Bahan Kajian MK. Ekonomi Sumberdaya Alam dan Lingkungan
METODE VALUASI
EKONOMI
JASA EKOSISTEM
1
Smno.psdl.pdkl.ppsub1023
REPLACEMENT
COST
REPLACEMENT VALUE
The term replacement cost or replacement value refers to the amount
that an entity would have to pay to replace an asset at the present time,
according to its current worth.
In the insurance industry, "replacement cost" or "replacement cost
value" is one of several method of determining the value of an insured
item. Replacement cost is the actual cost to replace an item or structure
at its pre-loss condition. This may not be the "market value" of the item,
and is typically distinguished from the "actual cash value" payment
which includes a deduction for depreciation.
For insurance policies for property insurance, a contractual stipulation
that the lost asset must be actually repaired or replaced before the
replacement cost can be paid is common.
Replacement cost policies emerged in the mid-20th century; prior to that
concern about overinsurance restricted their availability.
Replacement cost coverage is designed so the policyholder will not
have to spend more money to get a similar new item and that the
insurance company does not pay for intangibles.
Diunduh dari: http://en.wikipedia.org/wiki/Replacement_value ….. 4/11/2012
The replacement cost method assumes that it is possible to find substitutes for
environmental goods and ecosystem services.
The cost of replacing a function of an ecological system with a human
engineered system is used as a measure of the economic value of the
function itself.
The conditions that must be met are the following:
1. The human engineered system provides functions that are equivalent in
quality and magnitude to the ecosystem service.
2. The human engineered system is the least cost alternative way of replacing
the ecosystem service.
3. Individuals in aggregate would in fact be willing to incur these costs if the
ecosystem service was no longer available.
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
Summary of replacement cost studies.
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
The replacement
cost method is a
valuation method
based on cost
estimates.
The cost of a manmade substitute, that
provides the same
service as the
ecosystem, is
estimated to derive
the economic value
of that ecosystem
service.
The replacement cost method will only result in
valid estimates of economic values if the
following three conditions are met:
1. The human engineered system provides
functions that are equivalent in quality and
magnitude to the ecosystem service
2. The human engineered system is the least
cost alternative way of replacing the
ecosystem service.
3. Individuals in aggregate would in fact be
willing to incur these costs if the service
was no longer available (Shabman & Batie,
1978).
Shabman, L.A. & Batie, S. 1978. Economic Value of Natural
Coastal Wetlands: A Critique. Coastal Zone
Management Journal, 4, 231-247.
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
The concept of value
The economic concept of value is based on individuals’ preferences. People
make trade-offs by choosing less of one good and more of some other
good and these trade-offs reveal the economic values people place on the
goods.
Individuals might place such values on resources not only because of the use
people make of them, but also as a result of altruistic concerns. The latter
can be the source of non-use or existence values .
The total economic value can thus be divided into use and non-use values. Use
values are derived from the direct individual use of a resource; a forest
provides for example timber but also opportunities for outdoor recreation.
Use values are not only placed on goods that are used directly, but also on
goods that are used indirectly.
Indirect use values can be derived from ecological functions, such as flood
control provided by wetlands.
People also place monetary values on natural resources that are independent of
their present use of those resources, which characterizes non-use values.
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
WELFARE MEASURES
Economic values are the result of individuals’ preferences, which are
communicated as people make trade-offs between goods.
The willingness to pay (WTP) is the sum that an individual is willing
and capable to pay for a good or service.
In a perfect economy the price of a good gives information on the marginal
willingness to pay for that good.
However, for many environmental goods no market exists and the WTP is not
expressed by a price.
The fact that no price exists for many environmental goods should not be
interpreted as if they have no value. Still, individuals might make trade-offs
also between goods that are not traded on markets, which express that
the goods actually have a value although it is not communicated as a
market price.
