Total Economic Value Research Articles

Value and Economic Significance of the Cold for Human Life and Activities in the Arctic

The natural resource of the Cold is often overlooked. The Arctic has it own characteristic features: cold climate, glaciers and permafrost. What is the cost of the Cold, and how can we calculate it? Many problems are associated with the attempts to identify the cost characteristics of the Cold using the methods that are employed to establish the cost of production material resources. The current approach to the evaluation of the natural resources does not allow to adequately assess the significance of the Cold as a natural resource in the society’s life, in particular, in the Arctic. The cost of the Cold can be considered from the point of view of the concepts of the total economic value (TEV). The Cold cost assessment methods cases for the cost calculation of direct and indirect use of the Cold are presented.

Economic valuation of rice agricultural land in Bogor regency

This study aims to calculate the total economic value of lowland rice farming in Bogor Regency, and identify the factors that influence land conversion from agricultural to non-agricultural uses. By using the productivity method approach, CVM and benefit transfer, it can be seen that the total economic value of lowland rice farming in Bogor Regency, West Java is Rp. 119,480,139 / hectare / year. The new economic value is calculated based on functions as a food producer, as a function of absorbing labor, as a function of food security stability, and as a function of flood mitigation, not yet included as a function of erosion and sedimentation mitigation, as a function of air conditioning and freshener, as a function of carbon retarding, as a function of recycling organic waste, as well as a function of social culture and rural appeal. Then by using descriptive statistical analysis and simple regression, it is known that the conversion of paddy farming land in Bogor Regency, is influenced by internal factors, external factors, and government policies. Internal factors include: the geographical location of agricultural land, the area of agricultural land owned by farmers, the amount of farmers’ income, transformation of farmers’ economic structure, and farmers’ understanding of multifunctional agriculture. External factors include: population growth, urbanization, the macroeconomic situation, the ability of agricultural land, the value of land (land prices), the opportunity to buy land elsewhere which is cheaper, and the influence of the private sector. Government policy is the factor that is considered to have the greatest influence on the occurrence of agricultural land conversion in Bogor Regency, especially the problem of the implementation of government policies relating to rules regarding conversion of agricultural land that have not been implemented optimally.

Identification and estimation of the marine ecosystem services surrounding selected offshore islands of Vietnam

Intertidal and larger marine ecosystems surrounding the islands of Bach Long Vi (Northern Vietnam), Con Co (Central Vietnam) and Tho Chu (Southernmost Vietnam) which have typical and valuable ecosystems are planned as marine protected areas. They are the study area of this paper on identification and estimation of these ecosystem services. The total economic valuation concept is used to estimate the total value of the ecosystems during the period March 2014 to October 2015. The marine ecosystems surrounding Bach Long Vi Island were estimated servicing 599,047.8 million VND (Vietnam Dong)/year in total (corresponding to 26.62 million USD (US dollar—1 USD = 22,503.68 VND (rate May 1, 2015)); calculated per hectare; this value corresponds with 94 million VND/year. The marine ecosystems surrounding Con Co Island provide a total monetary service of 267,518 million VND/year (approximately, 12 million USD/year); this corresponds with 307 million VND/ha/year. The marine ecosystems surrounding the Tho Chu archipelago were worth 565,236 million VND/year (approximately, 25 million USD/year); this corresponded with 125.47 million VND/ha/year. These figures show the most significant service value of marine ecosystems, particularly around the three islands.

Economic valuation of the mangrove ecosystem in Purwodadi Sub-district, Purworejo Regency, Central Java

Deforestation of mangroves caused by land conversion into ponds occurs on the southern coast of Purwodadi Sub-district, Purworejo Regency, Central Java. In fact, the mangrove ecosystem has an important role related to global climate change that is happening at this time. Mangroves have the ability to absorb more carbon than other types of forests. Since 2011, there was a mangrove rehabilitation program conducted in three villages in Purwodadi Sub-district, which was initiated by the Purworejo Regency Marine and Fisheries Service. Over time, the conditions of mangroves in each village varied. This study aims to calculate the economic value of mangrove ecosystems in the three villages of Purwodadi Sub-district, namely Gedangan, Jatikontal, and Jatimalang Villages. The method used is TEV (Total Economic Value) which consists of an analysis of direct use value using the market price approach, indirect use value using the replacement cost approach, the option value using the benefits transfer, and the existence value using the WTP method (Willingness to Pay). The results of the study show that the total economic value of mangroves in Gedangan Village is IDR 7,816,788,994.00 in Jatikontal Village in the amount of IDR 10,524,895,152.00, and in Jatimalang Village in the amount of IDR 3,645,653,186.00.

