Environmental impact Economic Valuation

Traditionally, market failures have been considered as the reason why the full assessment of the economic dimensions of environmental impacts is difficult to include in the economic analysis of projects. Three broad issues are briefly discussed: (i) externalities, (ii) market failures, and (iii) irreversibility-particularly to clarify confusion between the first two. In addition, important issues in the economic evaluation of environmental impacts of development projects include measures for identifying and screening impacts, valuation of environmental benefits and costs, and integration of these considerations into the economic analysis of projects.