Valuation of complex environmental goods: A multi-criteria approach
DOI:
https://doi.org/10.7201/earn.2007.14.05Keywords:
Complex environmental goods, heterogeneity, attribute non-linearity, multiattributeutility, valuationAbstract
Economic valuation of complex environmental goods has several issues still opened to debate. This paper focuses on two of these aspects; linearity of attributes in the valuation function and individual utility function heterogeneity. A methodological approach based on Multi-attribute Utility Theory is proposed which allows to contrast the impact of these concerns on environmental good valuation. We apply the proposed methodology to value a protected natural in the province of Granada (Spain). From the results obtained we can conclude that attribute non-linearity and individual utility function’s heterogeneity are relevant aspects to be taken into account in environmental valuation.
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