ABSTRACT
As for growth in per capita income in the absence of population growth, the increase in the usage of such newly created assets is less certain. For example, it may be the case that very few people will demand more park visits in response to a continuing rise in their incomes. Nevertheless, even if a person pays no more visits to a national park as he becomes richer, the value he places on the same number of visits will ‘normally’ – that is, if his income (or welfare) effect is positive – increase over time. This is not because his annual visits to the national park necessarily provide him with more utility as he becomes richer, but simply because the maximum sum he is prepared to pay for the same number of visits is higher when his real income is higher. Making our calculations on the basis of constant money prices over time, any rise in the value of benefits over time for all such reasons must be entered into the calculations.
