Quantification of Environmental Damages in Large-Scale Environmental Disasters
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September 03, 2024
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First published by Essex Court Chambers Barristers on 25 July 2024. The entire article is available at https://essexcourt.com/publication/quantification-of-environmental-damages-in-large-scale-environmental-disasters/
This jointly-authored article explores the complex task of quantifying environmental damages in large-scale environmental disasters. In Part One, barristers Angeline Welsh KC and Grace Ferrier from Essex Court Chambers consider what can be gleaned from the limited jurisprudence on the approach that courts may take to valuing environmental damage. In Part Two, expert economists Ravi Kanabar and Dr Meloria Meschi from FTI Consulting introduce the fundamental concepts, frameworks and techniques used by economists to place a monetary value on environmental assets and explain their merits and limitations.
We discuss the Total Economic Value (“TEV”) framework, which captures both use and non-use values of environmental assets, and the Ecosystem Services approach, which focuses on the benefits provided by ecosystems to humans. We describe the components of the calculation of compensatory damages, and then examine the various techniques used to quantify these components, including revealed preference analysis, stated preference analysis and value transfer methods. We emphasise the need for a multidisciplinary approach, combining legal and economic expertise, to develop robust, case-specific valuations that address the unique complexities of each disaster.
Authors: Dr. Meloria Meschi, Ravi Kanabar, Angeline Welsh KC, Grace Ferrier
Published
September 03, 2024
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