Using Ecological Production Theory to Define and Select Environmental Commodities for Nonmarket Valuation

Economic analyses of nature must somehow define the “environmental commodities” to which values are attached. We articulate principles to guide the choice and interpretation of nonmarket commodities. We describe how complex natural systems can be decomposed consistent with “ecological production theory,” which, like conventional production theory, distinguishes between biophysical inputs, process, and outputs. We argue that a systems approach to the decomposition and presentation of natural commodities can inform and possibly improve the validity of nonmarket environmental valuation studies. We raise concerns about interpretation, usefulness, and accuracy of benefit estimates derived without reference to ecological production theory.


Issue Date:
2013-04
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/148395
PURL Identifier:
http://purl.umn.edu/148395
Published in:
Agricultural and Resource Economics Review, Volume 42, Number 1
Page range:
1-32
Total Pages:
32




 Record created 2017-04-01, last modified 2018-01-22

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