scholarly journals The advantages of contingent valuation methods for benefit-cost analysis

Public Choice ◽  
1981 ◽  
Vol 36 (2) ◽  
pp. 235-252 ◽  
Author(s):  
David S. Brookshire ◽  
Thomas D. Crocker
Keyword(s):  
Cost Analysis ◽  
Contingent Valuation ◽  
Benefit Cost Analysis ◽  
Valuation Methods ◽  
Contingent Valuation Methods ◽  
Benefit Cost

scholarly journals Contingent Valuation: Is Some Number Better than No Number?

1994 ◽  
Vol 8 (4) ◽  
pp. 45-64 ◽  
Author(s):  
Peter A Diamond ◽  
Jerry A Hausman
Keyword(s):  
Cost Analysis ◽  
Willingness To Pay ◽  
Contingent Valuation ◽  
Damage Assessment ◽  
Survey Methodology ◽  
Market Outcomes ◽  
Benefit Cost Analysis ◽  
Benefit Cost ◽  
Embedding Effect ◽  
Better Than

Without market outcomes for comparison, internal consistency tests, particularly adding-up tests, are needed for credibility. When tested, contingent valuation has failed. Proponents find surveys tested poorly done. To the authors’ knowledge, no survey has passed these tests. The ‘embedding effect’ is the similarity of willingness-to-pay responses that theory suggests (and sometimes requires) be different. This problem has long been recognized but not solved. The authors conclude that current methods are not suitable for damage assessment or benefit-cost analysis. They believe the problems come from an absence of preferences, not a flaw in survey methodology, making improvement unlikely.

scholarly journals Ecotourism as a Means of Conserving Wetlands

2005 ◽  
Vol 37 (2) ◽  
pp. 463-474 ◽  
Author(s):  
Carlisle A. Pemberton ◽  
Kathleen Mader-Charles
Keyword(s):  
Cost Analysis ◽  
Contingent Valuation ◽  
Community Participation ◽  
Human Activity ◽  
Benefit Cost Analysis ◽  
The Caribbean ◽  
Benefit Cost ◽  
Nariva Swamp

The Nariva Swamp on the island of Trinidad in the Caribbean is being degraded due to increasing human activity. However, its conservation is desirable, as it is an internationally recognized wetland. The study examined an ecotourism project, with an emphasis on community participation, as a conservation approach to the Swamp, via benefit–cost analysis, where the benefits of conservation were measured by contingent valuation. Contingent valuation showed that the residents of Trinidad were willing to pay an average of $56 for conserving the Swamp. The analysis also showed that ecotourism represents an economically feasible use of ecologically fragile resources of this wetland.

scholarly journals Benefit-Cost in a Benevolent Society

2006 ◽  
Vol 96 (1) ◽  
pp. 339-351 ◽  
Author(s):  
Theodore C Bergstrom
Keyword(s):  
Decision Making ◽  
Cost Analysis ◽  
Public Goods ◽  
Contingent Valuation ◽  
Well Being ◽  
Welfare Economics ◽  
Benefit Cost Analysis ◽  
Family Decision ◽  
Family Decision Making ◽  
Benefit Cost

How should benefit-cost analysis account for the value that benevolent individuals place on others' enjoyment of public goods? When adding up the benefits to be compared with costs, should we sum the private valuations, the altruistic valuations, or something else? This paper argues that private valuations are appropriate if concern for the well-being of others respects their private preferences. The discussion has implications for family decision-making, welfare economics, and the design of applied contingent valuation studies.

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