Advantages of the Productivity Method
¥ In general,
the methodology is straightforward.
¥ Data requirements are limited, and the relevant data may be
readily available, so the
method can be relatively inexpensive to apply.
¥
Issues and
Limitations of the Productivity
Method
¥ The method is
limited to valuing those resources that can be used as inputs in production of marketed goods.
¥ When valuing an ecosystem, not all services will be related
to the production of marketed
goods. Thus, the inferred value of that
ecosystem may understate its true
value to society.
¥ Information is needed on the scientific relationships between
actions to improve quality or
quantity of the resource and the actual outcomes of those actions. In some
cases, these relationships may not be well known or understood.
¥ If the changes in the natural resource affect the market
price of the final good, or the
prices of any other production inputs, the method becomes much more complicated and difficult to apply.