01 Publication date: October 31 st 2022

Valuation challenges of urban green infrastructure

The current article provides an overview of the benefits provided by urban green infrastructure (GI), as well as the application of the concept of total economic value and the relevance of the United Nations Sustainable Development Goals. Afterward, environmental valuation methods that can be used to calculate the benefits in monetary units are presented, highlighting the potential problems or biases. The relevance of cost-based, revealed, and stated preference methods are discussed. It is concluded that several case studies are available, however, the abundance of services provided and differences in measuring the GI services in natural units make monetary valuation ambiguous or challenging. Still, the growing number of people living in urban neighbourhoods makes it more and more expected to measure and valuate the benefits.

FORMATION OF THE TOURIST AND RECREATIONAL FOREST POTENTIAL: METHODOLOGICAL AND STRATEGIC GUIDELINES FOR SYSTEM ASSESSMENT

The current state of spatial and territorial development of recreational nature management in Ukraine is characterized by the fact that the country has significant natural resource potential, unique recreational resources, as well as a valuable natural reserve fund. This proves that the possibility for further development and forestland use for recreational purposes, and the formation of spatial-territorial recreational systems with the involvement of forestlands can be widely developed. At the same time, this is a prerequisite for the active development of market relations in the field of recreational and tourist management, since the diversity and uniqueness of forest resource potential creates the opportunity to gain competitive advantages in using separate recreational resources that will provide high demand and prices for them. From these perspectives, the purpose of the paper is to deepen economic assessment of recreational forest resource potential for ensuring the formation of territorial forest resource assets (natural capital) in the context of strategic guidelines for sustainable forestry spatial development. The main principles of formation of the territorial and recreational forest resource potential (capital) have been considered in this paper. Also, it should be taken into account that, at present, the methods of economic (cost) estimation of certain types of natural resources, which are involved in economic activity and recreational activities, are well-developed and widely used. Therefore it should be noted that the problem of an integrated system assessment of territorial forest resource capital is relevant for the recreational use of forest lands, since it is necessary to evaluate, as far as possible, and more fully, all of its components, for the effective decision-making in the management mechanism. The scheme of the system assessment of the territorial and recreational forest potential (TRFP) has been developed and represented. The main objectives of ecosystem management of forest areas in the context of providing balanced recreational forestland management have been determined. It was concluded that comprehensive and system assessment of recreational forest resource capital based on the application of the natural capital methodology and the concept of total economic value (value) should become an effective lever in the market-oriented mechanism of forest management in the spatial and territorial format. The article identifies theoretical and conceptual guidelines for system assessment of territorial forest capital in the context of spatial development strategies.

Картографирование эколого-экономической ценности экосистем национального парка «Тункинский» Республики Бурятия

The underestimation of ecosystem services that exists today is explained by the complexity of the value expression of its various functions and interrelationships. Naturally, it is impossible to fully determine the economic value of nature, since the value of goods irreplaceable for life tends to infinity. At the same time, the value indicator of these benefits in a market economy is a determining condition for financial support for the preservation and self-reproduction of natural ecosystems. In the context of the formation of global markets for ecosystem services, the prospects for the ecological and economic assessment of specially protected natural areas are great. Such assessments should become mandatory for the regions and be taken into account in their development strategies. This also applies to the territory of Tunkinsky National Park, located in the Republic of Buryatia, which has become an object of mapping. Based on the concept of total economic value, the component and aggregate values of the cost of direct use of a number of services of the national park were calculated. The information on the nature and use of natural resources in the study area served as the basis for ecological and economic calculations. A map of the natural-territorial complexes of Tunkinsky National Park was compiled, the analysis of which made it possible to get an idea of the distribution of the main natural-territorial complexes within the study area, as well as to determine their areas. The assessment of direct ecosystem services was carried out based on the productivity of biological resources for a number of species of animals, fish, wild plants, as well as recreational and pasture resources. The assessment of indirect services is calculated on the basis of carbon sequestration by forests and swamps, filtration capacity of swamps. The conducted ecological and economic assessment and its visual display on the maps of the studied territory can help in the development of ways to optimize nature management, which will contribute to the careful use of natural resources, diversification of its structure in order to preserve the ecological framework of the territory, ethnocultural and landscape diversity.

