Journal of Economics and Economic Education Research (Print ISSN: 1533-3590; Online ISSN: 1533-3604)

Abstract

Necessity of Effective Economic Valuation of Environmental Resources

Author(s): Ahmad Fatahi, Foad Eshghi, Roya Amirhajilo

Valuation is one of the most important approaches in order to reducing destruction of natural resources and the environment. However the economic approaches can’t determine overall functional value of the environment, but also they denote the importance of more valuation in order to determine the priority of resource utilization. As well as the average prices increase, yearly valuation in most developing countries doesn’t work anymore, because it has high inflation rate and decreases each year. Purpose of this study was to use dollar and gold rates as two essential agents for estimate the value of natural resource. EVIEWS and Shazam software were used for the parameter estimation of the model. The results showed that valuation of gold and dollar are equal over time, so increase the prices, increase natural resources value and decrease the overuse of them. To this end, we can use a universal unit, for checking the value of natural resources and environmental products, which firstly approved in other countries and secondly; its value doesn’t decreases over time. This is especially effective in comparing valuation of different places in various times. This study’s results suggest that in past six years, discounted money’s value of country was 96.2 and this value for gold and dollar was 3.36 and 3.23, respectively. From the little difference between the value of money and the dollar and gold, we can conclude that dollar and gold’s rate can be more effective than monetary value. So that, this method, we can compare different resources values in different countries and at different years easily.