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
The replacement cost method is, as the defensive expenditure method, based
on the assumption about perfect substitutes, but the replacement cost
method is based on non-market behaviour. The cost of a potential or actual
replacement technique is used to derive a value of a change in
environmental quality.
The cost of replacing an ecosystem service with a man-made substitute is
used in the replacement cost method as a measure of the economic value
of the ecosystem service.
Consequently, it must be possible to identify a substitute for the ecosystem
service. The cost of investment and the maintenance cost should both be
included in the replacement cost. The method could for example be applied
to value the flood protection capacity of wetlands by estimating the cost of
replacing this capacity with the use of a human made protection, i.e. some
kind of artificial coastal defence such as breakwaters or sea walls.
The method could also be used to estimate a value of soil fertility by looking at
the cost of fertilizers needed to maintain a certain level of productivity.
Diunduh dari:
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The method is based on the possibility of finding perfect substitutes to
ecosystem services. However, the validity of the method does not only
depend on the possibility of finding perfect substitutes.
Replacement costs can be a valid measure of economic value only if three
conditions are met.
The conditions are the following:
1. The human engineered system provides functions that are equivalent in
quality and magnitude to the ecosystem service (Perfect substitutes).
2. The human engineered system is the least cost alternative way of replacing
the ecosystem service (Cost-effectiveness ).
3. Individuals in aggregate would in fact be willing to incur these costs if the
ecosystem service was no longer available (Willingness to pay ).
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
Soil erosion in the Upper Mahaweli Watershed of Sri Lanka
Gunatilake and Vieth (2000) present a comparison between the replacement cost method
and the productivity change method. Both methods are applied to estimate the onsite cost of soil erosion in the study area.
The on-site cost of erosion is defined as the value of lost future productivity due to
current cultivation. To estimate the replacement cost information on nutrient loss
per ton soil eroded, price of nutrients and the cost of labour spreading fertilizer are
required. The cost of repair and maintenance of damages due to soil erosion is
also included in the replacement cost. Information on nutrient levels in eroded soils
was not available in this study and therefore nutrient levels in non-eroded soils were
used, under the assumption that soil nutrient levels in eroded and non-eroded soils
were the same. Fertilizers generally used in Sri Lanka are identified and the cost of
nutrient replacement is calculated from market prices assuming the use of these
fertilizers.
The estimated on-site cost value is also used in a cost-benefit analysis and compared to
the cost of soil conservation practices. Stone terraces and spill drains are two
examples of soil conservation measures evaluated in the study.
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
Soil erosion in the Upper Mahaweli Watershed of Sri Lanka
It is assumed that the productivity of soil can be maintained by replacing the lost
nutrients and organic matters artificially.
This assumption can be considered as an argument for the idea that the replacement,
fertilizers, provides functions that are equivalent in quality and magnitude to the
ecosystem service.
The first condition is met if this assumption holds. However, it is not presented how
organic matter lost due to soil erosion should be replaced.
The second condition concerns cost-effectiveness of the replacement technique.
Whether applying chemical fertilizer is the least cost replacement technique is not
discussed in the paper. Therefore, it is difficult determine if the cost- effectiveness
condition is met. From the information in the article it cannot be concluded if the
least cost alternative has been used for valuation.
A discussion about the connection between the replacement cost and the willingness to
pay is also missing. The authors do not present any evidence that a willingness to
pay for the service exists and consequently it could not be concluded if the third
condition is met.
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
Soil erosion in Korea
Inadequate soil management techniques have made erosion a severe problem
in these upland areas. The productivity in the upland areas can be
maintained either by physically replacing lost soil and nutrients or by
adopting a management technique and this is compared in a cost-benefit
analysis.
The replacement costs are interpreted as a minimum estimate of the value of
measures that will improve on site management practices and thereby
prevent damages. A combination of straw mulching and vertical mulching is
found to be the most efficient soil management approach in reducing
erosion. Then, the replacement costs are estimated by adding the cost of
fertilizer, transport of organic matter, irrigation and the cost of repairing
damaged field structures.
