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Natural Resource Damage Assessment: Methods and Cases

Natural Resource Damage Assessment: Methods and Cases

of the resources

of the resources damaged, and shows that compensation tables were the most frequently used tool for damage assessment. Habitat equivalency analysis and market price methods were the second and third most frequently used methods. The frequency of use of sophisticated economic valuation methods was only about 20%. Two cases had used methods other than those discussed above, including the replacement cost method and the restoration planning approach. Figure 3.4 shows that the 29 cases considered here also involved damages to natural resources other than groundwater, such as surface water, wetlands, air, fish, wildlife, and cultural resources. Damage assessment methods often vary with the type of resource damaged. Some methods are more suitable for assessing damages to certain resources. For example, the travel cost method may be more suitable to measure damages to recreational values and surface water than to groundwater. Figure 3.5 shows that agencies have tended to use a greater variety of methods as the number of resources damaged increased. CV 9% averting exp. 4% HEA 16% travel cost 9% market price 11% other 4% 71 appraisal 4% own tool 34% benefits transfer 9% Figure 3.3 Frequency of Use of Alternative Methods for Groundwater Damage Assessment

Number of Cases 30 25 20 15 10 5 0 ground water surface water wetlands air fish wildlife recreation cultural other resources resources Figure 3.4 Frequency of Damage to Other Resources in Cases Involving Groundwater Number of Methods Used 8 7 6 5 4 3 2 1 0 0 2 4 6 8 10 Number of Resources and Uses Damaged Figure 3.5: Number of Assessment Methods Used by Number of Resources Damaged 72

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