Valuing Environmental Functions: Tropical Wetlands
Recent studies have suggested that tropical wetland systems may have a crucial economic role to play in development. The following paper provides an overview of these benefits, using the general framework of cost-benefit analysis as the methodological approach to assessing wetland values. An analysis of trade-offs between conserving or converting tropical wetlands demonstrates that taking into account the opportunity cost of wetland loss leads to a lower level of conversion than would otherwise be the case. Finally, the paper discusses the extensions and limitations of the production function approach as applied to valuing nonmarketed wetland benefits.
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