Price and Value in Env. Law: What’s a Polar Bear Worth?

Can you find a market price?

Two kinds of value: Use Value Marketed commodities (timber from forests, food fish) Nonmarketed commodities (hiking) Nonuse Values Option value Existence value Bequest value

Establishing Use Values Market price Appraisal Nonmarket methodologies (e.g., contingent valuation)

Option Value (nonuse) “I’m not a current user, but I might want to use it someday.” Options can have market value (stocks, real estate) but generally don’t for nonconsumptive uses

Existence Value (nonuse) “I’m not using it, I’m not going to use it, but just knowing it’s there makes me feel better.” Existence has some social value (e.g., endangered species), but there is no market for it (except contributions to enviro organizations?)

Bequest Value (nonuse) “I don’t use it, I won’t use it, and I don’t personally care whether it’s there—but I’d like to pass it on to future generations.” Property law suggests that we do favor at least some bequest values, but there are no markets.

Missing from these definitions: Biocentric value (e.g., “animal rights”) Ecosystem services

SO, WHAT IS THE VALUE OF POLAR BEARS?