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Abstract
Threshold Value Analysis (TVA) may be a useful input into natural resource decision
making when non-market values are involved. The decision rule under a TVA is to
protect a natural resource if the (non-marketed and unquantified) benefits so arising
are deemed to be greater than a threshold value defined by the (marketed and
quantified) developmental benefits foregone. In this paper, threshold values are
calculated for a range of forest protection options being considered under the
Regional Forestry Agreements being negotiated in New South Wales. A static
analysis is first undertaken. This is then enhanced by the incorporation of factors that
affect the alternative streams of value through time. Extensive sensitivity testing to
demonstrate the impact of assumption variations is reported. To put into context the
threshold values so calculated, the benefit transfer approach is used to provide
estimates of forest protection values.