Compensation payments for deposition of soil in lowland fields from upland
farmers to lowland farmers are also included in the replacement cost. These
are all annual costs. In addition to the estimation of the replacement cost
and the cost of the soil management technique, an analysis of a status
quo alternative is also provided.
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SOIL EROSION IN KOREA
It is assumed that the productivity in upland areas can be maintained by
replacing lost soil nutrients with fertilizer. Moreover, lowland fields are also
repaired, which means the damage caused by soil erosion in upland areas
is compensated for. If this assumption holds the first condition is met.
It is not demonstrated that replacement techniques, fertilizer, irrigation and
supply of organic matter, are cost-effective alternatives. Other replacement
techniques might exist , it is difficult to determine if the cost-effectiveness
condition is met.
The willingness to pay for the new soil management technique does not seem
to exist, despite the fact that it would be economically rational to use straw
and vertical mulching as preventive measures.
Diunduh dari: http://www.beijer.kva.se/PDF/59295695_Disc184.pdf ….. 4/11/2012
Replacementcost: A practical measure of site value for cost-effective reserve
planning
Mar Cabeza , Atte Moilanen
Biological Conservation. Volume 132, Issue 3, October 2006, Pages 336–342.
Conservation needs are often in direct competition with other forms of land-use, and
therefore protection of biodiversity must be cost-efficient. Besides cost-effective
solutions we require flexibility if land-use conflicts are to be effectively resolved.
We introduce a novel concept for site value in quantitative reserve planning.
Replacement cost refers to the loss in solution value given that the optimal cost-efficient
solution cannot be protected and alternative solutions, with particular sites forcibly
included or excluded, are needed.
This cost can be defined either in terms of loss of biological value or in terms of extra
economic cost, and it has clear mathematical definitions in the context of benefitfunction-based reserve planning.
A main difference with the much-used concept of irreplaceability is that the latter tells
about the likelihood of needing a site for achieving a particular conservation target.
The replacementcost tells us at what cost (biological or economic) can we exclude
(or include) a site from the reserve network. Here, we illustrate the concept with
hypothetical examples and show that replacement-cost analysis should prove useful
in an interactive planning process, improving our understanding of the importance
of a site for cost-efficient conservation.
Diunduh dari: http://www.sciencedirect.com/science/article/pii/S0006320706001820 ….. 4/11/2012
Replacementcost: A practical measure of site value for cost-effective reserve
planning
Mar Cabeza , Atte Moilanen
Biological Conservation. Volume 132, Issue 3, October 2006, Pages 336–342.
Benefit functions of representation –
increasing representation indicates
increasing value for the species.
Target-based selection with equal
treatment for species implies the use
of the step function with equal
weights for species, wj = 1.
The step function does not
distinguish how much above or below
the nominal target is the
representation.
If proportional target achievement is
valued, then the ramp function is
used implicitly.
Diunduh dari: http://www.sciencedirect.com/science/article/pii/S0006320706001820 ….. 4/11/2012
Replacementcost: A practical measure of site value for cost-effective reserve
planning
Mar Cabeza , Atte Moilanen
Biological Conservation. Volume 132, Issue 3, October 2006, Pages 336–342.
Replacement cost of a hypothetical site (a) in
terms of increase in resources required to
maintain value (ΔC) and (b) in terms of loss of
conservation value (ΔF).
(a) Exclusion cost: the dashed line indicates the
value of the best solution when site x is
forcibly excluded. Up to a certain resource
level, Cmin, site x does not belong to the
optimal solution and thus exclusion cost is
zero. Even with C > Cmin, exclusion cost can
be zero if the conservation value in the site
is replaceable with populations occurring in
some other combination of sites.
(b) Inclusion cost: the dashed line indicates the
value of the best solution when a site is
forced to be included in the solution.
Inclusion cost is highest with low resource,
when the forced inclusion of the unwanted
site prevents the acquisition of other
biologically much more valuable locations.
