Problem
Scenario:
For this question, assume you are a manager within a ?ctional Non-Government Agency {NGO), working within an imaginary Department of Environment and Development. Your department has been asked to evaluate a development proposal, the key features of which are as follows:
The development is to build an advanced manufacturing plant that will produce Robotic Dolls. These products are expected to be in high demand for many years into the future, and the development is expected to be highly profitable. Thus bene?ts of building this factory include providing secure employment for the workers and delivering a stream of dividend payments to the shareholders.
The development will be located in a region of pristine rainforest, at a site located on the banks of a river. The river flows out to the Ocean, discharging very close to a World Heritage listed marine park which provides the home for many fish and turtle species found nowhere else in the world. On the edge of the rainforest there is an eco-friendly tourism resort that attracts visitors from all over the world. The rainforest is also home to a tribe of native peoples who have practiced their culture here for many thousands of years, and also offer cultural experiences (bush tucker and dancing exhibitions) to tourists.
For the development to take place a signi?cant area of the rainforest, on the bank of the river, would need to be cleared to make space for the factory itself and related infrastructure such as access roads.
Task
A. Raise two valuation methods or mix of methods that would be appropriate for estimating a value of the rainforest in its current undeveloped state. Define each method with whether this is a revealed or stated preference method, and whether it is a direct or indirect valuation method.
B. For the above question, could you explain why it is appropriate to use in this circumstance for each method, referring back to the TEV framework as appropriate?
C. For each method suggested, could you explain how to apply it in this circumstance, including explaining the data you would need to collect and how you would go about doing this?
D. Rank the two valuation methods and justify why you think your preferred option would be more appropriate than your less preferred option.