Abstract
The contingent valuation (CV) method is one of many economic valuation methods which can be used to estimate the benefits of environmental improvement. Presently, more than fifteen valuation methods are available to put a price on environmental goods (for an overview, see Mitchell and Carson, 1989). Some of these methods can be considered as potential alternatives to the CV method. This chapter reviews their advantages and disadvantages and compares them to the CV method.1
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Balkan, E. and Kahn, J. R. (1988) The value of changes in deer hunting quality: A travel cost approach, Applied Economics 20, 533–539.
Bennett, J. W. (1984) Using direct questioning to value existence benefits of preserved natural areas, Australian Journal of Agricultural Economics 28, 136–152.
Bergstrom, J. C., Dillman, B. L., and Stoll, J. R. (1985) Public environmental amenity benefits of private land: the case of prime agricultural land, Southern Journal of Agricultural Economics 17, 139–149.
Bergstrom J. C., Stoll, J. R., and Randall, A. (1990) The impact of information on environmental commodity valuation decisions, American Journal of Agricultural Economics 72, 614–621.
Brookshire, D. S., Randall, A., and Stoll, J. R. (1980) Valuing increments and decrements in natural resource service flows, American Journal of Agricultural Economics 62, 478–488.
Brookshire, D. S., Thayer, M. A., Schulze, W. D., and d’Arge, R. C. (1982) Valuing public goods: A comparison of survey and hedonic approaches, American Economic Review 72, 165–178.
Brookshire, D. S. and Crocker, T. D. (1981) The advantages of contingent valuation methods for benefit cost analysis, Public Choice 36, 235–252.
Carson, R. C. (1991) Constructed markets, in: J. B. Braden and C. D. Kolstad (eds.), Measuring the Demand for Environmental Quality, Elsevier, Amsterdam.
Cropper, M. L. and Freeman, A. M. (1991) Environmental health effects, in J. B. Braden and C. D. Kolstad (eds.), Measuring the Demand for Environmental Quality, Elsevier, Amsterdam.
Cummings, R. G., Brookshire, D. S., and Schulze, W. D. (1986) Valuing Environmental Goods: A State of the Arts Assessment of the Contingent Valuation Method, Rowman and Allanheld, Totowa.
d’Arge, R. C. and Shogren, J. E. (1988) Non-market asset prices: A comparison of three valuation approaches, in H. Folmer and E. van Ierland (eds.), Valuation Methods and Policy Making in Environmental Economics, Elsevier, Amsterdam.
d’Arge, R. C., Schulze, W. D., and Brookshire, D. S. (1980) Benefit—cost valuation of long term future effects: The case of CO2, Paper presented at the Resources for the Future/National Climate Program Office Workshop, Fort Lauderdale.
Desvouges, W. H., Smith, V. K., and McGivney, M. P. (1983) A comparison of alternative approaches for estimation of recreational and related benefits of water quality improvements, Report No. EPA–230–05–83–001, U.S. Environmental Protection Agency, Washington, D.C.
Dickie, M., Gerking, S., Brookshire, D. S., Coursey, D. L., Schulze, W. D., Coulson, A., and Tashkin, D. (1987) Reconciling averting behaviour and contingent valuation benefit estimates of reducing symptoms of ozone exposure draft, in Improving Accuracy and Reducing Costs of Environmental Benefit Assessments, U.S. Environmental Protection Agency, Washington, D.C.
Dickie, M. and Gerking, S. (1989) Benefits of reduced morbidity from air pollution control: A survey, in H. Folmer and E. van Ierland (eds.), Valuation Methods and Policy Making in Environmental Economics, Elsevier, Amsterdam
Dickie, M., Gerking, S., and Agee, M. (1991) Health benefits of PMP control: The case of stratospheric ozone depletion and skin damage risks, in J. B. Opschoor and D. W. Pearce (eds.), Persistent Pollutants: Economics and Policy, Kluwer Academic Publishers, Dordrecht.
Farber, S. (1988) The value of coastal wetlands for recreation: An application of travel cost and contingent valuation methodologies, Journal of Environmental Management 26, 299–312.
Feenberg, D. and Mills, E. S. (1980) Measuring the Benefits of Water Pollution Abatement, Academic Press, New York.
Feenstra, J. F. (1984) Cultural Property and Air Pollution, Publication by the Ministry of Public Housing, Physical Planning and Environmental Management, Leidschendam, the Netherlands.
