ENVIRONMENTAL VALUATION PRACTICES AND CHALLENGES IN MALAYSIA: A REVIEW OF METHODS AND POLICY IMPLICATIONS
DOI:
https://doi.org/10.21837/pm.v24i41.1984Keywords:
Environmental valuation, Valuation method, Valuation practices, Real estate, Built environment, SustainabilityAbstract
This study highlights the critical role of environmental valuation in informing sustainable development in Malaysia, focusing on its role in assessing the economic value of environmental goods and services. Environmental valuation is crucial for providing policymakers and stakeholders with essential information to conserve and manage natural resources effectively. The study identified four primary environmental valuation methods used in Malaysia: Travel Cost Method (TCM), Contingent Valuation Method (CVM), Cost-Benefit Analysis (CBA), and Willingness to Pay (WTP). TCM emerged as the most frequently applied method due to its simplicity and effectiveness in estimating recreational benefits derived from ecosystems, while CVM was employed to gauge public willingness to pay for conservation. The study also highlighted several challenges faced by valuers, including difficulties in obtaining reliable data, identifying appropriate sampling methods, constructing effective questionnaires, time constraints, and determining suitable valuation techniques. Strengthening policy frameworks for environmental valuation is vital to enhance the adoption of accurate methods and improve valuation practices in Malaysia. This research explores the challenges of environmental valuation practice in Malaysia that hinder the effective valuation practices.
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