Existence values are a class of
economic value
In economics, economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured through units of currency, and the interpretation is therefore "what is the maximum amount of money a speci ...
, reflecting the benefit people receive from knowing that a particular environmental resource, such as
Antarctica
Antarctica () is Earth's southernmost and least-populated continent. Situated almost entirely south of the Antarctic Circle and surrounded by the Southern Ocean, it contains the geographic South Pole. Antarctica is the fifth-largest cont ...
, the
Grand Canyon
The Grand Canyon (, yuf-x-yav, Wi:kaʼi:la, , Southern Paiute language: Paxa’uipi, ) is a steep-sided canyon carved by the Colorado River in Arizona, United States. The Grand Canyon is long, up to wide and attains a depth of over a m ...
, endangered species, or any other organism or thing exists.
Existence value is a prominent example of
non-use value, as they do not require that
utility
As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosophe ...
be derived from direct use of the resource: the utility comes from simply knowing the resource exists. The idea was first introduced by
John V. Krutilla in his essay "Conservation Reconsidered."
[John Krutilla: ''Conservation Reconsidered''. In: The American Economic Review, Volume 57, Issue 4, Sep. 1967, pp. 777-786] As the Canadian Privy Council explains existence value is "A concept used to refer to the intrinsic value of some asset, normally natural/environmental. It is the value of the benefits derived from the asset's existence alone. For example, a tree can be valued in a number of ways, including its use value (as lumber), an existence value (simply being there), and an
option value (value of things that it could be used for). Existence value is separate from the value accruing from any use or potential use of the asset."
These values are commonly measured through
contingent valuation
Contingent valuation is a survey-based economic technique for the valuation of non- market resources, such as environmental preservation or the impact of externalities like pollution. While these resources do give people utility, certain aspec ...
surveys and have been actionable damages in the US since . They were used in a legal assessment of damages following the
Exxon Valdez oil spill
The ''Exxon Valdez'' oil spill occurred in Prince William Sound, Alaska, on March 24, 1989. '' Exxon Valdez'', an oil supertanker owned by Exxon Shipping Company bound for Long Beach, California struck Prince William Sound's Bligh Reef, w ...
.
See also
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Ecosystem services
Ecosystem services are the many and varied benefits to humans provided by the natural environment and healthy ecosystems. Such ecosystems include, for example, agroecosystems, forest ecosystem, grassland ecosystems, and aquatic ecosystems. ...
*
Value of Earth
References
{{DEFAULTSORT:Existence Value
Environmental economics