Economic valuation of environmental impacts

Abstract

Using a study conducted for UNDP (United Nations Development Program) in Indonesia as a base, the data and methodology requirements for economic valuation of environmental impacts are investigated. Such valuation procedures are instrumental not only to project appraisal but also to other areas of policy analysis vital to designing environmentally sustainable development approaches in developing countries.In addition to adequate biophysical and resource stock assessment, the data and methodology requirements include proper accounting and valuing of environmental functions, sufficient flexibility of data to reflect changes in key resource systems and zones, and high quality standards. Although specifying the exact requirements of this data base is difficult unless choices are made concerning its ultimate purpose, the approach adopted serves as a useful guideline to the foundation of any such data base. © 1986 Taylor & Francis Group, LLC.