Valuation of Coastal Ecosystem Services: A Case of Tangerang Regency, Indonesia

The north coast of Tangerang Regency, which borders directly with the Java sea, has great potential to be developed and made several coastal areas like the center of economic growth. Coastal Tangerang Regency also has several ecosystem components such as mangrove ecosystems and sand beaches ecosystem, which are currently degradation. Development planning with an ecosystem service approach is essential to understand as an effort to overcome trade-offs between development and the environment. This study aims to assess the Tangerang Regency coastal ecosystem services. The method used is the total economic value approach. Ecosystem services that will be analyzed are mangrove ecosystem services, and sand beach ecosystem services that are on the coast of Tangerang Regency. The data used is secondary data in the last five years (2014-2019). The results showed that the total value of coastal ecosystem services in the Tangerang Regency was IDR 32.610.028.060 per year or the US $ 2,29 million. This value can be considered to protect coastal ecosystems and increase the welfare of coastal communities that depend on ecosystem services. Environmental, economic, and social aspects need to be considered together to create a comprehensive development planning unit.

Teaching modules for estimating climate change impacts in economics courses using computational guided inquiry

The authors of this article introduce two teaching modules that aim to increase climate literacy and active learning in undergraduate economics courses through the incorporation of real-world data and modeling. These modules are based on the concept of computational guided inquiry (CGI), which combines a guided inquiry approach within a computational framework, such as Excel. In one module, students estimate and graph expected marginal damages due to regional sea level rise for various polar ice melt scenarios. In the second module, students partially replicate a journal article estimating the total economic value of ecosystem services in the Arctic. These modules have been used in urban, environmental, and climate change economics courses, and are ready to be implemented with minimal upfront cost to instructors.

The Value of Connectivity in the Automotive Sector – a First Look

This study looks at the actual value that connectivity in vehicles can bring to society and the different sectors affected, Connectivity is one of the four critical megatrends facing the automotive industry. These trends are autonomous driving, shared mobility and electrification, yet connectivity is both separate and integrated to these other megatrends. The importance of connectivity is therefore fundamental to the future evolution of the industry. The vehicle is emerging as the next digital platform which may be analogous to the evolution of the smartphone and the opportunities that connectivity provides has incentivized automakers to increasing install embedded connectivity to capture the value from this new ecosystem. Such vehicles are often termed connected vehicles. One estimate from McKinsey Advance Industries (2016) predicts that on-demand mobility and data-driven services from such vehicles could account for approximately $2 trillion (or approximately 30%) of the automotive revenue pool by 2030, with data connectivity services accounting for between $450-$750 billion per year. This growth is built upon advanced mobile telecommunication standards, in particular, cellular standards, which provide the enabling infrastructure for new connectivity-based products and services to emerge in the automotive/mobility sector. Below are highlighted results from the study: • Connectivity is a megatrend that is transforming the automotive industry towards a new mobility sector. In the near future, most new vehicles will be increasingly equipped with embedded connectivity capabilities due to safety regulations, development of V2X functionality, and the potential service revenue. • The growing value of connectivity in the automotive sector is predicated on the development of high performance, open telecommunication standards, such as advanced cellular technology (e.g. 4/5G). • The vehicle is becoming the next big digital platform, generating competition between the existing mobile/smartphone ecosystem and the emerging vehicle ecosystems for control of the value of automotive/mobility services. • Connected vehicle applications are still small but are growing. Current estimates of the revenue from the vehicle ecosystem to automakers were calculated at $670 (US) and $593 (WW) per connected vehicle, based on a subset of existing applications in 2018. • The total revenue from connectivity-enabled products and services in the automotive sector was calculated to grow from $223 billion to $483 billion from 2018-2023 for a subset of existing revenue pools, with forecasts predicting as much as $2 trillion by 2030. • Market revenues do not provide the whole picture, especially when multi-sided business models are deployed. Therefore, the total economic value, including consumer surplus and relevant externalities, is important to bear in mind when determining the value of connectivity in the automotive sector or regulation of the sector.

