Ralph C. d'Arge

The value of the world's ecosystem services and natural capital

The services of ecological systems and the natural capital stocks that produce them are critical to the functioning of the Earths life-support system. They contribute to human welfare, both directly and indirectly, and therefore represent part of the total economic value of the planet. We have estimated the current economic value of 17 ecosystem services for 16 biomes, based on published studies and a few original calculations. For the entire biosphere, the value (most of which is outside the market) is estimated to be in the range of US

An experiment on the economic value of visibility

16-54 trillion (1012) per year, with an average of US

Valuing Environmental Commodities: Some Recent Experiments

33 trillion per year. Because of the nature of the uncertainties, this must be considered a minimum estimate. Global gross national product total is around US

The greenhouse effect and intergenerational transfer

18 trillion per year.

The Value of the Worlds Ecosystem Services and Natural Capital

Abstract This paper reports on the development and application of an iterative bidding technique to examine proposed visibility reductions in the Four Corners Region of the southwest United States. The iterative bidding technique is a method to elicit honest bids for “goods” not priced in formal markets. Four issues associated with direct revelation of preferences for environmental goods are explored: (1) the establishment of linkages between the physical parameters of visibility and representation of the “good” called visibility to individuals for valuation purposes; (2) a systematic test for both observed and induced biases associated with the interative bidding technique; (3) replication of the results of previous experiments; and (4) reporting of empirical divergences between compensating and equivalent surplus measures of consumer surplus.

Van den Belt M

I compare the price elasticity of economic and political preferences. My central hypothesis is that willingness to pay, whether expressed verbally or through cash transactions, is more price-elastic for economic consumption goods than for public goods. I ...

Carbon Dioxide and Intergenerational Choice

Abstract The scientific basis for understanding the economic issues involved in the greenhouse effect is outlined. Four important aspects of the problem are identified and discussed: irreversibility, international and institutional constraints, uncertainty and intergenerational equity. Attention is focused upon the intertemporal choice problem. A model describing the potential for intergenerational transfers under the uncertainty of climatic change due to fossil fuel combustion is presented. We conclude intergenerational compensation can be achieved by investment in capital or technology, or by bequest, and is ethically required regardless of any other action.