AD ALTA
JOURNAL OF INTERDISCIPLINARY RESEARCH
Inherited
value
economic theory anthropogenic method, because it puts only
human preferences, i.e. evaluation from human view. Therefore
is a process which reveals subjectively-conceived economic
value. According to the concept of mainstream economics is not
evaluated only the nature itself and its wealth, but people's
preferences in relation to changes in state of the environment.
Fig. 1 represents the total economic value that reflects so called
Active Values (exploitable) and Passive Values (unexplainable),
which together form the total economic value.
Figure 1: The total economic value
Source: own processing based data: SEJÁK, J. et al.
Oceňování
pozemků a přírodních zdrojů. Praha: Grada Publishing, 1999.
251 s. ISBN 80-7169-393-6.
Active values are the benefits derived from the current using of
products and services such as wood, berries, fishing, drinking
water and hiking as well. Passive values are intrinsic values of
the environment, which are not associated with the current using
of environmental goods and services, but they are important for
future generations.
The active value consists of the value of direct use, the value of
indirect use and the value of the optional use. The first group
includes industry, agriculture, holiday and tourism, which means
fundamental economic activities that the environment has been
creating conditions for their actual implementation. An example
of indirect use, there are the activities, such as flood control, thus
creating measures to improve coexistence with the natural
influences. The value of the optional use means a discovery of
new using of natural resources (Seják, 1999).
The Passive value means inherited value and existence value.
The inherited value is by literature often referred to as
intergenerational value and also the value of the link. It is the
intention of the present generation to preserve environmental
value for future generations. In appreciating environmental
goods are determining costs and revenues in the long term.
Whether and to what extent in the economy account of the needs
of future generations, it follows from the above discount factor
of time. The higher the discount rate in a given society towards
natural resources applied, the less into account the needs of
future generations and can hardly be considered its development
as sustainable
1
. Existential value is the value which is known to
exist, but has never be used. This includes the very existence of
landscape and natural resources, which is necessary for the
preservation of ecosystems and a necessary condition for the
continuation of life in the form as we know it (Seják, 2002).
The basis of the valuation of environmental goods is by
neoclassical environmental economics determine the total
economic value of the stock of natural capital and the total
economic value of stocks changes. There is therefore the
assessment of the present value of environmental resources and
there is also necessary to assess the damage, respectively loss
amount and quality of the resource
2
.
1
A similar discrepancy exists also within one generation. Willingness to pay is based
on the ability to pay. Willingness of the poorer to pay for conservation of natural
resources will be probably lower than by the wealthier. It is possible this contradiction
resulting from income differences eliminates through the application of a more
equitable tax system.
2
In certain cases, the evaluation can be carried out indirectly through damage to health
and property.
In practical terms, evaluation of natural resources conducts in
these fundamental steps:
1)
Identification of targets for the economy and the
environment.
2)
Identification of key users and ecosystem functions.
3)
Formulation of relations between functions and use.
4)
Use of appropriate evaluation method.
5)
Determination of total economic value.
6)
Analysis possibilities/alternatives for achieving the
objectives.
For the valuation of natural phenomena and goods are used three
main ways - the use of market prices, use of expressed
preferences and use of observational preferences derived from
actual human behavior (Ritschelová, 2006).
2.1 The use of market prices
In the case of using market prices, it is possible use a method of
human capital and market valuation method to physical impacts.
Human capital method estimates the costs, which come into
damage health because of environmental changes
3
.
Method of market valuation of physical impacts monitors the
differences in prices of goods and services, which are due to
physical changes in the environment. Water pollution reduces
the number of fish, air pollution can reduce crop. In these cases,
environmental changes reduce the market value of the outputs.
In other cases environmental changes increase costs eg. cleaning
station from mudflats. These changes always cost someone
money (Seják, 1999).
2.2 The use of expressed preferences
For the expression of preferences a method is used based on a
hypothetical survey of preferences (Contingent Valuation
Method - CVM), which is called by literature as well as
contingent evaluation method or the method of contingent
valuation. It works by the creations of the hypothetical market
for environmental goods. Using a questionnaire is drawn up
willingness of respondents to pay (willingness to pay - WTP) for
the conservation of natural values. There is a process that is
similar to the procedure based on the willingness to accept
(willingness to accept - WTA), which means determining the
lowest amount of compensation that the respondent is willing to
accept in exchange for impaired environment. According to the
theoretical assumptions, both methods of detection should
produce similar results. Although in practice is shown that there
are significant differences among them
4
.
The whole process is divided into three basic stages. First of all,
respondents are acquainted with the issues and relevant
information that are provided to them. The following is a
questionnaire with the question with an open end or a
dichotomous choice of selection. The fundamental question e.g.:
How much are you willing to pay…? is then supplemented by
more specific questions to illustrate the personality of the
respondents. The last phase concerns the evaluation.
This method is often discussed due to the high probability of
distortion of the results. This distortion can be of three kinds:
Information: due to the quality and quantity of information
provided to respondents.
Strategic: respondents can answer their intentionally under-
or overestimate in order to influence the real cost of the
environmental goods. For example effort to reduce ticket
prices to rock cities, reserves, parks, natural swimming
pools etc.
3
The economic costs are estimated from changes in worker productivity. This method
does not reflect the subjective assessment of health, costs of pain and suffering and
other relevant factors.
4
The causes of this result are psychological.
TOTAL ECONOMIC VALUE
Active values
Passive values
Value
of
direct
use
Value
of
indirect
use
Value
of
optional
use
Existence
value
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