Question

Ecosystem commodification is … Select one: a. the "splitting" of an ecosystem or ecosystem service into legally-defined and tradable property rights to specific services or resources. b. is a form of marketisation designed to counteract environmental degradation. c. an approach to human affairs in which the "free market" is given priority and money-mediated relations are seen as the best way to deliver services. d. all of the above.

Which of the following is not a limitation of cost benefit analysis? Select one: a. measuring costs and benefits can be difficult as they can be hard to monetise b. net benefits can be difficult to measure in the presence of other economic distortions such as taxes or government regulation c. it may not be possible or be desirable to measure and quantify certain environmental values d. all of the above

Environmental valuation … Select one: a. allows for ‘rational’ management of environmental problems b. helps manage the complexity of environmental issues c. can aid environmental protection d. can lead to the commodification of nature e. b and c f. c and d g a, b, c and d

The difference between ‘revealed preference’ and ‘stated preference’ valuation approaches is that ‘revealed preference’ methods focus on consumers’ actual spending habits whereas ‘stated preference’ just ascertains people’s hypothetical willingness to pay. Select one: a. True b. False

The value we place on an asset today, which might be exploited some time in the future, is called ... Select one: a. Existence value b. Bequest value c. Future cash value d. Option value e. Future market value

Answer 1

Ans: (d) all of the above.

Reason - ecosystem commodification means the ways in which natural entities are made exchangeable through the market. It includes following elements -:

• Assigning legal rights and property rights.
• Creating a form of market to counter environmental degradation.
• Monetising the value of commodities involved.

Ans: (d) all of the above.

Reason -: Every option is a limitation of cost-benefit analysis as some factors are qualitative and hence difficult to quantify.

Ans : (g) a,b,c and d.

Reason-: Environmental valuation refers to quantifying the costs and benefits associated with use of environmental resources. It helps in aiding environmental protection , rational management , manage complexity and commodification of environment by measuring the damages done and benefit derived due to human activities.

Ans : TRUE.

Reason-: Revealed preferences study the actual behaviour and stated preferences survey the willingness to pay in hypothetical situations.

Ans: (e) Future market value.