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Valuing Increments and Decrements in Natural Resource Service Flows
Author(s) -
Brookshire David S.,
Randall Alan,
Stoll John R.
Publication year - 1980
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240202
Subject(s) - valuation (finance) , microeconomics , economics , natural resource , consumption (sociology) , value (mathematics) , economic surplus , production (economics) , service (business) , margin (machine learning) , econometrics , mathematical economics , computer science , economy , market economy , ecology , social science , finance , machine learning , sociology , welfare , biology
Abstract A general model for valuation of changes in natural resource service flows, entirely consistent with Hicksian concepts of consumer surplus, is developed. It is a total value model, applicable to all classes of goods: divisible and indivisible in production, divisible and indivisible in consumption, exclusive and nonexclusive. The standard result of partial equilibrium microeconomics—price is equal to value at the margin‐may be derived as a special case from this model. An empirical application involving the valuation of changes in the provision of wildlife‐related amenities is presented.