Diunduh dari: http://www.sciencedirect.com/science/article/pii/S0006320706001820 ….. 4/11/2012
DAMAGE COST AVOIDED METHOD
The damage cost avoided method uses either the value of property
protected, or the cost of actions taken to avoid damages, as a
measure of the benefits provided by an ecosystem.
For example, if a wetland protects adjacent property from flooding,
the flood protection benefits may be estimated by the damages
avoided if the flooding does not occur or by the expenditures
property owners make to protect their property from flooding.
Avoided cost Services allow society to avoid costs that would
have been incurred in the absence of those services (e.g. waste
treatment by wetland habitats avoids health costs).
Diunduh dari: http://www.ecosystemvaluation.org/cost_avoided.htm#summa ….. 4/11/2012
APPLYING THE DAMAGE COST AVOIDED
This method require the initial step—assessing the environmental service(s)
provided. This involves specifying the relevant service(s), how they are
provided, to whom they are provided, and the level(s) provided.
For example, in the case of flood protection, this would involve predictions of
flooding occurrences and their levels, as well as the potential impacts on
property.
The second step is to estimate the potential physical damage to property, either
annually or over some discrete time period.
The final step is to calculate either the dollar value of potential property damage,
or the amount that people spend to avoid such damage.
Diunduh dari: http://www.ecosystemvaluation.org/cost_avoided.htm#summa ….. 4/11/2012
Advantages of the Damage Cost Avoided Method
1. The methods may provide a rough indicator of economic value, subject
to data constraints and the degree of similarity or substitutability
between related goods.
2. It is easier to measure the costs of producing benefits than the benefits
themselves, when goods, services, and benefits are nonmarketed. Thus, these approaches are less data- and resourceintensive.
3. Data or resource limitations may rule out valuation methods that
estimate willingness to pay.
4. The methods provide surrogate measures of value that are as
consistent as possible with the economic concept of use value, for
services which may be difficult to value by other means.
Diunduh dari: http://www.ecosystemvaluation.org/cost_avoided.htm#summa ….. 4/11/2012
Issues and Limitations..
1. This approach assumed that
expenditures to repair damages are
valid measures of the benefits
provided. However, costs are usually
not an accurate measure of benefits.
2. This method does not consider social
preferences for ecosystem services, or
individuals’ behavior in the absence of
those services. Thus, it should be used
as a last resort to value ecosystem
services.
3. The method may be inconsistent
because few environmental actions and
regulations are based solely on benefitcost comparisons. Therefore, the cost
of a protective action may actually
exceed the benefits to society. It is also
likely that the cost of actions already
taken to protect an ecological resource
will underestimate the benefits of a new
action to improve or protect the
resource.
Diunduh dari: http://www.ecosystemvaluation.org/cost_avoided.htm#summa ….. 4/11/2012
Issues and Limitations..
1. This approach should be used only after
a project has been implemented or if
society has demonstrated their
willingness-to-pay for the project in
some other way (e.g., approved spending
for the project). Otherwise there is no
indication that the value of the good or
service provided by the ecological
resource to the affected community
greater than the estimated cost of the
project.
2. Just because an ecosystem service is
eliminated is no guarantee that the
public would be willing to pay for the
identified least cost alternative merely
because it would supply the same
benefit level as that service. Without
evidence that the public would demand
the alternative, this methodology is not
an economically appropriate estimator of
ecosystem service value.
Diunduh dari: http://www.ecosystemvaluation.org/cost_avoided.htm#summa ….. 4/11/2012
HEDONIC
PRICING COST
.HEDONIC PRICING.
The Hedonic Price Model
Etymologically, the term “hedonics” is derived from the Greek word hedonikos, which
simply means pleasure. In the economic context, it refers to the utility or satisfaction one
derives through the consumption of goods and services.
Two main approaches contributed greatly towards the theoretical work on hedonic
prices. The first approach was derived from Lancaster’s (1966) consumer theory, and the
second comes from the model postulated by Rosen (1974).
