Australia's threatened species
Activity 3
Putting a value on a species
It is sometimes said that economics ignores things that cannot be valued in monetary terms.
- Write a paragraph suggesting ways in which the existence of an endangered species could be given a dollar value and compared quantitatively with other assets in our economy.
Teachers notes
When making decisions we are, deliberately or instinctively, weighing up the advantages and disadvantages of our actions. Often, we need to rank these. Essentially, many decisions concerning the economy or the environment are made using a cost-benefit analysis. To make cost-benefit analysis an accurate tool, we need to quantify some of the supposed benefits and costs more accurately, especially those related to the quality of the environment. To quantify, it may be important to give dollar values to things that are not normally priced. Also the analysis may need to be extended into the future so that long-term benefits can be included.
Posted April 1997.