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GTAP Resource #3601

"A human well-being approach for assessing the value of ecosystem services"
by Kopmann, Angela and Katrin Rehdanz

The economics of subjective well-being provides an innovative theoretical and empirical approach of individual well-being analysis that has been increasingly applied in the recent past for valuing environmental amenities such as climate change. In this paper, this approach is extended for assessing the value of non-market ecosystem services by investigating people’s preferences for different types of areas such as agricultural areas, pasture, natural forests, natural grass- and scrubland, wetland and natural areas with little or no vegetation. In particular, a regression of life satisfaction on individual and household characteristics, climate measures and the percentage of different artificial and natural area categories is estimated on the NUTS 2 level for the EU 27 member states as well as Norway, Turkey and Macedonia, where regional differences are taken into consideration. Marginal values for natural areas are derived from the estimated relationship, which indicate that individuals would be willing to pay a significant amount of money for increasing ecosystem services providing areas. Implications of these results for the modeling of land use and ecosystem services in a CGE framework are discussed.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Created: Kopmann, A. (4/15/2011)
Updated: Kopmann, A. (8/9/2011)
Visits: 2,168
- Calibration and parameter estimation
- European Union

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