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The valuation of resources and environment policy instrumentsIntroduction Chapter 8 was concerned largely with the wider global environmental issues and economic impact of tourism with particular reference to sustainability. After introducing the scope and content of the microeconomic analysis of the environment the core of chapter 9 was to demonstrate the relevance to tourism of capital appraisal methods the elements of market valuation the consequences for the environment of market failure and their conservation. Of particular importance is the effect of the sector on the natural resource base. This chapter starts from the point in figure 9.2 presented in chapter 9 which concerns the valuation of resources following on from the problems associated with market failure. There is almost a sequential relationship between the three main forms of market failure identified in figure 9.2. the remainder of the figure concerns the concept of economic value valuation methods and environmental policy instruments and their evaluation which determine environmental practice as it contributes to sustainability. Prior to giving an exposition of the methods of valuing resources not traded in the market the concept of total economic value is explained. An exposition and appraisal of the valuation methods are undertaken and their application to tourism assessed. Attention is then turned to the achievement of environmental goals and targets including the mitigation of pollution the use of resource and the associated benefits and costs. The relative advantages and disadvantages of price or market based as opposed to regulatory instruments are the considered. The chapter is concluded by offering some observations on the state of economic methods and environmental action in relation to tourism.
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