ABSTRACT
This chapter addresses the most challenging and critically important subject in environmental economics. The challenge arises from the arduous conceptual and methodological tasks involved in
imputing values to many aspects of the environmental services that lack observable market prices. Despite this, as presented in some detail throughout this chapter, in recent years economists have been making
After reading this chapter you will be familiar with the following:
■ How the environmental-damage function actually represents the demand function for improved environmental quality or avoided damage cost.
