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Cost Benefit Rules when Nature Counts

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  • Johansson-Stenman, Olof

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

This paper analyses normative implications of relaxing the conventional welfare economics assumptions anthropocentrism and welfarism, i.e. that only human well-being counts intrinsically, combined with various types of non-selfish individual preferences. Social decision rules are derived for the optimum provision of a public good (environmental quality). It is shown that in several cases analysed, the basic Samuelson rule still holds, in terms of aggregate marginal willingness to pay.

Suggested Citation

  • Johansson-Stenman, Olof, 2006. "Cost Benefit Rules when Nature Counts," Working Papers in Economics 198, University of Gothenburg, Department of Economics, revised 09 May 2006.
    • Handle: RePEc:hhs:gunwpe:0198
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    File URL: http://hdl.handle.net/2077/2724
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    1. Davidson, Marc D., 2013. "On the relation between ecosystem services, intrinsic value, existence value and economic valuation," Ecological Economics, Elsevier, vol. 95(C), pages 171-177.

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    More about this item

    Keywords

    Altruism; welfarism; anthropocentrism; cost-benefit analysis; public good provision; social preferences; conditional cooperation;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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