Total Economic Value
Encyclopedia
Total economic value appears in environmental economics
as an aggregation of the main function based values provided by a given ecosystem
. Those include use and non-use values.
Use Value – Direct: Obtained through a removable product in nature (i.e. timber, fish, water).
Use Value – Indirect: Obtained through a non-removable product in nature (i.e. sunset, waterfall).
Option Value: Placed on the future ability to use the environment. This reflects the willingness to preserve an option for potential future use.
Non-Use Value: Placed on a resource that will never be used, otherwise known as existence value or bequest value
.
Environmental economics
Environmental economics is a subfield of economics concerned with environmental issues. Quoting from the National Bureau of Economic Research Environmental Economics program:...
as an aggregation of the main function based values provided by a given ecosystem
Ecosystem
An ecosystem is a biological environment consisting of all the organisms living in a particular area, as well as all the nonliving , physical components of the environment with which the organisms interact, such as air, soil, water and sunlight....
. Those include use and non-use values.
Use Value – Direct: Obtained through a removable product in nature (i.e. timber, fish, water).
Use Value – Indirect: Obtained through a non-removable product in nature (i.e. sunset, waterfall).
Option Value: Placed on the future ability to use the environment. This reflects the willingness to preserve an option for potential future use.
Non-Use Value: Placed on a resource that will never be used, otherwise known as existence value or bequest value
Bequest value
Bequest Value, in economics, is the value of satisfaction from preserving a natural environment or a historic environment, in other words natural heritage or cultural heritage for future generations....
.