GEOG 3ER3- Midterm Exam Guide - Comprehensive Notes for the exam ( 16 pages long!)
5 Oct 2017
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Lecture 8: what is the cost of not taking opportunity eg. suburban development, not developing wet land into farm land all the benefit of the farm land. Willingness to accept compensation: how much would you be willing to give up something, how much would you be willing to receive in compensation for being exposed. Benefits to poor air quality: direct as measured by wtp or wta, can measure the change in economic value of the good or resource. Indirect potential loss in profit linked to environmental change. Cost benefit stages (# order: project/policy decision. Identify physical impacts of the project/policy: valuing impact, discounting of cost and benefit flows normalize dollars (year b/c inflation, applying net present value test, npv = delta benefit - delta costs, sensitivity analysis. Uses of cost benefit analysis: policy appraisal, environmental assessment, environmental damage claim is it worth rebuilding or pay compensation, setting taxes. Cost of life (ethical issues) vinyl chloride example.
