Valuation of Environmental Goods

Valuation of environmental goods refers to the process of estimating the economic value of natural resources and ecosystems, such as clean air, water, biodiversity, and recreational spaces. This valuation helps to quantify benefits that may not have a direct market price, allowing policymakers and businesses to understand the importance of preserving these resources. Methods can include assessing people’s willingness to pay for cleaner environments, calculating the costs of environmental degradation, or using economic models to measure the benefits provided by ecosystems. Ultimately, this helps guide sustainable decision-making and resource management.