Keywords: contingent, existence value, restoration cost, valuation method, willingness to pay, environmental resources
Defining existence values of environmental resources
Traditionally, the Contingent Valuation Method (CVM) is one of the most accepted techniques to assess non-use value of environmental goods, but it is being debated due to its validity and reliability are being quest. In general, it reveals an individual's willingness to pay for improvements of environmental goods through a virtual market but neglects the irreversibility of environmental damage. In this paper, we present a framework by incorporating irreversibility of environmental degradation for the assessment of non-use value of environmental resources. The results of our analysis show that the existence value goes up but generation debt falls when humans' demand elasticity is low. In contrast, if the irreversibility of environmental damage arising from human behaviour such as extraction of resources, development of a site, etc., increases then the existence value goes up and the generation debt is enlarged.