Both of these approaches aimed to impute prices of attributes based on the relationship
between the observed prices of differentiated products and the number of attributes
associated with these products.
The hedonic price model surmised that goods possess a myriad of attributes that
combine to form bundles of characteristics (or objectively measurable, utility-affecting
attributes), which the consumer values.
Diunduh dari:
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.HEDONIC PRICING.
The hedonic price approach derived from
property values is a popular measure of the
price of environmental differences and has
also been extended to other areas.
The method is used to evaluate air pollution,
the effects of aircraft noise, road traffic,
railway noise, a good view, spacious
streets, and a "good neighbourhood".
Studies can highlight the negative impacts
of air pollution, noise pollution etc on land
values and thus reveal the implicit or
indirect price of environmental difference.
The approach works in the following manner. Take the case of a house that is close to
a scenic landscape or beach. The proximity of this house to a scenic view or beach
increases its value relative to a similar house in another less favourable location. This
in turn allows for a indirect determination of the value of the environmental amenity
itself by comparing the different prices attached to the two houses.
Diunduh dari:
http://www.euromotor.org/moodle/mod/resource/view.php?id=13990….. 4/11/2012
.HEDONIC PRICING.
The process is carried out in two stages.
In stage 1 the price paid for the environmental service such as the scenic view, is
estimated by investigating the statistical relationship between the service and a related
issue for which the price is known e.g. house prices. So, the implicit price is estimated
by first step regression analysis where house prices would be regressed on different
characteristics.
In stage 2 the "price" is used to derive a demand curve or marginal willingness to pay
(WTP) function from these characteristics. This is carried out by regressing the implicit
price against observed samples and other variables to estimate the demand function.
For example: investigate the relationship between house price and the presence of trees,
in order to gain an awareness of the value of trees in the urban environment.
In stage 1 the "price" of trees would be estimated carrying out statistical analysis and
deriving a function :
Where α : constant ; b1 : Coefficient on number of trees ; b2 : Coefficient on structural
characteristics ; b3 : Coefficient on neighbourhood characteristics ; b4 ; Coefficient on
other explanatory variables .
b1 is the coefficient of interest since this relates to the focus, i.e. presence of trees
Analysis of the equation provides the proportion of the house price that can be attributed
to the presence of trees known as Pt i.e. price of trees.
Diunduh dari:
http://www.euromotor.org/moodle/mod/resource/view.php?id=13990….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
Deterioration of the Izmit Bay ecosystem, mainly caused by heavy industrialization and
urbanization, has significantly impaired its beneficial use and resulted in the surrounding
coastal zone losing its attractiveness for the inhabitants. One of the main indicators of
deterioration of the coastal system is the decreasing water quality resulting from
increased nutrient loads from the surrounding land.
The consensus during the initial stakeholder meeting confirmed the widespread
awareness of this phenomenon and “improvement of water quality in Izmit Bay” was
determined as the main policy issue at stake.
Public perception of and satisfaction with water quality were measured by a willingness
to pay (WTP) survey. The WTP for improved water quality was analyzed using the
contingent valuation method.
According to the questionnaire survey, 55% of the participants are willing to pay to
increase the water quality. Impact of water quality on real-estate values was evaluated by
hedonic pricing method, which is suitable for estimating direct and indirect use values of
water resources.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
Ecosystem goods and services for Izmit Bay :
1. Seafood. Despite the anthropogenic pollution,
national legislation considers this region as an
aquatic production area. However, fishing is not an
important economic activity due to the loss of
valuable fish. Mediterranean mussels (Mytilus
galloprovincialis) grow wild along the coast,
especially near discharges, but are not edible
because of the pollution.
2. Natural amenities. Before the 1970s, the clear waters
of Izmit Bay were very attractive for recreation
activities, and Izmit and Hereke were famous sailing
towns. These leisure activities are decreasing every
year because of the decline in the coastal water
quality. The urbanization (physical growth of urban
area) of the coastal landscape has diminished the
previous serenity of the Bay.
