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Non-use Value
Non-use value is the value that people assign to economic goods (including public goods) even if they never have and never will use it. It is distinguished from use value, which people derive from direct use of the good. The concept is most commonly applied to the value of natural and built resources. Non-use value as a category may include: * " option value" – the value placed on individual willingness to pay for maintaining an asset or resource even if there is little or no likelihood of the individual actually ever using it, occurring because of uncertainty about future supply (the continued existence of the asset) and potential future demand (the possibility that it may someday be used). * " bequest value" – values placed on individual willingness to pay for maintaining or preserving an asset or resource that has no use now, so that it is available for future generations. *" Existence value" – an unusual and somewhat controversial class of economic value, reflecting the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Goods
In economics, a public good (also referred to as a social good or collective good)Oakland, W. H. (1987). Theory of public goods. In Handbook of public economics (Vol. 2, pp. 485–535). Elsevier. is a goods, commodity, product or service that is both excludable, non-excludable and rivalry (economics), non-rivalrous and which is typically provided by a government and paid for through taxation. Use by one person neither prevents access by other people, nor does it reduce availability to others, so the good can be used simultaneously by more than one person. This is in contrast to a Common good (economics), common good, such as wild fish stocks in the ocean, which is non-excludable but rivalrous to a certain degree. If too many fish were harvested, the stocks would deplete, limiting the access of fish for others. A public good must be valuable to more than one user, otherwise, its simultaneous availability to more than one person would be economically irrelevant. Capital goods ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Use Value
Use value () or value in use is a concept in classical political economy and Marxist economics. It refers to the tangible features of a commodity (a tradeable object) which can satisfy some human requirement, want or need, or which serves a useful purpose. For Karl Marx's critique of political economy, any commodity has a value and a use-value — the former manifestly appearing as exchange-value in any exchange-relation in which bearers of commodities mutually alienate and appropriate each-others commodities on the market, it's foremost the proportion in which any commodity is exchangeable for any commodities, it's form as the money form within money economies. Marx acknowledges that commodities being traded also have a ''general utility'', implied by the fact that people want them, but he argues that this by itself says nothing about the specific character of the economy in which they are produced and sold. Origin of the concept The concepts of value, use value, utility, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Option Value
Option or Options may refer to: Computing *Option key, a key on Apple computer keyboards * Option type, a polymorphic data type in programming languages * Command-line option, an optional parameter to a command *OPTIONS, an HTTP request method Literature * ''Options'' (novel), a novel by Robert Sheckley * ''Option'' (car magazine), a Japanese car magazine * ''Option'' (music magazine), a defunct American music magazine *"Options", a 1979 story by John Varley Legal rights *Option (aircraft purchasing) * South Tyrol Option Agreement, a forced resettling contract between fascist Italy and Nazi Germany regarding the German-speaking inhabitants of South Tyrol *Option (filmmaking), a contractual agreement between a film producer and a writer, in which the producer obtains the right to buy a screenplay from the writer before a certain date. *Option (finance), an instrument that conveys the right, but not the obligation, to engage in a future transaction (for example, on some und ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bequest Value
Bequest value, in economics, is the Value (economics), value of satisfaction from preserving a natural environment or a historic environment, in other words natural heritage or cultural heritage for future generations. It is often used when estimating the value of an environmental service or good. Together with the existence value, it makes up the non-use value of such an environmental service or good. References Environmental economics {{econ-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Future Generations
Future generations are Cohort (statistics), cohorts of hypothetical people not yet born. Future generations are contrasted with current and past generations and evoked in order to encourage thinking about intergenerational equity. The Moral agency#Distinction between moral agency and moral patienthood, moral patienthood of future generations has been argued for extensively among philosophers, and is thought of as an important, neglected cause by the effective altruism community. The term is often used in describing the conservation or preservation of cultural heritage or natural heritage. The sustainability and climate movements have adopted the concept as a tool for enshrining principles of long-term thinking into law. The concept is often connected to indigenous thinking as a principle for ecological action, such as the Seven generation sustainability, seven generation concept attributed to Iroquois tradition. Sources The term refers to the impact which the currently living g ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Existence Value
