and nonconsumptive uses. In contrast, future, or expected, use may be defined as potential value of intended use.
Nonuse values generally refers to those attributes of a natural resource which are intangible or noneconomic. These values can sometimes involve aspects of a resource that are important to individuals even if they aren't directly using it. Although economists do not yet agree on the different components of nonuse values, Cicchetti & Wilde (1992) subdivided them into option and existence values. Option values consists of those values--in excess of expected use values--which an individual accrues just by knowing that the resource is available for future use. In addition, option demand involves the willingness to pay for retaining the possibility of future resource use. This demand may exist even in cases where no persons currently intend to use the resource. Under such circumstances there might even be little chance that the option will be exercised. With regard to the environment, for example, option demand may exist among persons who value the mere existence of biological or geomorphological variety. For example, there are people who--although they don't visit them--still value wilderness areas (Cicchetti & Wilde, 1992, pp. 1121-1125).
Existence values, on the other hand, involves the value accrued by knowing that other individuals are currently able to use a resource. Hence, existence value is vicarious. Furthermore, existence values may include both bequest and inherent value. Bequest value relates to knowing that future generations will be able to utilize a resource. Inherent value is very similar to option demand. It involves just knowing that the resource exists.
The occurrence of values other than use values was first hypothesized by Weisbrod (cited in Cicchetti & Wilde, 1994, pp. 1121-1125). Weisbrod described the characteristics of pure public goods. Such materials are typically purc...