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In: Economics

In environmental valuation, Total Willingness to Pay is made of the following values: a.) use value...

In environmental valuation, Total Willingness to Pay is made of the following values:

a.) use value + option value + nonuse value

b.) use value + judgement value + nonuse value

c.) use value only

d.) use value + nonuse value

e.) use value + option value

Solutions

Expert Solution

Option A.

  • In environmental valuation, total willingness to pay is made of use value + option value + nonuse value.
  • Use value shows the amount any individual may pay for using any resource of an environment.
  • Option value refers to the amount any individual may pay for any resource of an environment in future.
  • Nonuse value refers to the amount any individual may pay for any environmental resource which he/she may never use anytime at present or in future.

Rahul Sunny answered 2 years ago
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