1. Topics 4, 5, 6 If science is not enough, then what? Economics, Ethics, Politics

2. Topic 4: What is the environment worth? Discussion: Fri 9/7 & Mon 9/10 Homework Due: Wed 9/12

3. Questions for homework  What is the Illinois River worth?  What economic values can be placed on the river?  What is the benefit of placing such values? What are the difficulties?  EXPLAIN your answers.  Due Wednesday, September 12

4. Why place an “economic” value on the Illinois River?

5. Cost-Benefit Analysis  classic decision-making model  compares costs and benefits of plan alternatives (including doing nothing) hard numbers for a project graphed results of spending an increasing amount of money on an increasing benefit

6. CBA: Going on a date!

7. CBA Analysis  +’s  -’s

8. CBA Details  assumes values can be determined for direct monetary costs (may run into unforseen costs or savings) monetary benefits (not all may be realized or anticipated) indirect costs and benefits  non-economic factors  distribution of costs and benefits  standards must be agreed upon  internal vs. external costs & benefits

9. Assigning Values  tangible vs intangible  use value  option value – preserving for future  existence value  aesthetic value  cultural value  scientific value  educational value  techniques out-of-pocket cost willing-to-pay value cost to forego shadow pricing replacement cost

10. For Monday  Read pages 205-209, 214-222  Prepare to discuss What economic values does the Illinois River have?

11.  Groups Brainstorm & list Which can be assigned dollar values easily? Which cannot? (Why?) What is difficult to capture? Do we need that value to make good decisions?

12. Assigning dollar values.  What works  What doesn’t

13. Questions for homework  What is the Illinois River worth?  What economic values can be placed on the river?  What is the benefit of placing such values? What are the difficulties?  EXPLAIN your answers.  Due Wednesday 9/12