Premium
Valuing the Multidimensional Impacts of Environmental Policy: Theory and Methods
Author(s) -
Hoehn John P.
Publication year - 1991
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 - 10.2307/1242713
Subject(s) - complementarity (molecular biology) , substitution (logic) , environmental policy , economics , econometrics , environmental economics , computer science , genetics , biology , programming language
A theoretically consistent framework is developed for valuing the multidimensional impacts of environmental policy. Conventional benefit estimates are shown to be biased because of the presence of substitution and complementarity effects in valuing policy impacts. Procedures are developed for implementing a valid framework. Consistent with theory, empirical results indicate significant substitution effects in valuing environmental conditions across different geographic regions.