Investing in Nature: Assessing the Effects of Monetary and Non-Monetary Valuations on Decision-Making

Ambika Markanday, Bosco Lliso and Alevgul H. Sorman

Ecological Economics, 2024, vol. 219, issue C

Abstract: There is widespread debate over how best to consider and integrate nature's diverse value dimensions into decision-making over natural resources. Following an experimental approach, this study tests the impact of a monetary versus non-monetary framing on conservation preferences relating to (hypothetical) mountain and wetland sites in the Basque Country (Spain). The experiment also examines whether these framings evoke different levels of cognitive and experiential reasoning. The experiment was conducted online and had 305 participants from the Basque Country. Findings show that while participants believed non-monetary information (i) better reflects the value of nature, (ii) is more useful than monetary information for environmental decision-making, and (iii) scored it higher in terms of whether the information provided was sufficient to make an informed decision, monetary valuation had a greater pull in determining the actual allocation of the conservation budget. This result has important consequences as it demonstrates that exposure to different forms of information may unwittingly have a significant impact on decision-makers' judgement in management and policy decisions.

Keywords: Environmental decision-making; Nature conservation; framed experiment; total economic value; Ecosystem services (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:219:y:2024:i:c:s0921800924000326

DOI: 10.1016/j.ecolecon.2024.108135

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