A New Approach to Environmental Valuation for New Zealand

Abstract

New Zealand’s Resource Management Act is frequently criticised for the costs and delays it imposes on activities, but less attention is given to the consistency of values it applies to environmental effects through its decisions. The wide variety of parties who exercise decision roles under the act lack guidance on the economic value of the environment, and non-market valuation studies are too costly to be widely used and too few and varied to infer reliable generic values. Drawing on experience in estimating the public value of safety improvements, this article proposes an alternative approach that measures people’s aversion to the risk of environmental impacts of different scales and severity which could yield values sufficiently generic to be widely used, and outlines its uses both within and beyond the RMA applications.