Existence values are a class of economic value, reflecting the benefit people receive from knowing that a particular environmental resource, such as Antarctica, the Grand Canyon, endangered species, or any other organism or thing exists. Existence value is a prominent example of non-use value, as they do not require that utility be derived from direct use of the resource: the utility comes from simply knowing the resource exists. The idea was first introduced by John V. Krutilla in his essay "Conservation Reconsidered."John Krutilla: ''Conservation Reconsidered''. In: The American Economic Review, Volume 57, Issue 4, Sep. 1967, pp. 777-786 As the Canadian Privy Council explains, existence value is "A concept used to refer to the intrinsic value of some asset, normally natural/environmental. It is the value of the benefits derived from the asset's existence alone. For example, a tree can be valued in a number of ways, including its use value (as lumber), an existence value (simpl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost Benefit Analysis
Cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production. More generalized in the field of economics, cost is a metric that is totaling up as a result of a process or as a differential for the result of a decision. Hence cost is the metric used in the standard modeling paradigm applied to economic processes. Costs (pl.) are often further described based on their timing or their applicability. Types of accountin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Burton Weisbrod
Burton A. Weisbrod (born February 13, 1931, in Chicago, Illinois) is an American economist who pioneered the theory of option value, and the theory of why voluntary nonprofit organizations exist. He also developed the methodology for valuing voluntary labor. He advanced methods for benefit-cost analysis of public policy by recognizing the roles of externality effects and collective public goods in program evaluation. He applied those methods to the fields of education, health care, poverty, public interest law, and nonprofit organization. Over a career of fifty years, he published 16 books and over 200 scholarly articles. He is currently the Cardiss Collins Professor of Economics Emeritus and a Fellow of the Institute for Policy Research at Northwestern University. Contributions to economics * Option Value – Weisbrod is acknowledged to have developed the concept and coined the term option value as used in welfare economics to represent a portion of total economic val ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revealed Preference
Revealed preference theory, pioneered by economist Paul Anthony Samuelson in 1938, is a method of analyzing choices made by individuals, mostly used for comparing the influence of policies on consumer behavior. Revealed preference models assume that the preferences of consumers can be revealed by their purchasing habits. Revealed preference theory arose because existing theories of consumer demand were based on a diminishing marginal rate of substitution (MRS). This diminishing MRS relied on the assumption that consumers make consumption decisions to maximise their utility. While utility maximisation was not a controversial assumption, the underlying utility functions could not be measured with great certainty. Revealed preference theory was a means to reconcile demand theory by defining utility functions by observing behaviour. Therefore, revealed preference is a way to infer preferences between available choices. It contrasts with attempts to directly measure preferences or u ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contingent Valuation
Contingent valuation is a survey-based economic technique for the valuation of non- market resources, such as environmental preservation or the impact of externalities like pollution. While these resources do give people utility, certain aspects of them do not have a market price as they are not directly sold – for example, people receive benefit from a beautiful view of a mountain, but it would be tough to value using price-based models. Contingent valuation surveys are one technique which is used to measure these aspects. Contingent valuation is often referred to as a ''stated preference'' model, in contrast to a price-based '' revealed preference'' model. Both models are utility-based. Typically the survey asks how much money people would be willing to pay (or willing to accept) to maintain the existence of (or be compensated for the loss of) an environmental feature, such as biodiversity. History Contingent valuation surveys were first proposed in theory by S.V. Cir ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Total Economic Value
Total economic value (TEV) is a concept in cost–benefit analysis that refers to the value derived by people from a natural resource, a man-made heritage resource or an infrastructure system, compared to not having it. It appears in environmental economics as an aggregation of the (main function based) values provided by a given ecosystem. Value classification The value of an ecosystem can be distinguished as: #Use value — Can be split into Direct and Indirect use values: #* Direct use value: Obtained through a removable product in nature (i.e., timber, fish, water). #* Indirect use value: Obtained through a non-removable product in nature (i.e., sunset, waterfall). #Non-use value — Values for existence of the natural resource. For example, knowing that tigers are in the wild, even though you may never see them. #Option value: Placed on the potential future ability to use a resource even though it is not currently used and the likelihood of future use is very low. This ref ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
