Valuation methods: Principles and Applications

This lecture by the instructor covers the principles and applications of valuation methods in environmental economics. It starts by introducing the Total Economic Value (TEV) concept, distinguishing between direct, indirect, option, and non-use values. The lecture then delves into the Damage Function Method, providing examples of assessing costs related to traffic congestion and air pollution. Additionally, it explores the Production Function Method, showcasing how ecosystem services and agricultural output can be valued. The limitations of the Damage Function Method are also discussed. Through various examples and exercises, the lecture illustrates how economic valuation techniques can be applied to assess environmental impacts and resource values.