Valuation

Environmental and cultural resources contribute to human wellbeing and hence have economic value. Valuation methods entail collecting quantitative evidence in this regard which is essential for efficient decision-making, for example:

  • Proving ‘value for money’ for environmental investments where the benefits are assumed to be intangible such as conservation of biodiversity or informal recreation – where valuation can show that these benefits are in fact tangible;
  • Choosing amongst competing investments with different environmental impacts (for example, between conservation and development options);
  • Prioritising amongst different environmental resources or challenges for environmental policy;
  • Setting the correct level of tax on a pollutant; and
  • Setting prices for environmental resources, such as water pricing or entry to a recreational site.

    • Evidence is gathered either by giving individuals the chance to state their preferences for these resources (contingent valuation and choice modelling) or by observing their behaviour in markets related to environmental resources (using market prices and travel cost and hedonic pricing). Both approaches involve understanding how people trade-off money with changes in the quality and quantity of environmental and cultural resources.

    Our core team is highly trained and experienced in designing the appropriate valuation approach for each decision-making context. Our associates are at the forefront of academic research in this area, and so our projects benefit from the latest academic developments.

    We conduct valuation studies for public and private sector clients in both developed and developing countries in a wide variety of sectors and environmental media:

  • water resources and wastewater management
  • informal recreation and tourism
  • energy generation and air quality
  • transport and landscape
  • libraries and archives
  • built heritage
  • input to the preparation of London’s bid for Summer Olympics 2012
  • road and rail noise and vibration
  • new housing and landscape
  • environmental and health impacts of pesticide use

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    We also provide databases for our clients informing them of the economic value evidence from literature and use of this evidence in decision-making (e.g. in water quality, recreation and flood risk management contexts).

    For specific examples of our work in this area please visit our projects page.

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