Fischoff, B. (1991) Value elicitation. Is there anything in there?, American Psychologist 46, 835–847.
Fishbein, M. and Ajzen, I. (1975) Belief Attitude, Intention and Behaviour, Addison-Wesley, Reading, Massachusetts.
Freeman, A. M. (1979) The Benefits of Environmental Improvement: Theory and Practice, John Hopkins University Press, Baltimore.
Graves, P. E. (1991) Aesthetics, in J. B. Braden and C. D. Kolstad (eds.), Measuring the Demand for Environmental Quality, Elsevier, Amsterdam.
Graves, P., Murdoch, J. C., Thayer, M. A., and Waldman, D. (1988) The robustness of hedonic price estimation: urban air quality, Land Economics 64, 220–233.
Green, C. H., Tunstall, S. M., N’ Jai, A., and Rogers, A. (1990) Economic evaluation of environmental goods, Project Appraisal 5, 70–82.
Hanley, N. D. (1988) Using contingent valuation to value environmental improvements, Applied Economics 20, 541–549.
Harford, J. D. (1984) Averting behaviour and the benefits of reduced soiling, Journal of Environmental Economics and Management 11, 296–302.
Harris, B. S. (1984) Contingent valuation of water pollution control, Journal of Environmental Management 19, 199–208.
Hoehn, J. P. and Randall, A. (1987) A satisfactory benefit cost indicator from contingent valuation, Journal of Environmental Economics and Management 14, 226–247.
Hoevenagel, R. and Verbruggen, H. (1989) De Waarde van het Milieu (The Monetary Value of the Environment). In Dutch. Institute for Environmental Studies, R/89–09, Amsterdam.
Jansen, H. M. A., van der Meer, G. J., Opschoor, J. B., and Stapel, J. H. A. (1972) An Estimate of Damage Caused by Air Pollution in the Netherlands in 1970,Institute for Environmental Studies, Series A, No. 8a, Amsterdam
Jansen, H. M. A. and Opschoor, J. B. (1973) Waardering van de Invloed van het Vliegtuiglawaai op Woongebied rond de Potentiële Locaties van de Tweede Nationale Luchthaven (Valuation of the Effects of Aircraft Noise on Residential Areas around the Potential Locations of the Second Dutch National Airport). In Dutch. Institute for Environmental Studies, Series A, No. 4 and 5, Amsterdam.
Jones-Lee, M. W., Hammerton, M., and Philips, P. R. (1985) The value of safety: Results of a national sample survey, Economic Journal 95, 49–72.
Kuik, O. J., Oosterhuis, F. H., Jansen, H. M. A., Holm, K., and Ewers, H. J. (1990) Assessment of Benefits of Environmental Measures,Institute for Environmental Studies, E-90/04, Amsterdam.
Lareau, T. J. and Rae, D. A. (1985) Valuing Diesel Odor Reductions: Results from a Philadelphia Survey, U.S. Environmental Protection Agency, Washington, D.C.
Linden van der, J. W. and Oosterhuis, E H. (1988) De Maatschappelijke Waardering voorde Vitaliteit van Bos en Heide (The Social Valuation of the Vitality of Forests and Heath). In Dutch, English summary. Publication by the Ministry of Public Housing, Physical Planning and Environmental Management, Leidschendam, The Netherlands.
Livengood, K. R. (1983) Value of big game from markets for hunting leases: The hedonic approach, Land Economics 59, 287–291.
Loomis, J. (1987) The economic value of instream flow: Methodology and benefit estimates for optimum flows, Journal of Environmental Management 24, 169–179.
Willer, K. G. (1974) Environmental Economics: A Theoretical Inquiry, The Johns Hopkins University Press, Baltimore.
McConnell, K. E. (1977) Congestion and willingness to pay: A study of beach use, Land Economics 53, 185–195.
McMillan, M. L., Reid, B. G., and Gillen, D. W. (1980) An extension of the hedonic approach for estimating the value of quiet, Land Economics 56, 315–328.
Mitchell, R. C. and Carson, R. T. (1989) Using Surveys to Value Public Goods: The Contingent Valuation Method, Resources for the future, Washington, D.C.
Mulligan, P. J. (1978) Willingness to pay for decreased risk from nuclear plant accidents, Working paper No. 43, Centre for the Study of Environmental Policy, Pennsylvania State University.
