Non-use values, also referred to as Òpassive
useÓ values – values that
are not associated
with actual use, or even the option to use a good or service.
Opportunity Cost – The value of
the best alternative to a given choice, or the value of resources in their next best
use. In regard to time, the opportunity cost of time spent on one
activity is the value of the best alternative
activity that the person might engage in at that time.
Option value – the value
that people place on having the option to enjoy something in the future, although they
may not currently use it.
Producer surplus – the
difference between the total amount earned from a good (price times quantity sold) and the
production costs.
Public goods – goods that
may be enjoyed by any number of people without affecting other peoplesÕ enjoyment. For example,
an aesthetic view is a pure public good. No matter how
many people enjoy the view, others can also enjoy it.