question archive Choose two of the following methods in valuing impacts using indirect market methods and describe each
Choose two of the following methods in valuing impacts using indirect market methods and describe each
Subject:EconomicsPrice:2.89 Bought3
Choose two of the following methods in valuing impacts using indirect market methods and describe each.
a. Market Analogy Method
b. Trade-off Method
c. Intermediate Good Method
d. Asset Valuation Method
e. Defensive Expenditures Approach
f. Hedonic Price Method
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Trade-off Method
The trade-off method is typically used to evaluate the value of public goods. Since public goods are available for almost no cost, it does not make sense to value them going by individuals' desire to consume them. Rather, the identical private good is used to determine the public good's value.
Hedonic Price Method
This method uses a surrogate good / service's value to determine a non-market good's price. For instance, prices of houses can be utilized in determining the value of particular environmental attributes.