Payments for forest ecosystem services: a look at neglected existence values, the free-rider problem and beneficiaries' willingness to pay

Payment for ecosystem services (PES) programs have emerged as a financial mechanism to ameliorate market failures associated with the multitude of non-market ecosystem services (ES) provided by forest ecosystems. However, the defining principles of PES in theory is far from what pertains in practice. Focusing on the concept of total economic value (TEV) of ES, we identify that PES often include compensation as a proxy for the supply of ES and largely neglect to encompass the different attributes of an ES' TEV, particularly existence values. Most PES schemes are limited by scope of funding and incentives often account for as little as 0.1% to 8.5% of the full annual ES economic values per ha. The mechanism of PES therefore needs to be broadened to integrate potential levels of payments that direct and indirect beneficiaries might be willing to pay to preserve forest ecosystems and their services. Some beneficiaries might be willing to pay for some ES and altruistically expect others to free-ride on their payment. Research efforts should aim at providing better understanding of beneficiaries' willingness to pay in order to expand the demand-side of PES and reduce uncertainties.

The Total Economic Value of Sport Tourism in Belt and Road Development—An Environmental Perspective

The development of the belt and road region leads cities to significantly increase the amount of public expenditure on the new construction of facilities and infrastructure. Mass construction not only relies on many environmental resources, but might also destroy the local natural environment. In order to reveal the importance of the natural environment, this study explores the economic value of the natural landscape for sport tourism in Taiwan. While the concept of total economic value (TEV) is applied to the Sun–Moon Lake Swimming Carnival Event, the travel cost method (TCM) is adopted to estimate the use value for participants, and the double-bounded dichotomous contingent valuation method (CVM) and survival analysis are performed to evaluate the non-use value for the residents. The use value is on average NT$ 5668 for one participant. The median willingness to pay for the option value, existence value and bequest value of every resident is NT$433, NT$411 and NT$274, respectively.

ECOLOGICAL AND ECONOMIC EFFECTIVENESS OF USE LAND IN CONDITIONS OF INFRINGEMENT OF INSTITUTIONAL TRANSFORMATIONS

The article is devoted doctrinal issues of environmental and economic effectiveness of use land in conditions of infringement of institutional transformations. The modern approaches to the definition of content of ecological and economic effectiveness of land use are analyzed. It is established that the overwhelming majority of domestic researchers interpret this notion regarding the use of agricultural land or farm land. It is proved that such an approach is justified, taking into account the structure of the land fund of Ukraine. However, this reduces other goals of the land user and functions of the land. It is proposed to investigate the category of ecological and economic effectiveness of land use in accordance with the provisions of the ecological economics, social welfare theory, and concept of total economic value. Based on the classification of land functions, the criteria of selection material content and social form of ecological and economic effectiveness of land use are determined.

PECULIARITIES OF FINANCING NATIONAL NATURAL PARKS IN POLAND AND UKRAINE

The main sources of financing of national natural parks have been defined. The foreign experience in financing national parks has been analysed. The paper presents the history of creating national parks in Ukraine and Poland, gives their short characteristics. The common issues are revealed in the work of national natural parks and their specifics in each state. The basic prospects of development of the protected areas in Ukraine have been ordered. The innovative mechanisms for biodiversity conservation tools were expanded. The methodology approaches to the biodiversity conservation in the Ukraine’s national state accounts were developed and they are based on the new calculations of the economic evaluation of the natural ecosystem functioning. This technique is based on the concept of total economic value of ecosystem functioning.

Valuing Water Resources in Turkey: A Case Study of Bey&#351ehir Lake

Water resource management is critical to Turkey’s economy and environment. The country has about 112 billion m3 per year of economically exploitable water. However, population growth, climate change and pollution of water bodies are putting increasing pressure on these resources. In this context, understanding the contribution of water to the economy and environment is crucial for its conservation. To meet this need, the World Bank launched a program aiming at improving valuation and accounting systems of natural resources in Turkey. As part of this program, this article estimates in monetary terms the economic value of water in Bey?ehir Lake, the largest freshwater lake in Turkey. Valuation is based on the Total Economic Value concept, which includes use and non-use values. The results show that the economic value of water is about seven times higher than its financial value. In addition, the economic value of water allocated for municipal use (TL5/m3) is substantially greater than that supplied for irrigation (TL0.5/m3). The analysis suggests that allocation of water from Bey?ehir Lake among different uses is inefficient. To validate this conclusion and improve allocation, a more comprehensive assessment of the economic benefits of water resources is needed, particularly of water supply for irrigation, municipal use, recreation and biodiversity. The analysis also indicates that economic valuation can be a powerful tool to improve water management at the river basin level.

