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

Published online by Cambridge University Press:  15 September 2016

James Boyd  and
Alan Krupnick
James Boyd*
Affiliation:
Resources for the Future
Alan Krupnick
Affiliation:
Resources for the Future
*
Correspondence: James Boyd ▪ Resources for the Future ▪ 1616 P Street NW ▪ Washington, DC 20036 ▪ Phone 202.328.5013 ▪ Email boyd@rff.org.
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Abstract

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.

Keywords

commoditiesendpointsnonmarket valuationrevealed preferencestated preference
Type
Invited Papers
Information
Agricultural and Resource Economics Review , Volume 42 , Issue 1 , April 2013 , pp. 1 - 32
Copyright
Copyright © 2013 Northeastern Agricultural and Resource Economics Association 

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