Question

Discuss the possible consequences if economic valuation of non-market good and services are not taken into consideration in decision or policy-making.
(10 marks)
b)     Explain how economic valuation can be incorporated in a Payment for Ecosystem Services (PES). project implementation.  You may answer by providing an example.

Answer 1

A. The possible consequences if economic valuation of non market goods and services are not taken into consideration in the season of policy making are as follows:
1. First of all it is important to understand that non market goods are not value in terms of money so if it is not taken into the consideration then it reduces the welfare in the economy.
2. The purpose of non-market goods is to capture all the things which includes the welfare and the values of the society.
3. For the quality giving it is very important to make the things as welfare point of view. Therefore the consequences are more to be addressed if you are not going to take the non market good into the consideration.
4. Non market goods are also related with the upliftment of the policy and the thinking of the society which will enhance the overall performance of the economic growth.
5. The purpose of non market goods are different because they are not in a way to provide the economic valuation but there is a way which provides the overall quality of population in the economy.
B. The economic valuation can be incorporated in a payment of ecosystem services in such a way that ecosystem services are totally dependent on the economic growth and the quality of economic development. Therefore all the things which are related with the economic development point of view are very important in the consideration of the ecosystem services. The ecosystem services are also considered to be a major part of the economic planning and implementation. Therefore all the services and all the structure of industrial units totally depends on the payment for ecosystem services. The best example is water pollution control and the air pollution control and the sustainable development of all the necessary resources in the economy.