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7. BCA - Benefits Benefits = willingness to pay! Benefit from an environmental program Sometimes WTP for amenities = damages avoided Damage functions Cost.

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Presentation on theme: "7. BCA - Benefits Benefits = willingness to pay! Benefit from an environmental program Sometimes WTP for amenities = damages avoided Damage functions Cost."— Presentation transcript:

1 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

2 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. T - 2

3 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. T - 3

4 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. T - 4

5 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. T - 5

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