nonuse

Nonuse refers to the value or attitude toward a resource independent of direct use. In environmental economics, nonuse value describes the willingness to pay to preserve a resource even if the observer does not intend to use it.

Nonuse value includes several forms, notably existence value, bequest value, and option value. Existence value is the value of simply knowing a resource exists. Bequest value is the value of preserving it for future generations. Option value is the value of maintaining the possibility of future use, should circumstances or preferences change.

Measured nonuse values are typically estimated through stated preference methods, such as contingent valuation or discrete choice experiments. Revealed preference approaches are less suitable, because nonuse value is not directly observed through current market transactions.

Nonuse values are applied in cost-benefit analyses for conservation, biodiversity protection, protected areas, and other public goods like clean air and water. They help policy makers weigh conservation and ecological protection against development or exploitation, reflecting a broader set of societal benefits beyond direct use.

Critics contend that nonuse valuation relies on hypothetical scenarios and can be prone to biases, embedding effects, and scope sensitivity. Cultural variation and ethical considerations also complicate monetizing existence or preservation values. Despite these debates, nonuse valuation remains a central tool in environmental economics for recognizing the value of nature beyond immediate self-use.

See also: existence value, bequest value, option value, contingent valuation, environmental economics.