Market vs. Non-Market Valuation

Market valuation refers to the process of determining the worth of a good or service based on its price in the marketplace, often influenced by supply and demand. Non-market valuation, on the other hand, evaluates items or services that don't have a clear market price, such as environmental benefits, public health, or cultural assets. This can involve methods like surveys or assessing the value of benefits provided to society, even if they aren't bought and sold. Understanding these concepts helps us value resources and decisions beyond mere financial transactions.