Value of Improved Information about Environmental Protection Values: Toward a Benefit–Cost Analysis of Public-Good Valuation Studies

What is the benefit from obtaining more precise values of environmental or other public goods through surveys or other information gathering? In the value of information (VOI) problem studied here, a buyer who wishes to preserve a resource sets a price to offer a seller without knowing precisely its protection value, B, nor its value to the seller, V. The VOI from more precise information about B is important for environmental and natural resource valuation, but is typically not quantified nor compared to valuation costs. More precise environmental values reduce the frequency of two types of mistakes (protecting the resource when it should not be; and not protecting it when it should), and increases ex ante welfare. We apply our analysis to Amazon rainforest protection, focusing on the “value of perfect information,” VOPI, which, we show through simulations, typically exceeds realistic valuation costs, justifying significant valuation expenditures. VOPI also depends on the nature of buyer–seller interactions, and takes its highest value when the buyer has full concern for the seller’s outcome. Our paper proposes and prepares the base for a new, needed, field in applied welfare economics, the “benefit–cost analysis of public-good valuation studies.”

Economic Performance and Optimum Cropping Patternbased on Alternative Price Scenarios in Arid-Western Plain Zone of Rajasthan State

The present investigation was undertaken to work out the economic performance and optimum cropping pattern based on alternative price scenarios in Arid-Western Plain Zone of Rajasthan state. In the present study, the unit-level cost of cultivation data of various crops for the triennium ending year 2013-14 which were collected from “Comprehensive Scheme to Study the Cost of Cultivation of Principal Crops in Rajasthan state. The performance of different crops was assessed by calculating net returns under three alternative price scenarios i.e. (i) Market prices (MP) (ii) Economic prices (EP) and (iii) Net income based on natural resource valuation technique (NRV). This study has considered subsidy as a cost to society. Similarly green house gas emissions from the crops have been taken as cost to the society and nitrogen fixation by leguminous crops have been taken as gain to the society. Results from the study shows that groundnut-barley combination of crop sequence was found the most remunerative in economic return generated over the year of `59418 per hectare followed by groundnut-vegetables (`53930/ha) and groundnut-gram (`52879/ha) combinations. Net gain to the farmers based on the alternative price scenarios viz. market, economic and natural resource valuation prices were estimated as `114.38 lakh, `114.45 lakh and `138.82 lakh, respectively. The overall gain to society has increased at economic prices by `49.39 lakh whereas it was decreased by `93.24 lakh at natural resource valuation due to the lack of cultivation of legume crops. The optimal plan is suggested that more area under cultivation of legume crops like groundnut, clusterbean and gram because of they are less water intensive and more environment friendly and thus have a positive impact on natural resource valuation with the existing water availability.

Expressed Preference Methods of Environmental Valuation: Non-Market Resource Valuation Tools

The objective of this paper was to give an overview of the expressed preference (EP) techniques of environmental valuation. These methods offer estimation of the value of a resource not necessarily willingness to pay (WTP) or willingness to Accept (WTA) compensation rather upper and lower values. The method of measuring individuals’ willingness to pay is usually based on contingent valuation method (CVM). This research focuses on defining, categorizing, and applicability of various environmental valuation techniques that have been and can be applied in attaching value to a given resource using expressed/Revealed preference methods. The study serves as a supplementary synthesis and discussion to the board of knowledge of resource valuation methods. More specifically, selected methods to discussed herein include; contingent valuation method, hedonic pricing model, travel cost method, trade-off game method, the costless-choice method, Delphi method, Replacement Cost Method, Relocation Cost Method, Opportunity cost method, and Cost-benefit Method. In the last part, applicability of the methods is fully illustrated to support future studies on resource valuation.

Proposing an improved economic value model for human resource valuation

Purpose The purpose of this paper is to propose an improved economic value model for human resource valuation. For this purpose, the probability of promoting people to a higher position and the satisfaction coefficient of employees and customers have been computed by competency and Kano models. Design/methodology/approach In order to calculate the probability of promoting people to a higher position, competency model and questionnaire have been used. The satisfaction coefficient of employees and customers has been calculated as a factor influencing the survival of an individual in the organization by using the Kano model. For this purpose, two questionnaires have been designed; one was completed by the employees and the other by the customers. The proposed model has been examined in a consulting company in Iran. Findings The human resource value of the company under study has been estimated over 29bn rials (Iranian currency). The obtained results indicate that the proposed approach as an integrative monetary and nonmonetary measure can remove the limitations of the economic value model. Practical implications The proposed model helps organizations in managing their human capitals more effectively. Originality/value In this study, the Kano and competency models have been integrated with one of the common models of human resource valuation, i.e. the economic value model. The proposed integrated model seems more effective compared to the basic model of economic value model. Application of the proposed model within the context of Iran for the first time would constitute as potential for contribution to the knowledge of human resource management in the developing countries.