Economic analysis of environmental preferences: Progress and prospects

The purpose of this editorial is to review recent developments in the economic valuation of environmental variables - such as noise levels, air pollution and visual amenity. We begin by outlining the main assumptions that underpin valuation of environmental characteristics, and the types of techniques that are used for this purpose. Today, the availability of GIS is transforming many aspects of valuation practice, and here we discuss such issues as enhanced variable specifications, larger sample sizes, and the greater replicability of analyses. These developments, in turn, have increased the transferability of benefit parameters from one location to another. GIS also creates new opportunities to enhance spatial representations of the environmental impacts of policy decisions, something that is of particular relevance given the growing interest in matters of environmental equity as a component of sustainable development.

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