Using economics in environmental management 
(or … what's economics got to do with the environment?)

Matt Hickman, Ministry for the Environment 

Abstract

The degradation of the natural environment and its impact on human health and the economy has been recognised for many years, dating back to the time of Malthus and his theory of population. Since the 1970s the development of environmental economics has formalised the connection between the environment and the economy.

Environmental economics very much sees the environment as an asset that provides a variety of services, including raw material, energy, and the receiver of waste products. The state of the environment, therefore, is very much seen as being fundamental to quality of life.

Various approaches are used to fully integrate the environment into decision making. The use of appraisal methods such as cost-benefit analysis has driven a need for the monetary valuation of the environment and human health impacts. The use of techniques such as contingent valuation and choice modelling are becoming increasingly used in New Zealand following extensive use in the US, UK and Australia.

This seminar will set out this approach to managing the environment and demonstrate how useful a structured economic approach can be in helping make fully informed decisions.

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