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Environmental and Resource Economics

, Volume 29, Issue 4, pp 419–433 | Cite as

Sequencing and the Adding-up Property in Contingent Valuation of Endangered Species: Are Contingent Non-Use Values Economic Values?

  • Knut Veisten
  • Hans Fredrik Hoen
  • Jon Strand
Article

Abstract

This paper presents tests of the theoretical validity of the contingent valuation (CV) method. The validity of CV is especially a concern when involving environmental goods with a predominant non-use value. One test of theoretical validity is the adding-up property that implies that a specific good should be equally valued irrespectively of it is being valued directly or built-up sequentially. In this CV study four independent sub-samples stated willingness to pay for the same composite good, or package, using different sequences. One sub-sample valued the composite good directly, while two sub-samples faced built-up sequences valuing first subsets of this composite good. A fourth sub-sample valued the composite good from a dividing-out approach, facing first the valuation of a larger multi-package. Theoretically expected sequencing effects were observed; the subset goods obtained higher values earlier in a sequence, and the dividing-out approach decreased the stated value for the composite good. Most importantly, these CV data did pass the tests of the adding-up property.

Keywords

adding-up property contingent valuation endangered species non-use sequencing 

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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  1. 1.Department of Ecology and Natural Resource ManagementAgricultural University of NorwayÅsNorway
  2. 2.Institute of Transport EconomicsOsloNorway
  3. 3.Department of Economics University of OsloOsloNorway

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