Bibliography: p. 219-228. / The two environmental decision-making approaches of environmental economics (EE) valuation and multi-criteria decision analysis (MCDA) differ fundamentally in their underlying philosophies and approach; hence they are characterised as paradigms. The EE paradigm includes the idea that, if appropriate prices can be found and implemented for goods not normally traded on the market, then the market mechanism will efficiently distribute resources and decisions are therefore based on the concepts of individual willingness to pay and consumer sovereignty. That an efficient market is not necessarily equitable or sustainable has long been acknowledged, but EE adjustments are subject to theoretical and methodological problems. The MCDA paradigm is based on the idea that values and preferences should be examined and constructed through interaction between workshop participants and the analyst, given basic measurement theory axioms. Various EE and MCDA methods have been devised for measuring value in different contexts, some of which were applied, in the context of environmental (particularly water resources) management, in six action research case studies. The EE methods were contingent behaviour valuation, the contingent valuation method, conjoint analysis and the travel cost method. The MCDA method was a version of the simple multi-attribute rating technique (called SMARTx). In the SMARTx cases, applying a group-value sharing model during a series of workshops, stakeholders rated the effect of alternatives on a number of environmental, social and economic attributes directly or using value functions and gave weights to criteria. Indirect compensatory values of one criterion in terms of another were determined. In the EE cases, survey respondents were asked their travel costs, preference for multi-attribute profiles and willingness to pay for alternatives. Total and average willingness to pay for an amenity, its attributes or changes in environmental quality were determined. The practical and theoretical implications of applying the different methods were examined and compared in terms of four metacriteria: resonance with and validity within the prevailing political and decision-context, general validity and reliability, ability to include equity and sustainability criteria and practicality.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uct/oai:localhost:11427/13955 |
| Date | January 2002 |
| Creators | Joubert, Alison Ruth |
| Publisher | University of Cape Town, Faculty of Science, Department of Statistical Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Doctoral Thesis, Doctoral, PhD |
| Format | application/pdf |
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