Economic Assessment of Natural Resource Damages

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Understand the monetary value of natural resource damages

Non-market or "intangible" damages present a category with the widest spread of potential monetary losses, where often no quantification technique exists for use in resource damage litigation. Exponent is a national leader in Natural Resource Damage Assessment (NRDA) and provides clients with a broad range of economic support on resources damage claims.

How does Exponent help clients assess economic value on damage to natural resources? 

Exponent helps clients develop a thorough understanding of the relationship between natural resource attributes and monetary damages. Natural resource damage claims are especially important because they are a potential environmental liability that extends beyond cleanup or response actions.

Damage claims sought by government trustees or tribes can be very large, and settlement or litigation costs can be correspondingly high. Exponent's multidisciplinary approach pairs specialists in ecology, toxicology, chemistry, and environmental engineering with consultants experienced in applied ecological sciences and natural resource economics to assist clients in monetizing natural resource damages.

While some damage categories are easily quantifiable, others are not. Resource damages can be classified into market-based losses (losses with available commercial values) and non-market losses (losses with values not fully captured by the market system). Cleanup and response costs and resource losses with commercial values are relatively straightforward to quantify. However, non-market losses pose a significant challenge in the economic assessment of damages. Those losses typically include decreased ecological value provided by wildlife habitat as well as diminished recreational benefits and public enjoyment of natural resources.

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