Economic valuation for equivalency analysis

Abstract

Economic analysis contributes to the implementation of the Environmental Liability Directive (ELD) through the estimation of changes in the value (in monetary terms) of damaged resources from an incident. As noted in Annex II of the ELD, resource-to-resource and service-to-service approaches should be considered first (paragraph 1.2.2), however, if these methods are not possible or appropriate, then alternative valuation techniques shall be used (paragraph 1.2.3). This chapter provides an overview of the concept of economic value, how it can be estimated, and how it can help in determining compensation for damages to resources and services covered by the ELD.