Toward Decision-Making Support: Valuation and Mapping of New Management Scenarios for Tunisian Cork Oak Forests

Forest ecosystems are an important anthropogenic pillar to human wellbeing, providing a multitude of ecosystem services. In Mediterranean countries, where climate change effects are exponentially increasing, the value of the forest ecosystem services is even higher and their preservation is more crucial. However, the biophysical and economic value of such services is usually not observable due to their non-marketable characteristics, leading to their underestimation by decision-makers. This paper aims to guide decision-making through a set of new management scenarios based on ecosystem services’ values and their spatial distribution. It is a cumulative multidisciplinary study based on biophysical models results, economically valued and implemented using the geographic information system (GIS) to analyze spatial data. The investigation was based on a biophysical and economic valuation of cork, grazing, carbon sequestration and sediment retention as a selection of ecosystem services provided by cork oak forest (Ain Snoussi, Tunisia). The valuation was made for the actual situation and two management scenarios (density decrease and afforestation of the shrub land), with emphasis on their spatial distribution as a basis to new management. The total economic value (TEV) of the investigated services provided by Ain Snoussi forest (3787 ha) was €0.55 million/year corresponding to €194/ha/year. The assessment of two different scenarios based on the land cover changes showed that the afforestation scenario provided the highest TEV with €0.68 million/year and an average of €217/ha, while the density decrease scenario provided €0.54 million/year and an average of €191/ha. Such results may orient decision-makers about the impact new management may have, however they should be applied with caution and wariness due to the importance of the spatial dimension in this study.

Valuing diversification benefits through intercropping in Mediterranean agroecosystems: A choice experiment approach

The agricultural sector faces a series of environmental challenges such as water and soil pollution, erosion or biodiversity loss, especially in monoculture systems. Alternatively, crop diversification is seen as an option to reduce negative impacts and to enhance agricultural Ecosystem Services (ES). Most of these ES, such as improving resilience, despite the benefits and the high social value, do not take part in the market. In this context, the present paper presents an analysis of social preferences regarding crop diversification practices in Mediterranean agroecosystems. To do so, a choice experiment has been developed to assess social demand for more welfare-improving agricultural cropping systems. Benefits were obtained from improving environmental and cultural ES provision due to intercropping, as crop diversification practices. The results show a strong social preference for crop diversification with regard to all the benefits considered in the experiment. In fact, the total economic value for non-market goods and services provided by intercropping, which ranges from 900 to 1400 €/ha/year, for some crops might be potentially higher than cropland financial benefits. These results highlight the social support for a change in agricultural model to reach sustainable agroecosystems, which is essential to ensure the success of agrarian and rural development policies.

Economic Value of the Sylva Arboretum of the Tanjungpura University Pontianak

Sylva Untan Arboretum has high biodiversity. However, these values and benefits are not yet known by many parties, hence the existence of the Sylva Untan Arboretum could be changed. The purpose of this study was to determine the economic value of the Sylva Untan Arboretum. The study was conducted using a survey method. Primary data was collected through observation and interviews, while secondary data was collected from various literature. The economic value was calculated using three methods, namely the market price method, substitution cost method, and contingency method. The data were analyzed using an analysis of total economic value. The results showed that the economic value of Sylva Untan Arboretum was IDR 15.346.872.680 per year. Economic value in the form of service benefits (intangible) was higher than the tangible value. The measurement of the economic value of Sylva Untan Arboretum can be done using other approaches and methods that are more holistic as a comparison of existing economic values especially for several values, such as biomass value, water absorption, and land rent. The measurement of the economic value of the Sylva Untan Arboretum needs to be developed to make a positive contribution to the people living around it, as well as decision making in land use.Keywords: arboretum, benefit, ecosystem, economic valuation

Assessing natural capital value in marine ecosystems through an environmental accounting model: A case study in Southern Italy

Coastal and marine natural capital stocks provide a bundle of ecosystem services vital to humans. The delivery of these benefits depends on the protection and sustainable management of natural capital through effective nature conservation strategies. Marine Protected Areas (MPAs) are recognized worldwide as important tools to protect biodiversity while ensuring the delivery of ecosystem services and promoting sustainable human activities. Following the results of a national project aimed at assessing the value of natural capital in the Italian MPAs, in this study we assessed the value of marine natural capital stocks in the Gulf of Naples and Campania Region (Southern Italy) based on a biophysical and trophodynamic accounting model. The assessment focused on four macro-habitats: sciaphilic hard bottom (SHB), photophilic hard bottom (PHB), soft bottom (SB), and Posidonia oceanica seagrass bed (PSB). The total biophysical value of natural capital stocks related to the total area of the Gulf of Naples and Campania Region was 5.70⋅1020 sej and 3.10⋅1021 sej, while the total economic value was 795.92 and 4323.16 M€. Although the SHB habitat only represents about 4% and 1% of the total marine area of the Gulf of Naples and Campania Region, it contributes by 28% and 7% to the total value of natural capital. These figures reflect the high convergence of natural input flows into the marine ecosystem for the generation of the SHB habitat, highlighting the importance of proper measures and actions for its protection. In addition, the calculated values of natural capital stocks were combined with the bionomic map of the Gulf of Naples and Campania Region to show the spatial distribution of natural capital value. The outcomes of this study can support local managers and policy makers in charge for implementing nature conservation strategies aimed at ensuring the sustainable use of marine resources.

