APPLIED ENVIRONMENTAL ECONOMICS

This publication aims to assess the external cost and external benefit caused by the degradation or upgrading of public, environmental and non-market goods respectively. Thus, it constitutes a comprehensive research effort of codification and systematic recording of non-market goods from a wide range in the Greek area. The resulting results lead to the functional determination of the market demand curve and the market supply curve for the above goods. The resulting conclusions aspire to be a primary guide for the tax administration, in order toknow the intention of citizens to accept a financial burden in order to enjoy public goods or services. Pricing a public good is a challenge due to the lack of marketability of the good. As non-tradable, such a good cannot be valued in terms of supply and demand. On the other hand, valuation is necessary, since a number of social and economic parameters are affected and in turn affect costs and values of marketable goods. Such parameters are taxation, management and protection of the environment, utilization of natural and social resources. The provider of a public good – usually the state – must rationally and correctly value its value in monetary units to avoid failures that can have catastrophic consequences in terms of capital loss or failure to protect the good provided, resulting in its final loss. The man-made urban and peri-urban environment replaces the natural landscape, creates economic values, cultural heritage monuments, industrial and commercial activities, waste and external costs. The valuation of the above non-market goods aims to optimize social welfare by minimizing the external environmental cost, calculated as the sum of individual private economic and socio-economic factors and with a view to upgrading the standard of living in both urban and peri-urban environments within the framework of the Circular Economy (Cycle Economy) and Industrial Ecology.