Valuation of Priceless Resources and Impacts

This lecture explores the reasons for putting a price on environmental and human impacts, as well as non-traded natural resources. It covers applications like cost-benefit analysis, true costing, and sustainability indicators. The instructor discusses the challenges and benefits of valuing natural resources, the principles of impacts and values, and the different components of total economic value. Various assessment methods, such as damage functions and production functions, are explained with examples related to traffic congestion costs and air pollution impacts on buildings. The lecture also delves into the limitations of these methods and the importance of considering individual preferences in assessing environmental impacts.