By Per-Olov Johansson

This e-book is a sophisticated textual content in utilized welfare economics and its software to environmental economics. the writer is going some distance past the prevailing literature, deriving units of principles that may be used to evaluate the social advantages and prices of personal and public area initiatives that have an effect on the surroundings. Drawing on a few empirical illustrations, this booklet could be of curiosity not just to these taking complicated classes in environmental economics, welfare economics, and public economics, but additionally as a reference for these project venture reviews in executive and enterprise.

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Sample text

In order to make the interviewees familiar with the considered hypothetical change in the environment, they were asked to estimate the number of days per year which are as hazy as pictures A and B, respectively. Then the following question was asked. 48 Valuing public goods It is impossible to eradicate all of the fog since part of it is caused by natural conditions. However a reduction in the discharge of industrial waste would undoubtedly lead to much cleaner air. A reduction in the discharge of industrial waste may befinancedby the company itself, the local population, society in general or by all three categories on a joint basis.

The following describes the procedure adopted in a Norwegian study aimed at determining the willingness to pay for improved air quality in a heavily polluted industrial area. 1 More than 1,000 randomly chosen people out of 68,000 adults living in the area were interviewed. The interviews were based upon pictures depicting visibility ranges. Picture A shows the selected area on a day with heavy haze; roughly every tenth day is that hazy. Picture B depicts the same area on an average day. In order to make the interviewees familiar with the considered hypothetical change in the environment, they were asked to estimate the number of days per year which are as hazy as pictures A and B, respectively.

In most empirical applications, the central valuation question is much more detailed than the above examples suggest. The following describes the procedure adopted in a Norwegian study aimed at determining the willingness to pay for improved air quality in a heavily polluted industrial area. 1 More than 1,000 randomly chosen people out of 68,000 adults living in the area were interviewed. The interviews were based upon pictures depicting visibility ranges. Picture A shows the selected area on a day with heavy haze; roughly every tenth day is that hazy.

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