Total Economic Value

The Total Economic Value approach is a common methodology in the field of environmental economics and ecological economics to economics evaluation of changes in the provision of environmental goods. The Total Economic Value ( TEV, German economic total value ) is the sum of the individual values ​​of a number of different value categories.

An often -cited illustration of the TEV of environmental goods ( "environmental assets" ) can be found in Pearce & Moran (1994). The TEV shall be then as follows from utility (use values) and non- use values ​​(non -use values):

Use values ​​are usually easier to quantify than non-use values ​​, as use-values ​​, at least theoretically leave traces in the economic action. Can be no assessment by the use of market values ​​perform elements of TEV among other things by means of stated preference methods can be (eg contingent valuation method). For the estimation of the value of the change of non-use values ​​almost always stated preference methods must be used.

Single Documents

• Environmental Economics