Principios de la Gestión de Calidad

When valuing non-market environmental goods and services, the Total Economic Value (TEV) is used. This is defined as the sum of the direct (DV), indirect (IV) and passive values (PV) and is usually expressed as DV+IV+PV= TEV. The TEV is usually characterised by the change in well- being from a policy or project (Bateman et al., 2002; Christie et al., 2004; McDonald & Patterson, 2008). TEV is recognised as not being straightforward and free from debate. The success of TEV in practice has been based on several legal cases, most notably the Exxon Valdez Alaskan oil spill disaster; however, questions are often raised about the ability to capture the actual value of natural resources. The components that make up TEV, from a biodiversity perspective, are shown in Figure1.

25 Figure1 Biodiversity Value

Source: Biological Diversity Advisory Committee (2005, p. 5)

The key underlying concept of TEV is that the total is the sum across all categories of values, such as use and non-use values, which is regularly referred to and supported in literature (Ansink, Hein, & Hasund, 2008; Christie et al., 2004; Elmqvist et al., 2010; Farber, Costanza, & Wilson, 2002; McDonald & Patterson, 2008; Nijkamp et al., 2008; Patterson & Cole, 1999a; Pearce et al., 2002).

The "Value" of Biodiversity

Use Value

Indirect Use Value

Benefits

flood control

Storm protection

CO2_/O2 _stablisation

Ecological functions that support economic

activity elsewhere

Direct Use value

Outputs

fish

wood

recreation

meat

Optional and Quasi Values

Uncertainty over future demand or

availabilty

Non-Use Value

Existence, Altruist and Bequest Values

Knowledge of continued existence or

that others will enjoy benefits

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Within biological diversity, both use and non-use values are important when valuing the welfare changes of individuals that form the concept of TEV. The TEV of a species or habitat is argued by Nijkamp et al. (2008) as originating from a blend of use and non-use values as shown by the different categories in Figure1 (indirect use value, direct use value, optional and quasi value and existence, altruist and bequest values). Coupled to this are the reasons why individuals perceive certain aspects of an environment as important, which is evident in the psychological values used to establish a supposed quality or view of an environment (Nijkamp et al., 2008). Overall it is argued by Jones-Walters & Mulder (2009), that the TEV is fundamentally difficult to account for when accounting for the economic value of biodiversity in a dynamic landscape.

The view that value is part of the ecological function of biodiversity fits into two fundamental categories of value; production value (use value) or individual or societal value (non-use value). Production values are seen as being part of the production and cost functions of market-allocated goods, such as, the use of ecosystems for forestry and agriculture. Individual values (non-use value) of biodiversity, are part of the individual utility, such as, the recreational or aesthetic values biodiversity provides, and is discussed in the next section (Fromm, 2000).

The ecological importance of biodiversity, as a component of the TEV, is important due to specific relationships within biodiversity that effect the TEV. Fromm (2000) describes these relationships as:

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x the relationships of biotic and abiotic components of an ecosystem

x the relationships between the ecological functions of ecosystems and

the interaction with the ecosystem services to human welfare.

To ensure that the economic values of the environment can be accounted for, different types of valuation meanings have been developed to capture economic values. For example, the optional value is used to describe the future potential use of ecosystem services or biodiversity, where uncertainty exists regarding its preservation. Existence values are frequently referred to as non-use values, where an individual derives value from simply knowing that the biodiversity exists or, that other individuals have access to it. Closely associated with this is the bequest values, where there are concerns shown for inter-generational and altruistic values that are associated with inter-generational wealth (Pascual et al., 2010). The methods for valuing non-market environmental goods and services are progressively being refined and are described in the next section.

Non-use or passive use values are seen as being anthropocentric values, as their existence depends on society valuing a resource. Where biodiversity is concerned, these mirror the notion that society derives value from knowing that biodiversity exists, and that it is being protected so that future generations can have access to it or know of its existence (Patterson & Cole, 1999a). An example of this is the preservation of a threatened species in a conservation area, affecting the welfare of individuals living a great distance from that conservation site. These individuals can derive satisfaction from knowing that there has been an improvement in biodiversity for both

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present and future generations, even if they will not directly benefit from it (Nijkamp et al., 2008).

Non-use values relate to markets that do not routinely exist. These values relate to moral, religious, cultural, heritage and other values, such as, the value of a particular wildlife species or habitat. Non-use values of biodiversity are viewed as being difficult to capture and are the subject of controversies concerning their economic importance (Christie et al., 2004; Salles, 2011).

2.3

Valuation Techniques for Non-Market Environmental