Giani Gradinaru

Environment Benefits Quantification Through Statistical Indicators

In the absence of markets for evaluating environment benefits, alternative methodologies must be found to measure them. Indirect estimation allows a value to be assigned to an environmental good by using data about the real choices made by individuals in related markets (markets of substitution). In the absence of the market data, the availability to pay (AP) can be estimated with the help of some substituting goods sold on a market. The behavior of individuals on the related markets reveals the value they assign to the environmental improvements. For example, if pollution levels influence the utilization of a park, the individual AP to travel to another area may be used in estimating damage avoidance for that park. In this chapter, enviro-statistical indicators are developed, which are estimated by applying techniques used to evaluate the need for recreation, preventive behaviour, and cost of illness.

A Business Perspective of a Natural Capital Restoration

Abstract The interest for investment with “green” outcomes is increasing worldwide. Its driver could be considered the more and more appealing environmental discourse, but also the development of various economic mechanisms which facilitate the reduction of transaction costs and the emergence of new market opportunities. Some investment funds reached the volume and rate of return that respect the conditions of large institutional investors. Such funds are related to forestry, depending on two important and increasing markets: certified wood products and carbon certificates. Other “green” investment opportunities are biodiversity credits, ecotourism payments, and renewable energy. Supporting natural ecosystems is not new in environmental protection. Nevertheless, looking to this from a business perspective is a recent development resulting from the increased importance given to environmental economics and how it creates an appropriate framework for more effective and prompt action toward the preservation of life supporting systems of the Earth.