This article was originally published on GOV.UK.

“Economists across government are used to analysing the costs and benefits of options to help policy-makers. For example, assessing the revenues that can be raised from tax changes and the costs this might impose on the public – all of those costs and benefits are represented by market prices in the economy.

In the arena of transport, that thinking is extended – market prices provide costs for new infrastructure, but analysts also use techniques to put a monetary value on the time savings that might emerge for users of a new transport system. Yet people can feel sceptical of economists using these approaches when considering environmental decisions – how can we place a value on clean air, a beautiful landscape, or fresh water – our natural capital? In fact, isn’t attributing such values wrong?…”

Read on at: GOV.UK.