Transcript Price and Value

Price and Value in Env. Law:
What’s a Polar Bear Worth?
Can you find a market price?
Two kinds of value:
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Use Value
Marketed
commodities (timber
from forests, food
fish)
Nonmarketed
commodities (hiking)
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Nonuse Values
Option value
Existence value
Bequest value
Establishing Use Values
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Market price
Appraisal
Nonmarket methodologies (e.g.,
contingent valuation)
Option Value (nonuse)
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“I’m not a current user, but I might want to
use it someday.”
Options can have market value (stocks,
real estate) but generally don’t for
nonconsumptive uses
Existence Value (nonuse)
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“I’m not using it, I’m not going to use it, but
just knowing it’s there makes me feel
better.”
Existence has some social value (e.g.,
endangered species), but there is no
market for it (except contributions to enviro
organizations?)
Bequest Value (nonuse)
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“I don’t use it, I won’t use it, and I don’t
personally care whether it’s there—but I’d
like to pass it on to future generations.”
Property law suggests that we do favor at
least some bequest values, but there are
no markets.
Missing from these definitions:
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Biocentric value (e.g., “animal rights”)
Ecosystem services
SO, WHAT IS THE VALUE OF
POLAR BEARS?