What Techniques Are Available to Managers to Help Them Assign a Market Value to Specific Resources?
Nonmarket economic valuation is a way to determine the monetary value
of natural and environmental resources not normally traded in a conventional
market.
Excluding nonmarket values when making decisions in an MPA may lead
to inefficient allocation of resources and reduced social welfare. Managers
must consider that there are real economic values associated with both
environmental and natural resources. Estimating these values is critical
to efficient use of resources.
Assigning value to nonmarket resources is one of the greatest challenges
for economists. It is very important, however, as the establishment
of a value for a resource helps justify its need to be protected. Many
tools can help in making these calculations.
How Can Knowing This Help Me?
Knowing the economic value of resources allows managers to
- Better justify the need to protect the resource
- Show the value of the resource over time
- Determine the amount of compensation in the event of damage to the resource
What Are Some Tools I Can Use?
![[Skip Navigation]](/images/pixel.gif){kind=tracking}
