Project Analysis as Input to Public Debate: Environmental Valuation versus Physical Unit Indicators
Monetary valuation of environmental change is useful if one aims to rank alternative projects according to some specific social welfare function. However, if the project analysis is intended as background information to a democratic debate, the advantages of monetary valuation are less obvious. This paper analyzes aggregation of information, taking normative disagreement explicitly into account. It is demonstrated that monetary valuation is not always more informative than a physical unit measure of environmental change.