Abstract |
Two methods were developed to include intangible, nonmonetary benefit valuations within traditional cost-benefit analyses. Each method was demonstrated for the Upper Skagit River Basin (a currently developed basin) and for the Sauk-Suiattle River Basin (a currently wild river), two adjacent basins in the State of Washington. The Benefits Foregone--Subjective Decision Method requires (1) estimates of monetary benefits for proposed levels of basin development (including the river left wild as one alternative), (2) values for two coefficients in a parabolic equation expressing change of intangible, nonmonetary benefits with increased development, and (3) comparison of total benefits to costs (evaluated independently) to indicate the optimum development level. The Nonmonetary Expression of Benefits Method requires monetary benefits and costs just as in the first method, but nonmonetary benefits are calculated as percentages (up to 1000%) of the identifiable monetary benefits. These percentages are derived from multipliers supplied for each potential water use group or development purpose. The demonstrations for each method indicated that the Sauk-Suiattle River should be left wild, while the Skagit River should be even more fully developed. The research showed that meaningful intangible benefit evaluation is not particularly difficult. (Author) |