ABSTRACT
This chapter discusses some of the theoretical underpinnings of existence and bequest demand and values. Systematic thinking about the nature of existence value may help economists to contribute to the decision-making process which determines the fate of natural environments. Part of the value of preserving natural environments is occasionally attributed to the bequest motive. The notion of existence value developed in the context of large and perhaps irreversible changes in natural environments. Many researchers felt that existence value as a concept applied to potentially irreversible reductions in a resource. Representative use of existence value would be the willingness to pay for the existence of a resource without the prospect of using the resource. In many respects, existence goods do not differ from the general class of public resources: resources that provide existence value enter many individuals' preference functions simultaneously, without detracting from the availability or value of the resource to others.
