Cost Benefit Analysis AssignmentConsider an undistued Florida wetland, list a direct use value, an...

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Cost Benefit Analysis AssignmentConsider an undistued Florida wetland, list a direct use value, an indirect use value, an option value, and a non-use value.· XXXXXXXXXXKopp, R. J XXXXXXXXXXWhy Existence Value Should Be Used in Cost-Benefit Analysis. (Links to an external site.) Journal of Policy Analysis and Management. Vol. 11, No. 1.· XXXXXXXXXXRosenthal, D. H. & Nelson, R. H XXXXXXXXXXWhy Existence Value Should Not Be Used in Cost-Benefit Analysis.Links to an external site. Journal of Policy Analysis and Management. Vol. 11, No. 1.1. Ponder the arguments for and against using non-use values in CBA presented by the two articles you read this week. What do you think Rosenthal would say about trying to measure one of the non-use values *that someone else wrote*?  What would Kopp say in response?2.  A table showing approximate deforestation rates in percentage points is shown below. The top left cell, for example, says that the deforestation rate in protected areas was 1 percent before the protected area was established, and the top right cell indicates a deforestation rate of 4 percent in areas outside of protected areas before their establishment.First, read the information below, in the chart:        Protected Areas    Outside of protected areas    Before protected area established    0.01    0.04    After protected area established    0.05    0.08Using the information presented here answer the following questions:a. What is the impact of protected areas on deforestation using a before and after approach?. What is the impact of protected areas on deforestation using simple differences?c. What is the impact calculated using difference in differences?3. Which approach do you prefer and why? Think about a situation where the protected areas were randomly scattered across the landscape. How would this change the numbers in the cells for protected and not protected in the top row – before protected areas were established?

Pallavi · Accepted Answer

1. The arguments for using non use values in CBA as given by Kopp (1992) in his article are that economic value should be looked upon with an expanded meaning, the need for complete valuation of natural resources, and the fact that it is actually possible to measure intangible benefits related to environmental resources. It has also been pointed out by Kopp (1992) that it is important to include non use value in assessment of damages pertaining to environmental resources if the damage awards are supposed to be based on true cost of those resources. He further emphasized that the amount of damage awards must take into consideration the losses suffered owing to damage to the environment. Another major argument given by Kropp was that existence value of environmental resources should be treated in the same manner as the public goods are treated according to the welfare theory. If the existence value of environmental assets is excluded from cost benefit analysis, then the valuation of public goods should also be done on the same lines.
The arguments given by Rosenthal and Nelson (1992) against using non use values in cost...

Cost Benefit Analysis Assignment Consider an undisturbed Florida wetland, list a direct use value, an indirect use value, an option value, and a non-use value. · XXXXXXXXXXKopp, R. J XXXXXXXXXXWhy...

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