Navrud, S. (1989) Estimating social benefits of environmental improvements from reduced acid rain deposition: A contingent valuation survey, in H. Folmer and E. van Ierland (eds.), Valuation Methods and Policy Making in Environmental Economics, Elsevier, Amsterdam, pp. 69–102.
Opschoor, J. B. (1974) Economische Waardering van Milieuverontreiniging (Economic Valuation of Environmental Deterioration). In Dutch (English summary), Van Gorcum, Amsterdam.
Opschoor, J. B. (1987) Monetary valuation of environmental changes: A review of Dutch case studies and proposals for methodological research, paper presented at the Conference on Environmental Policy in a Market Economy, Wageningen, The Netherlands.
Payne, S. L. (1951) The Art of Asking Questions, Princeton University Press, Princeton.
Pearce, D. W. and Markandya, A. (1989) Environmental Policy Benefits: Monetary Valuation, OECD, Paris.
Pearce, D. W. and Turner, R. K. (1991) The use of benefit estimates in environmental decision-making, Draft Report, OECD, Paris.
Rahmatian, M. (1987) Component value analysis: Air quality in the grand Canyon National Park, Journal of Environmental Management 24, 217–223.
Randall, A., Ives, B. C., and Eastman, C. (1974) Bidding games for valuation of aesthetic environ- mental improvements, Journal of Environmental Economics and Management 1, 132–149.
Randall, A. (1991) Total and nonuse values, in J. B. Braden and C. D. Kolstad (eds.), Measuring the Demand for Environmental Quality, Elsevier, Amsterdam.
Reiling, S. D., Boyle, K. J., Philips, M. L., and Anderson, M. W. (1990) Temporal reliability of contingent values, Land Economics 66, 128–134.
Rowe, R. D. and Chestnut, L. G. (1984) Valuing Changes in Morbidity WTP versus COI Measures, Energy and Resource Consultants, Denver.
Rowe, R. D., d’Arge, R. C., and Brookshire, D. S. (1980) An experiment on the economic value of visibility, Journal of Environmental Economics and Management 7, 1–19.
Samples, K. C., Dixon, J. A., and Gowen, M. M. (1986) Information disclosure and endangered species valuation, Land Economics 62, 306–312.
Schechter, M. (1991) A comparative study of environmental amenity valuations, Environmental and Resource Economics 1, 129–155.
Schulz, W. (1986) Better air, how do we value it? A social demand analysis based on willingness to pay, Working Paper, OECD, Paris.
Schulze, W. D., Brookshire, D. S., Walther, E. G., Kelley, K., Thayer, M. A., Withworth, R. L., Ben-David, S., Malm, W., and Molenar, J. (1981) The benefits of preserving visibility in the national parks of the Southwest, Final Report, U.S. Environmental Policy Agency, Washington, D.C.
Schuman, H. and Kalton, G. (1985) Survey methods, in Lindzey and Aronson (eds.), The Handbook of Social Psychology, Vol. I, Random House, New York.
Seller, C., Stoll, J. R., and Chavas, J. P. (1985) Validation of empirical measures of welfare change: A comparison of nonmarket techniques, Land Economics 61, 156–175.
Smith, V. K., Desvouges, W. H., and Freeman, A. M. (1985) Valuing changes in hazardous waste risks: a contingent valuation approach, Draft Report to the U.S. Environmental Protection Agency, Research Triangle Institute, N.C.
Stoll, J. R. and Jonhson, L. A. (1985) Concepts of value, nonmarket valuation, and the case of the whooping crane, Article No. 19360, Department of Agricultural Economics, Texas A&M University.
Walsh, R. G., Miller, N. P., and Gilliam, L. O. (1983) Congestion and willingness to pay for expansion of skiing capacity, Land Economics 59, 195–210.
Author information
Authors and Affiliations
Editor information
Rights and permissions
Copyright information
© 1994 Springer Science+Business Media Dordrecht
About this chapter
Cite this chapter
Hoevenagel, R. (1994). A Comparison of Economic Valuation Methods. In: Pethig, R. (eds) Valuing the Environment: Methodological and Measurement Issues. Environment, Science and Society, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8317-6_10
Download citation
DOI: https://doi.org/10.1007/978-94-015-8317-6_10
Publisher Name: Springer, Dordrecht
Print ISBN: 978-90-481-4345-0
Online ISBN: 978-94-015-8317-6
eBook Packages: Springer Book Archive