KGA172 SPACE, PLACE AND NATURE LECTURE 23 QUANTIFYING INTANGIBLE VALUES Ronlyn Duncan .

KGA172

SPACE, PLACE AND NATURELECTURE 23

QUANTIFYING INTANGIBLE VALUES

Ronlyn Duncan

www.flickr.com/Lumasewww.flickr.com/Catchthedreamwww.flickr.com/Jimgoldstein

Lecture outlineLecture outline defines intangible valuesdefines intangible values describes some of the ways in which describes some of the ways in which

intangible values can be quantifiedintangible values can be quantified relates to questions 10, 11 and 12relates to questions 10, 11 and 12 vocabulary is underlined vocabulary is underlined

Intangible values = attitudes and preferences that are not immediately obvious, e.g.Intangible values = attitudes and preferences that are not immediately obvious, e.g.

Aesthetic value lies in the brain of the beholder, partly hard-wired by evolutionary processes and partly induced by experience and socialisation.

It includes sight, sound, smell, taste, touch and intuition.

Intangible values: what are they?Intangible values: what are they?

The archetypal beautiful view

Only regarded as aesthetically attractive by vegetable gardeners

www.flickr.com by Today is a good day, 2005

www.flickr.com *Micky, 2006

www.australianforests.org.au/images/australia

www.flickr.com by leoffreitas, 2006

Temporal and spatial variation in aesthetic preference related to intergenerational differentiation, culture and class

How do we integrate environmental How do we integrate environmental values into decisions …values into decisions …

when they are:when they are: intangibleintangible often conflictingoften conflicting time-consuming to obtaintime-consuming to obtain difficult to separate out.difficult to separate out.

Often left out or insufficiently recognised in Often left out or insufficiently recognised in decisions that alter or exploit space, place decisions that alter or exploit space, place and nature.and nature.

What are the social values of urban What are the social values of urban woodlands?woodlands?

March, 2003: postal survey sent to 1000 March, 2003: postal survey sent to 1000 residents aged between 15-75 years residents aged between 15-75 years randomly sampled.randomly sampled.

Mapped social values of green areas.Mapped social values of green areas. Qualitative + quantitative approach.Qualitative + quantitative approach.

Tyrvainen, L., Makinen, K. & Schipperijn, J. (2007, p. 7). Tools for mapping social values of urban woodlands and other green areas. Landscape and Urban Planning, 79, 5-19.

Study site: East Helsinki, Finland, 10 km from city centre. Mainly young forests, former agricultural land and narrow forested belts.Tyrvainen, L., Makinen, K. & Schipperijn, J. (2007, p. 7). Tools for mapping social values of urban woodlands and other green areas. Landscape and Urban Planning, 79, 5-19.

What are the social values of urban What are the social values of urban woodlands?woodlands?

How much and what kinds of green areas How much and what kinds of green areas should be provided for residents in urban should be provided for residents in urban areas?areas?

Do suburban green areas provide high-Do suburban green areas provide high-quality benefits for residents?quality benefits for residents?

Where do residents find attractive and Where do residents find attractive and meaningful green areas and what are the meaningful green areas and what are the characteristics of these areas?characteristics of these areas?

Also asked about negative values of unpleasantness, scariness and noise


80% very important17% relatively important


Thematic map for each quality was plotted from the votes received per area

Typology of environmental Typology of environmental valuesvalues

Environmental Values

Ecosystem services

Current use

Non-use Use

Ecocentric (nature-centred)

Anthropocentric (human-centred)

Future use (Option)

Existence Bequest

Direct

Spiritual

Economic valuation methodsEconomic valuation methods

Economic valuation method

Surrogate valuation Direct valuation

No observable market data (stated preference)

Observable market data (revealed preference)

Simulated valuation

Contingent valuation

Hedonic pricing

Travel cost

Replacement cost

Example: Water treatment cost

Recreation value

Example: Scenic value

Non-market economic values (existence, option, bequest)

Travel cost methodTravel cost method A revealed preference methodA revealed preference method Uses actual behaviour and travel costs to Uses actual behaviour and travel costs to

reveal underlying preferences of reveal underlying preferences of individualsindividuals

Infers willingness to pay for environmental Infers willingness to pay for environmental quality from decisions made about where quality from decisions made about where to travel for recreation. to travel for recreation.

Keohane, N.O. & S.M. Olmstead (2007). Markets and the Environment, Island Press, Washington. p. 33-43

Hedonic PricingHedonic Pricing A revealed preference method.A revealed preference method. Uses observed market prices to infer value Uses observed market prices to infer value

of environmental amenity that is “bundled” of environmental amenity that is “bundled” with private goods.with private goods.

Often uses housing market data.Often uses housing market data. Infers from market real estate prices Infers from market real estate prices

willingness to pay for environmental willingness to pay for environmental quality.quality.


Contingent ValuationContingent Valuation Contingent valuationContingent valuation is a stated is a stated

preference method.preference method. People are asked in surveys about their People are asked in surveys about their

willingness to pay for an environmental willingness to pay for an environmental amenity, e.g. better air quality.amenity, e.g. better air quality.


Recommended reading:Recommended reading:

On MyLO:Keohane, N.O. & S.M. Olmstead (2007).

Markets and the Environment, Island Press, Washington. p. 33-43.


KGA172 SPACE, PLACE AND NATURE LECTURE 23 QUANTIFYING INTANGIBLE VALUES Ronlyn Duncan .

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