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Natural Resource Damage Assessment: Methods and Cases

Natural Resource Damage Assessment: Methods and Cases

Hedonic price analysis:

Hedonic price analysis: This may be used to determine the value of non-marketed resources by an analysis of private market choices. The demand for non-marketed natural resources is thereby estimated indirectly by an analysis of wage rates or of commodities, such as houses, that are traded in a market. Travel-cost analysis: An individual's incremental travel costs to an area are used as a proxy for the price of the services of that area. Compensable value of the area to the traveler is the difference between the value of the area with and without a discharge or release. Regional travel cost models may be used. Averting behavior analysis: This method infers values from observation of how changes in the quality and quantity of natural resources induces changes (often “defensive” in nature) in human behavior. Contingent valuation: This includes a body of techniques that set up hypothetical markets to elicit an individual's economic valuation of a natural resource. This method can determine use values and explicitly determine option and existence values, and thus be used to determine lost values of injured natural resources. Conjoint analysis/contingent ranking: Stated preference methods that ask respondents to make choices between two or more resource alternatives (conjoint analysis) or rank multiple resource alternatives (contingent ranking) that differ in at least some of their attributes can be used to estimate the value of changes in the attributes of the alternatives. Habitat equivalency analysis (a.k.a. resource equivalency analysis): This is a common way to scale compensatory restoration projects. The goal is to ensure that the quantity of replacement services provided equals the quantity of lost services. Services are quantified in physical units and not valued in monetary terms. NOTE: Definitions are taken and/or adapted from the following sources: 1) U.S. Department of the Interior. 1996. U.S. Department of the Interior Natural Resource Damage Assessment Regulations, 43 CFR PART 11 (1995), as amended at 61 Fed. Reg. 20609, May 7, 1996. . 2) National Oceanic and Atmospheric Administration, Damage Assessment and Restoration Program. August, 1996. Specifications for Use of NRDAM/CME Version 2.4 to Generate Compensation Formulas. Guidance Document for Natural Resource Damage Assessment Under the Oil Pollution Act of 1990. 3) Wisconsin Department of Natural Resources. November, 2000. Lower Fox River and Bay of Green Bay: Summary of Basis of Natural Resource Damages Settlement among State of Wisconsin and Fort James Corporation. 4) CH2M Hill. February 2000. Phase II Final Report: Human Effects Analysis of the Multi-Species Framework Alternatives. Prepared for Northwest Power Planning Council. 5) National Oceanic and Atmospheric Administration, Damage Assessment and Restoration Program. December 1997. Natural Resource Damage Assessment Guidance Document: Scaling Compensatory Restoration Actions (Oil Pollution Act of 1990). 6) National Oceanic and Atmospheric Administration, Damage Assessment and Restoration Program. 2000. Habitat Equivalency Analysis: An Overview. 20

Survey of State Natural Resource Damages (NRD) Programs 1) Name of agency: ______________________________________________________________ 2) Person/office responding to the survey (name, office, telephone, email, address): 3) List other agencies/offices in your state with Trustee authority/activity: ______________________ 4) Does your state have independent state authority to address NRD issues? ___ yes ___ no 5) How many staff (in FTE) do you have working on NRD assessment and/or recovery? Economists: _____ Natural scientists: _____ Attorneys: _____ Other: _____ Total: ________ 6) What is your annual budget for NRD activity in the current fiscal year? Damage recoveries: $___________ State funds: $____________ Assessment costs recovered: $___________ Other: $____________ Total: $____________ 7) In what calendar year did your office begin its NRD activity? ______ 8) How many NRD cases did your office settle prior to 1995? ______ 9) From 1995 to the present, how many pre-assessment screens did you carry out? ______ Of those, how many cases met the criteria for potential further action? ______ Of those, how many cases do you actually intend to pursue further? ______ 10) Do you have any particular original, simplified method(s) for assessing natural resource damages that If so: is(are) designed especially for use by staff members of your office? (This could be a lookup table, decision-making protocol, computer program, etc.) (a) Briefly describe the method(s) in the space below. 21 ___ yes ___ no (b) Do you have documentation for that method that you would be willing to share with us for the purposes of our project? ___ yes ___ no (c) Please provide a name and contact information for any staff member who would be willing to talk further to us about the nature of the method(s) you have developed:

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