Total Economic Value Concept: Essence, Evolution and Author's Approach

DOI

10.2991/iscfec-18.2019.21How to use a DOI?

Keywords

total economic value, ecosystem services, natural resources, option value, quasi-option value, existence value, structure

Abstract

Total economic value concept operates as a consistent approach for economic evaluation of natural resources in the context of exacerbation of the ecological crisis and overexploitation of natural resources. However, the essence and structure are still the subject of scientific research. This article determines that along with the existence of subjective, ideal and real values, the subjective values are the most interesting from the point of view of economic evaluation and distribution within the framework of the total economic value concept. The presented genesis of the term of “value”, analysis of the total economic value concept development and the theory of ecosystem services contributed to the creation of an author's approach to the distribution of values. We justify the inclusion in indirect value the cultural services as opposed to the direct value; option value takes into account the value in use by future individuals; we remobilize the quasi-option value in the structure of total economic value. The paper provides an improved total economic value model. This model takes into account the time aspect, the understanding of the term “value” and theoretical principles of ecosystem services and author's principle of value evaluation – “based on the best possible alternative”. The practical implications of the research is to improve the economic mechanism of government regulation of natural resource management by clarifying and improving the consistent basis for the economic evaluation of the value of natural resources for making managerial decisions on their involvement in economic turnover.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - A.V. Dushin
AU  - V.V. Yurak
PY  - 2019/01
DA  - 2019/01
TI  - Total Economic Value Concept: Essence, Evolution and Author's Approach
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2018)
PB  - Atlantis Press
SP  - 91
EP  - 97
SN  - 2352-5428
UR  - https://doi.org/10.2991/iscfec-18.2019.21
DO  - 10.2991/iscfec-18.2019.21
ID  - Dushin2019/01
ER  -