ABSTRACT
Conventional welfare measures don’t change with the differences in these linkages. General equilibrium measures of Willingness to Pay (WTP) (considering both the environmental quality changes and the relative price effects) and partial equilibrium measures considering only the effects of the policy on the relative prices of market goods do not signal its potential importance. Similarly the marginal values (virtual prices) of the use related environmental services also fail to signal the importance of feedbacks for the non-use contribution (designated here as the composite resource). Thus the structure of these connections matters.
