Economic and philosophical approaches to valuing environmental damage
This chapter considers various environmental damage valuation techniques that have emerged from the assessment of the different regimes in the previous chapters, as well as others that environmental economists and philosophers have developed. In many cases, judges and arbitrators have relied exclusively on what economists call direct use values. This value has significant blind spots and often fails to account for environmental damage in its entirety, such as a diminution in carbon sequestration or of watershed protection offered by the natural environment. Alternatively, many valuation approaches can have a sub-optimal deterrence effect. In this chapter, more comprehensive damage assessment and valuation methods, such as habitat equivalency analyses or ecosystem services approaches, are also explored.