Non-Demand Curve Approaches
Opportunity Costs	Are costs that are estimated with reference to real markets, e.g one of the opportunity costs associated with the dam illustrated earlier might be the loss of productive farm land. This value can be calculated from agricultural data and current market prices for crops.
Costs of Alternatives	This method looks at the cost of replacing the "lost" amenity, i.e. how much would it cost to use some alternative resource, for example wetlands are sometimes known as the "Kidneys" of the planet. They have an ability to clean contaminated water, if a project to build a new road required the removal of a wetland, the method of alternative costing would look at how much it would cost to clean the same volume of water using modern technology.
Shadow Projects	In this technique rather than looking at a technological replacement to the lost amenity the cost of setting up the same amenity at another location is calculated. (asset transplantation) For example the transplant of an endangered meadow to an alternative site in order to prevent the damage incurred by a new road development, the transplant costs then become part of the cost of the development. Alternatively a new meadow entirely could be set up (asset reconstruction) or an environmentally damaged area could be improved to provide meadow habitat (asset restoration) and those costs calculated.
Government payments	In areas where government schemes to protect the environment are already in progress, developments may use these economic instruments to support the costing process. For example where farmers are paid subsidies to leave certain area's of their land fallow in order to protect local wildlife or to reduce soil erosion this goes someway towards indicating the land value. Projects to further enhance or protect areas like this may use these costs to indicate whether the cost of the investment is an economically efficient allocation of local authority funds.
Task 5. What is the dose-response method of pricing? Illustrate this method using an example incorporating land, air or water pollution
The various methods of accounting are constantly being updated and some or all of those described are currently being incorporated into government policy making and industrial project developments. This will inevitably filter through into the market environment.