ENVIRONMENTAL ECONOMIC VALUATION: SCIENCE OR EMPIRICISM?

Abstract

The purpose of this article is to proceed a survey of the literature about the methods of environmental economic valuation based on the neoclassical theory which has provided tools for estimating values for environmental resources. It is discussed the positive and negative aspects of the methods in searching for a better allocation efficiency of environmental resources to maximize the social welfare. Theoretical and empirical papers about the methods of valuation were revised, aggregated and criticized. The methods studied were: contingent valuation, hedonic prices, travel costs, avoiding costs, dose-response and replacement costs. Although imperfect, the calculated monetary values are useful instruments in the decision-making process of public policies. Comparing the alternative options, one can choose projects with greater potentialities for social welfare improvements. An up-to-date example (and of strategic importance) is the estimation of the losses resulted from the "genetic piracy". Limited use of these methods in Brazil has not allowed us to take advantage of the identification of economic profit opportunities. It is necessary that the theoretical debate continues and the empirical studies be undertaken, aiming to overcome a twenty-year gap in this field.