|Title||Non-market valuation in the economic analysis of natural hazards|
|Year of Publication||2016|
|Authors||Gibson, FL, Pannell, DJ, Boxall, P, Burton, M, Johnston, R, Kragt, M, Rogers, A, Rolfe, J|
|Institution||School of Agricultural and Resource Economics, Unviersity of Western Australia|
Natural hazards have a wide range of impacts, including on factors that are normally unpriced because they are not bought and sold in markets. Key examples include impacts on human health, the environment, ecosystem services and other outcomes relevant to social welfare. Economists seek to quantify these impacts in financial-equivalent terms in order to be able to compare them with market impacts and include them in Benefit: Cost Analysis (BCA) of policies and strategies to mitigate risks. Estimating these so-called non-market values can be difficult. This paper reviews the methods available for doing so, presents a comprehensive list of the non-market values that might be affected by natural hazards and reviews the existing literature that estimates non-market values relevant to natural hazards. We find that there are few applications specifically in a natural hazard context. We conclude with a discussion on the limitations of non-market valuation in the natural hazard context.