7. BCA - Benefits Benefits = willingness to pay! Benefit from an environmental program Sometimes WTP for amenities = damages avoided Damage functions Cost to Human Health Added Cost to Production / Materials Indirect methods to estimate WTP Health costs averted Value of Human Life Hedonic values / Travel cost Direct methods to estimate WTP Contingent Valuation WTP vs. WTA
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. T - 2
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. T - 3
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. T - 4
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. T - 5