Value based seismic design of structures using performance assessment by the endurance time method

A framework for optimal seismic design of structures, considering maximum value as the design objective, is introduced. In this framework, the value parameter incorporates a comprehensive set of performance indicators. Decision indicators are mapped into equivalent economic values and are directly involved in the design process. This approach leads to optimal assignment of the available resources to meet infrastructure requirements. The construction cost and the risk of seismic consequences are considered as the value components. FEMA-P58 methodology is utilized in estimation of the seismic consequences including the repair cost, repair time, injuries and casualties. Endurance Time method is employed as an efficient procedure for estimating the engineering demand parameters at different seismic hazard levels. The applicability of the Endurance Time method is verified and compared to the results of Incremental Dynamic Analysis. The proposed design procedure is employed in design optimization of two multi-story buildings. Design outcomes are compared to the outcome of the conventional code-based design procedure minimizing the structural construction cost, in terms of seismic response and consequences. The value-based design approach considerably increases the total economic value of the studied structures. The code-based design in the studied cases is found substantially sub-optimal considering the maximum achievable value.

VALUASI EKONOMI JASA LINGKUNGAN EKOSISTEM HUTAN TAMAN EDEN 100, DESA LUMBAN JULU, PARAPAT, SUMATERA UTARA

Eden 100 Forest Park is an ecotourism area that has the potential of natural resources that can be used as tourist attractions. Forest Park Eden 100 also provides environmental services such as hydrological forest services, forest services as carbon sinks, and forest services in producing timber and non-timber goods. This study aims to find out what environmental services are provided by the Eden 100 forest and to analyze the economic value of environmental services and the obstacles and challenges faced by managers in efforts to preserve forest ecosystems.
 The results showed that the Eden 100 Forest Park provides environmental services in the form of direct use environmental services, namely wood production with economic value of the economic value of wood production of Rp 7,822,633,800 and non-wood (fruits) of Rp 25,500,000, non-use value directly in the form of natural landscapes (ecotourism) whose value is calculated using the travel cost method (TCM) and a yield of Rp 1,164,181,800 is obtained, non-use value in the form of existence services whose economic value is calculated using the contingent valuation method (CVM) of Rp.60,158,120 , as a carbon sink value which is calculated using the allometric method, and a yield of Rp. 18,161,220,000 is obtained. From the results of this study, it can be concluded that the total economic value of the Eden 100 Forest is Rp. 27,233,693,720. This proves that the existence of the Eden 100 forest is a very big economic benefit if its sustainability is maintained because it can absorb carbon which gives a great economic value. Efforts to manage and preserve Eden Forest Park 100 as a tourist attraction have been carried out in an integrated manner with the government, private sector and local communities, but need to be increased so that forests can provide environmental services in a sustainable manner.

Environmental and economic regulation of sustainable spatial agroforestry

The article describes the strategic orientations of environmental and economic regulation of sustainable agroforestry under the conditions of anthropogenic and agro-natural environment formation. The necessity to determine the territorial agroforestry potential for further formation of the agroforestry natural capital and the forest reclamation planning of agricultural landscapes is discussed. The system and mechanisms of the forest environment and economic regulation of sustainable spatial agroforestry in terms of the motive factors' formation and creating linear-type forest shelterbelts by agribusiness entities require the agroforestry reclamation cadaster. The methodology of environment and economic assessment of creating forest shelterbelts from the perspectives of the ecosystem service economy has been improved. Some features of determining the 'total economic value' of forest protective belts have been considered in this article. A system of strategic targets (production, economic, environmental, and social) for environmental and economic regulation of the spatial agroforestry has been proposed.

Valuation of Ecosystem Services & Benefits of Son Beel Wetland in Assam, India: A Case Study of Natural Solutions to Climate Change & Water

Valuation of Ecosystem Services & Benefits of Son Beel Wetland in Assam, India: A Case Study of Natural Solutions to Climate Change & Water

The Economic Value of Kimhy Reserve in Backan, Vietnam

This study conducted to examine the total economic value (TEV) of Kimhy Reserve by using a combination of Stated Preference approach and Market-based approach such as market price method, replacement cost, avoidable cost. The results indicated that Kimhy Reserve has use value and non-use value. The TEV of Kimhy Reserve for adjacent community was about 3.3 billion VND per year, equivalent to USD 364.83 per household. The economic value generated from direct use value accounted for about 67%. The result also pointed out that the indirect use value was about 23%. It was clear seen that almost livelihood of the adjacent community was relative to Kimky Reserve. Given the high level of illegal natural resource extraction and wildlife trade, the livelihood of community around is affected seriously. The results of study recommend that the economic and environmental value of Kimhy Reserve should be recognized by local community. The policies should be implemented better to protect Kimhy Reserve.

