In this chapter we discussed five commonly used techniques for measuring the monetary values of avoided environmental damages (benefits): market pricing; replacement cost; hedonic price; household production function (which includes the travel-cost and aversive expenditures); and contingent valuation. Below, you are given a hypothetical situation in which environmental damage of some aspect of the natural world has occurred.

For each of these cases choose the best technique(s) to estimate the cost of the damage in question, and provide a brief justification for your choice of the particular technique(s).

(a) Excessive soil erosion due to deforestation.

(b) Decline in property values due to groundwater contamination.

(c) Excessive noise from a nearby industrial complex.

(d) Damage to the scenic value of a lakeshore due to eutrophication.

(e) The provision of flood control services by wetland ecosystems.

(f) Loss of habitats for rare plant species due to a development project affecting ecologically sensitive wetlands.