A series of special techniques has been developed to value the benefits from environmental
improvement or, conversely; to value the damage done by environmental
degradation. Special techniques were necessary because most of the normal
valuation techniques that have been used over the years cannot be applied to environmental
resources. Benefit/cost analysis requires the monetization of all relevant
benefits and costs of a proposed policy or project. As such, it is important to make
sure a thorough analysis is conducted. The difficulties, however, are the monetization
of those enviromnental goods and services that are not traded in any market.
Even more difficult to grapple with are those nonmarket benefits associated with
passive use or nonnse value..