3. Coastal tourism. There are still several local tourism
centers in the southern region of the Bay. Until the
present study, the link between tourist visits and
environmental condition of this coastal system had
not been analyzed, yet it seems clear that the
dominance of industrial activities must have an
adverse effect on tourism in the region.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
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Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
Ecosystem goods & services for Izmit Bay :
1. Waste assimilation capacity. The Bay is the
receiving body for most of the treated and
untreated domestic–industrial wastewaters of the
region. Due to the long residence times of the
bottom waters, our simulation suggests an
imminent risk of creating a costly anoxic
condition in the deep Central basin.
2. Provision of cultural amenities and spiritual
value. The Izmit Bay, its coasts, and the
enveloping skies are the spiritual heritage of all
who live in their environment and a source of
renewal and refreshment for the multitude who
witness them. Mystics, artists, musicians,
writers, and fishermen have responded to this
throughout the ages.
3. The Bay has also a great importance for
scientists from different disciplines
(environment, earth, and marine sciences)
because of its geographic location and
interesting oceanographic characteristics.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
Socioeconomic response
There are several methods in the literature for estimating the use and/or nonuse values of ecosystem services. Izmit Bay provides services to the public and
individuals, thus, we focused not only on its present use value but also on its
non-use value.
The reduced water quality has impacts both on manufactured capital (housing
prices) and social capital (people’s preferences and satisfaction).
If pollution of the bay is reduced, both manufactured capital and social capital
will increase.
Hedonic pricing analysis (HPA) and contingent valuation (CV) constitute two
ways of estimating social and economic (market and non-market) benefits; the
former estimates use values, and the latter estimates both use and non-use
values of improved water quality.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
Conceptual diagram of the social and economic model for the Izmit Bay coastal system.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
A diagram of the
structure of data
and methods used
for the social and
economic
components of the
study.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
Hedonic pricing analysis (HPA)
Hedonic pricing analysis is used to estimate an implicit price for environmental
characteristics by looking at real markets in which those characteristics are effectively
traded. It assumes that a house in a clean environment will have a higher market value
than an identical one located in a polluted area.
This method needs a large number of observations in order to make a correlation
between the price and the environmental factor (water clarity in our case). The price of a
house is determined through a regression analysis that relates the price of the property
to its characteristics, and the environmental characteristic of interest. The regression
results indicate how much property values will change for a small change in each
characteristic, holding all other characteristics constant.
There are eight different parameters of water quality and found that only turbidity (which
is comparable to SDD measurements of clarity used in this study) and fecal coliform
levels significantly correlated with property prices.
The poor water quality is resulting from eutrophication in Maine lakes and showed the
SDD measurements were those most easily discerned by the public. Secchi disk depth
was also highly correlated with other indicators of eutrophication, such as dissolved
oxygen, chlorophyll levels, fish habitat, and suitability for bathing.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
In this study, the HPA was used to determine the loss of economic benefit due to
pollution, based on real-estate values.
We selected SDD as an indicator of water transparency, something easily observed by
local inhabitants, and assigned the SDD value of the nearest station to each apartment.
The Marmara Research Center (MRC) Environment Institute (EI) offered water quality data
from monitoring studies of Izmit Bay conducted by MRC-EI in 2001–2002 and 2008–2009.
The information on the real-estate properties was collected from websites of real-estate
agencies.
Data regarding the price and physical properties of apartments (location, size, age, room
number, floor, type of heating, whether has balcony, garden, parking area, sea view, etc.)
were collected for 174 apartments for sale all around the bay (all by the seaside).
A regression (hedonic) analysis was conducted using all available data.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
Hedonic pricing analysis
The studies showed that water quality can significantly affect property prices and provide insight for
the Izmit Bay study site application.