The economics of protected areas – a European perspective

Abstract This review article argues that the economic consequences of protected areas (PA) represent a growing field of research for economic geographers, which is related to the rising share of land area covered by PA in recent decades. In a theoretical section concepts and ideas of the economics of PA like the public good character of PA benefits or the total economic value concept are presented. The specific characteristics of European PA situated in cultural landscapes strongly shaped by human land use require a comprehensive overview of existing economic valuation studies. Their achievements and gaps are shown and discussed taking the German-speaking countries as an example.

Total economic value of forest resources in Turkey

Forests, like some other natural resources, perform a set of functions to meet the needs of people. It is usually impossible to state the monetary value of all the goods and services provided by forest resources. As a research area, this topic is gaining importance rapidly in Turkey as well as in other developing countries. In this study, the contribution of direct and indirect use values, option values, existence values and negative externalities to the Total Economic Value (TEV) were accounted. The most important share of Turkish forestry in its TEV was represented by the direct use values including wood and non-wood forest products. The option and existence values remained somewhat vague and difficult to calculate. In this study, the TEV concept was reviewed for Turkish forestry, and then the TEV components of forest resources were presented and discussed. From the calculations undertaken for each TEV component, it turned out that the positive TEV component of Turkish forests was about US$ 1 704 810 889,48. This figure should be considered as a minimum estimate due to the fact that the values of many externalities assumed lower bounds being based on conservative assumptions. Key words: Total economic value, Turkish forests, forest goods and services.Forests, like some other natural resources, perform a set of functions to meet the needs of people. It is usually impossible to state the monetary value of all the goods and services provided by forest resources. As a research area, this topic is gaining importance rapidly in Turkey as well as in other developing countries. In this study, the contribution of direct and indirect use values, option values, existence values and negative externalities to the Total Economic Value (TEV) were accounted. The most important share of Turkish forestry in its TEV was represented by the direct use values including wood and non-wood forest products. The option and existence values remained somewhat vague and difficult to calculate. In this study, the TEV concept was reviewed for Turkish forestry, and then the TEV components of forest resources were presented and discussed. From the calculations undertaken for each TEV component, it turned out that the positive TEV component of Turkish forests was about US$ 1 704 810 889,48. This figure should be considered as a minimum estimate due to the fact that the values of many externalities assumed lower bounds being based on conservative assumptions. Key words: Total economic value, Turkish forests, forest goods and services.

The concept of Total Economic Value of environment: A reconsideration within a hierarchical rationality

Abstract Beyond a purely typological distinction between use, option and non-use values, these different environmental values are not treated differently within the concept of Total Economic Value. When expressed in monetary terms from individual preferences, these values are incorporated into a sole approach reasoning in terms of utility. In this paper, we argue that option and non-use values stem from more different levels of choice problems than use values and thus, must be apprehended in a multidimensional framework. We distinguish three levels of choice problem to which various rationality criteria of Social Cost–Benefit Analysis are attached. This allows us to make a distinction between the different components of the value of the environment according to the level of problems to which they're relevant. Thus, we propose to re-interpret the concept of Total Economic Value, particularly option and non-use values, within this multidimensional framework. We present an application of this framework for the selection of preferred highway route (highway A85 in France).

The limits to economic valuation of biodiversity

In practice, monetary valuation of biotic resources by the concept of total economic value (TEV) is a powerful tool for a rational treatment of this fraction of natural capital and for its conservation. Beyond methodological limits to monetarisation with regard to its marginal character there are also moral limits. Adopting the weakest and least controversial assumptions regarding both mankind’s dependence on biodiversity and environmental ethics, one is led to the conclusion that the impossibility of communicating with future generations forbids us to value biodiversity only in monetary terms. Fairness towards futurity demands that we consider conservation as a constraint on economic activity.