Economic Impact of Cleghorn Springs State Fish Hatchery, Rapid City, South Dakota, USA

Cleghorn Springs State Fish Hatchery, Rapid City, South Dakota, USA is a public fish hatchery producing trout and salmon for recreational angling in South Dakota. Funding for the hatchery comes from an excise tax on fishing equipment and the sale of hunting and fishing licenses. This study is an assessment of the local economic effect of hatchery expenditures and fish production for 2019. Fish reared at Cleghorn Springs State Fish Hatchery in 2019 had a calculated total economic impact value of $5,105,825.89. This value was added to Cleghorn Springs estimated share of angler expenditures in the Black Hills National Forest, increasing the total local monetary impact to $89,405,101.86. Cleghorn Springs State Fish Hatchery generated $171.93 of local economic output per budgetary dollar spent in 2019.

Total Economic Value and Value Structure of Professional Sports Teams: Empirical Analysis Using the Contingent Valuation Method

The purpose of this study was to clarify the total economic value and value structure of professional sports teams through the CVM approach. The results of the survey showed that the average of willingness to pay (WTP) was 587 yen, and the population of WTP was about 3.28 billion yen. From the weighting of use value and non-use value, the value as private goods was estimated to be 217 yen for WTP and the value as public goods was estimated at 316 yen. The results of this study have academic significance in that the professional sports teams quantitatively showed the values of public goods as well as private goods, while leaving certain problems in the model. In the future, it will be necessary to develop value categories that match the field of sports science, and the development of a scale for social benefits provided by professional sports teams will also be an issue.

Impact and economic value of agricultural land conversion in sub-urban of Bantul Regency

Increasing the number of populations in urban areas results in increasing the need for shelter and food, while the land area is limited. This has led to a conversion of agricultural land to non-agricultural land, especially in sub-urban areas that directly adjacent to urban areas. This study aimed to identify the impact of agricultural land conversion, and also to estimate the economic value of paddy land loss in sub-urban of Bantul Regency. Data were collected through structured interviews, institutional data, and literature reviews. These data were analyzed in a quantitative descriptive. Most of the paddy fields are converted for home and housing, partially used for economic activities that have higher land rent such as shops, boarding houses, and restaurants. The perceived impact is increasing air temperature, air pollution, also reduced employment opportunities and income from agricultural sector. The total economic value of the direct use obtained from the existence of agricultural land in Bantul sub-urban is IDR 96 806 832 ha–1 yr–1. It is includes the value of rice production of IDR 53 934 540 ha–1 yr–1, the value of employment opportunities is IDR 17 126 688 ha–1 yr–1 and the value of agricultural income is IDR 25 745 604 ha–1 yr–1.

Determining the economic value of daily dry matter intake and associated methane emissions in dairy cattle

Feed represents a substantial proportion of production costs in the dairy industry and is a useful target for improving overall system efficiency and sustainability. The objective of this study was to develop methodology to estimate the economic value for a feed efficiency trait and the associated methane production relevant to Canada. The approach quantifies the level of economic savings achieved by selecting animals that convert consumed feed into product while minimizing the feed energy used for inefficient metabolism, maintenance and digestion. We define a selection criterion trait called Feed Performance (FP) as a 1 kg increase in more efficiently used feed in a first parity lactating cow. The impact of a change in this trait on the total lifetime value of more efficiently used feed via correlated selection responses in other life stages is then quantified. The resulting improved conversion of feed was also applied to determine the resulting reduction in output of emissions (and their relative value based on a national emissions value) under an assumption of constant methane yield, where methane yield is defined as kg methane/kg dry matter intake (DMI). Overall, increasing the FP estimated breeding value by one unit (i.e. 1 kg of more efficiently converted DMI during the cow’s first lactation) translates to a total lifetime saving of 3.23 kg in DMI and 0.055 kg in methane with the economic values of CAD $0.82 and CAD $0.07, respectively. Therefore, the estimated total economic value for FP is CAD $0.89/unit. The proposed model is robust and could also be applied to determine the economic value for feed efficiency traits within a selection index in other production systems and countries.