ABSTRACT
This chapter deals with valuation at the microeconomic level and considers its valuation at the macroeconomic level. It presents a concise review of the various valuation methods that are pertinent to KN. Most of the applications that have been reported in this category attempt to value KN as a good that is consumed. Consider an example where the value of KN was estimated for natural areas bearing coal deposits that were to be strip-mined. The benefits of improving KN by reducing pollution have been estimated in terms of savings in health and medical expenses. The wide variations in expressed values and the inconsistencies between hypothetical transactions and economic commitments or inconsistencies that are observed between willingness to pay and willingness to accept render the method inefficient. The success of methods involving production functions and dose-responses will depend on the availability of data on KN, at least on a cross-sectional basis.