Among different variables used to describe the physical properties of a house, only the size of an
apartment was statistically significant in influencing the price of an apartment, but the ecological
parameter of SDD was also statistically significant.
The following formula defines price, P, as a function of S and SDD variables:
P = - 69,9 + 955 S + 30,1 (ln SDD); R2 = 0.50, F = 85.4
where P is the sales price of an apartment in TL, S is size of an apartment in square meters, and
SDD is the transparency of water in meters. The number of observations is 174.
The SDD or water clarity varied between 2 and 12 m for the locations examined in the present study.
Water clarity is expressed as the natural log in the above equation to reflect the nonlinear
relationship between price and water clarity. It is assumed that, at lower levels of water clarity,
property owners are willing to pay more for a 1-m improvement in clarity than are owners who live
near water that is relatively clear. In fact, changes in clarity occurring above 4 m are not as visibly
noticeable as are changes in clarity below this threshold, supporting the assumption that the
relationship between property prices and water clarity is nonlinear.
Thus, it can be inferred that an increase in water clarity from 2 to 3 m would increase the price of the
average apartment (ca. 450 EUR/m2) by EUR 6.0/m2, whereas an increase from 5 to 6 m would only
increase the average apartment price by EUR 2.3/m2.
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
Baban. 2012.
Socioeconomic response to water quality: a first experience in science and policy integration for
the Izmit Bay coastal system.
Ecology and Society 17(3): 40.
The logarithmic
relationship
between SDD
and real-estate
value as
obtained from
regression
equation .
Diunduh dari: http://www.ecologyandsociety.org/vol17/iss3/art40/
….. 4/11/2012
References
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37
Joachim H. Spangenberg, Josef Settele.
Ecological Complexity. Volume 7, Issue 3, September 2010, Pages 327–337
Environmental scientists employ political
and economic arguments to argue for the
conservation of biodiversity and the
maintenance of ecosystemservices.
However, the economic terminology has
a number of connotations which makes
its usefulness for the intended effect
questionable.
On the one hand, the basic assumptions
underlying economicvaluation are far
from realistic and represent rather a
caricature of human behaviour. On the
other hand, the methods based on these
assumptions are manifold and lead to
wildly diverging results. Thus the
calculated value of ecosystems and their
services is not a robust figure, but varies
with the valuation method applied (plus a
plethora of subjective assumptions).
Diunduh dari:
http://www.sciencedirect.com/science/article/pii/S1476945X10000267….. 4/11/2012
Joachim H. Spangenberg, Josef Settele.
Ecological Complexity. Volume 7, Issue 3, September 2010, Pages 327–337
As a result, it is not possible to ‘objectively’ calculate the value of
ecosystemservices. Fortunately, it is also not necessary to do so.
Given the inherent flaws of the valuation process, it seems more promising for
biodiversity and its conservation to restrict the economic calculus to the role of
a contribution in the implementation process for a set of politically defined
targets, rather than using it as the target setting mechanism itself.
Market prices play a role in this analysis, as one factor amongst
others.
For the implementation, cost-effectiveness analysis gives
important hints, and economic instruments – inter alia – can play
an important role as enforcement mechanisms. However,
incentives should be based on criteria of (potential) effectiveness,
not on value calculations.
Diunduh dari:
http://www.sciencedirect.com/science/article/pii/S1476945X10000267….. 4/11/2012
Joachim H. Spangenberg, Josef Settele.
Ecological Complexity. Volume 7, Issue 3, September 2010, Pages 327–337
From ecosystem traits to services, via ecosystem functions.
Diunduh dari:
http://www.sciencedirect.com/science/article/pii/S1476945X10000267….. 4/11/2012
Joachim H. Spangenberg, Josef Settele.
Ecological Complexity. Volume 7, Issue 3, September 2010, Pages 327–337
Clustering economic valuation approaches according to objects and methods
Diunduh dari:
http://www.sciencedirect.com/science/article/pii/S1476945X10000267….. 4/11/2012