Environment Benefits Quantification Through Statistical Indicators

In the absence of markets for evaluating environment benefits, alternative methodologies must be found to measure them. Indirect estimation allows a value to be assigned to an environmental good by using data about the real choices made by individuals in related markets (markets of substitution). In the absence of the market data, the availability to pay (AP) can be estimated with the help of some substituting goods sold on a market. The behavior of individuals on the related markets reveals the value they assign to the environmental improvements. For example, if pollution levels influence the utilization of a park, the individual AP to travel to another area may be used in estimating damage avoidance for that park. In this chapter, enviro-statistical indicators are developed, which are estimated by applying techniques used to evaluate the need for recreation, preventive behaviour, and cost of illness.