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The value of natural environments in the extraction of finite energy resources: A method of valuation
Author(s) -
Thampapillai Dodo J.
Publication year - 1988
Publication title -
international journal of energy research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.808
H-Index - 95
eISSN - 1099-114X
pISSN - 0363-907X
DOI - 10.1002/er.4440120316
Subject(s) - valuation (finance) , natural resource , activity based costing , environmental economics , natural resource economics , natural gas , value (mathematics) , energy resources , operations research , economics , computer science , engineering , waste management , ecology , accounting , finance , biology , machine learning
Abstract The value of the natural environment is invariably excluded from the costing of finite energy resources due to difficulties associated with noncommensurability. This paper illustrates a method of valuation for strip mining coal in a virgin natural environment. The method is based on the principles of irreversibility and opportunity costs. Although the values derived represent a bottom threshold, their inclusion would prompt an improvement in the allocation of scarce resources for the development of energy technologies.