ENST 387 2 EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
What is the main challenge in assigning value to environmental resources? - ANS the
challenge lies in the connection to life, making it considered priceless
what is the difference between value and price in environmental economics? - ANS value is
based on utility and price is based on scarcity
what are the two perspectives on the rights to clean air? - ANS anthropocentric views
prioritize human benefits while biocentric views consider the intrinsic value of nature
what is total economic value of a resource? - ANS the sum of the different use and nonuse
values
use values: direct use and indirect use value
nonuse values: option, bequest, and existence value
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, what is the maximum willingness to pay (WTP)? - ANS the economic value that people obtain
from a specific resource, the highest price a person is willing to pay for a product/service, the
sum of the use, nonuse and option value
what is the use value? - ANS WTP for direct use of the environmental resource, within
contains the direct use value and the indirect use value
what is the nonuse value? - ANS individual WTP to preserve a resource that he/she will never
use, within it contains: option, bequest, and existence value
what is option value? - ANS willingness to pay for the future ability to use the environment
ex: future recreation, potential pharmaceuticals
what is the willingness to accept (WTA)? - ANS the minimum amount of money people would
accept as compensation for an action that reduces their utility, the minimum amount of $
someone would accept that would give up a good/service which measures how much someone
values something they already possess
what is the direct-use value? - ANS obtained when we make a deliberate decision to use a
natural resource
ex: timber, non-timber products, hiking, hunting
what is an indirect-use value? - ANS tangible benefits obtained from nature without any
effort on our part
ex: soil erosion control, flood protection, carbon storage
what is a bequest value? - ANS value that one places on a resource because he/she wishes it
to be available for future generations
ex: forest available for future generations
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS GRADED A+ 2025/2026
What is the main challenge in assigning value to environmental resources? - ANS the
challenge lies in the connection to life, making it considered priceless
what is the difference between value and price in environmental economics? - ANS value is
based on utility and price is based on scarcity
what are the two perspectives on the rights to clean air? - ANS anthropocentric views
prioritize human benefits while biocentric views consider the intrinsic value of nature
what is total economic value of a resource? - ANS the sum of the different use and nonuse
values
use values: direct use and indirect use value
nonuse values: option, bequest, and existence value
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, what is the maximum willingness to pay (WTP)? - ANS the economic value that people obtain
from a specific resource, the highest price a person is willing to pay for a product/service, the
sum of the use, nonuse and option value
what is the use value? - ANS WTP for direct use of the environmental resource, within
contains the direct use value and the indirect use value
what is the nonuse value? - ANS individual WTP to preserve a resource that he/she will never
use, within it contains: option, bequest, and existence value
what is option value? - ANS willingness to pay for the future ability to use the environment
ex: future recreation, potential pharmaceuticals
what is the willingness to accept (WTA)? - ANS the minimum amount of money people would
accept as compensation for an action that reduces their utility, the minimum amount of $
someone would accept that would give up a good/service which measures how much someone
values something they already possess
what is the direct-use value? - ANS obtained when we make a deliberate decision to use a
natural resource
ex: timber, non-timber products, hiking, hunting
what is an indirect-use value? - ANS tangible benefits obtained from nature without any
effort on our part
ex: soil erosion control, flood protection, carbon storage
what is a bequest value? - ANS value that one places on a resource because he/she wishes it
to be available for future generations
ex: forest available for future generations
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
