Economic valuation of the national park service phase 1b. An application of the contingent valuation method cvm for estimating the eco. Cv method first came into use in the early 1960s davis, 1963. Two standard references which discuss different cv techniques are cummings. A contingent valuation study of groundwater cleanup 1992 pdf 332 pp, 2 mb, 10011992, ee00a. Referendum format may reduce strategic bias, if referendum is.
The respondent is then asked to state the maximum amount she would be willing to pay for the good the valuation. This survey approach is termed the contingent valuation method because the interviewer poses questions within the context of a hy pothetical market. The dollar values obtained for the good or service are said to be contingent upon the nature of the constructed hypothetical or simulated market and the good or service described in the survey scenario. Economic benefits of reducing mercury deposition in minnesota. It is most commonly related to natural and environmental resources. Data for a primer on nonmarket valuation, chapter 9. The contingent valuation method is called contingent valuation because it uses information on how people say they would behave given certain hypothetical situations, contingent on being in the real situation. The results of contingent valuation analyses are often used for benefit transfer. Other stated preference methods are contingent behavior and conjoint analysis.
While these resources do give people utility, certain aspects of them do not have a market price as they are not directly sold for example, people receive benefit from a beautiful view of a mountain, but. There is however the practical problem that differences between the systems of indirect taxation ma ke it difficult. We will discuss tradeoff game method, costlesschoice method, and delphi method as part of contingent valuation approach. Pdf many of the goods and services provided by biodiversity and. An open space survey and referendum in corvallis, oregon. Economic valuation of the national park service phase 1b report. The method employed in this study is the widelyaccepted contingent valuation method cvm. Administering contingent valuation surveys in developing. Wtp data from four recent contingent valuation surveys.
Report to the attorney general of the state of alaska. The use of cv for estimating the value from the use or potential use of nonmarket goods is, while not without limits, less controversial than the application of cv to estimate the. Legal obstacles for contingent valuation methods in environmental litigation brian d. This method is more effective when the respondents are familiar with the environmental good or service and have adequate information on which to base their preferences.
In this paper i discuss some of the issues that have arisen and some of the lessons learned over the last i. Using the contingent valuation method for dollar valuations. The contingent valuation method cvm is a simple, flexible nonmarket valuation method that is widely used in costbenefit analysis and environmental impact assessment. A recent contingent valuation bibliography carson et al. Willingness to pay for social health insurance among informal. A methodological study nof risks from thm and giardia pdf 338 pp, 57 mb, 05011986, ee0012. This is due primarily to their purported advantages in avoiding many of the biases known to be inherent in other formats used in the contingent valuation cv method.
Introduction to contingent valuation using stata munich. To view pdf files, you will need adobe acrobat reader, available free of charge from adobes website. Comparing the travel cost method and the contingent valuation. Dissection of a contingent valuation survey, the appraisal journal.
Households willingness to pay for improved water supply. The cv method is a widely used nonmarket valuation method especially in the areas of environmental costbenefit analysis and environmental impact assessment 1 see mitchell and carson, 1989, cummings et al. Brief histories of cv can be found in portney 1994 and hanemann 1994. Using contingent valuation to explore willingness to pay for.
Method group valuation method forest good or service valued value captured affected population captured benefits of method limitations of method revealed preference methods market price those that are traded in markets, mainly resources e. Applying the contingent valuation method is generally a complicated, lengthy, and expensive process. Comparing the travel cost method and the contingent valuation method an application of convergent validity theory to the recreational value of irish forests introduction according to the department of agriculture and food and the irish council for science, technology and innovation, ireland is the least forested country in the eu with forests. Fat tails and truncated bids in contingent valuation. Welfare evaluations in contingent valuation experiments with discrete responses. Contingent valuation method, natural resource management, valuation.
Israel, jean martin, kelly smith fayne, and lauren daniel1 introduction contingent valuation surveys, and other stated preference methods, are sometimes used by economists to solicit opinions from the public regard. A methodological study nof risks from thm and giardia pdf 338. Key words contingent valuation method, demand assessment, ethics 1. In order to collect useful data and provide meaningful results, the contingent valuation survey must. Legal obstacles for contingent valuation methods in. Cvm is typically used to estimate the benefits or costs of a change in the level of provision or in the level of quality of a public. Contingent valuation of delays in medical services a contingent valuation of customer delay in medical services abstract in this study, the contingent valuation method, based on a survey of patients at medical practices, is used to estimate patients willingnesstopay to avoid delays in the reception area and the examination room. Benefit transfers with the contingent valuation method.
We use the contingent valuation cv method to estimate the cost of an environmental regulation targeting individuals. Its application in environmental economics includes estimation of nonuse values e. Health, valuation, benefit cost analysis this research was conducted under cooperative agreement 015 29528 with the u. Contingent valuation, a survey based method of determining the economic value of a nonmarket resource. When this elicitation method is used, the respondent is only required to answer. Dichotomous choice contingent valuation method dccvm.
A large number of research studies have used cv to estimate the value of. Methods used for the environmental valuation with diagram. Contingent valuation methodeconomists also estimate the value people place on their lives by just asking them. It focuses on contingent valuation method evaluation of the biodiversity of lake. Erratum for chapter 9 207 kb pdf file these corrections are for table 6 on page 321. The focus of this article is on this second approach, the contingent valuation method.
The use of contingent valuation in benefitcost analysis. A statedpreference estimation technique known as contingent valuation is employed. These methods are usually referred to as revealed preference methods and include the hedonic property method and the travel cost method. Section 3 describes the survey area while section 4 describes. Thus the valuation of loss of goods is to b e interpreted as valuation of the production factors input into these goods which are no longer available for other uses. The contingent valuation method cvm, a stated preference method, has proven to be a useful technique for uncovering the passive use values of forest quality. Request pdf contingent valuation method the contingent valuation method is a stated preference approach to environmental valuation.
The results show that bid price, household income and household size have statistically significant impact on wtp and. Douglass and harpman 2004 used the contingent valuation method to assess the value of recreation at lake powell and the glen canyon national recreation area. Valuation study of lost passive use values resulting from the exxon valdez oil spill. Valuing the implementation of financial literacy education. Pricing method that depends on customers responses to survey questions, such as what they are willing to pay for a benefit or feature, or what they would accept as a compensation if a certain benefit or feature was missing. Whittington 2002b, 323 notes that findings of many of the contingent valuation studies are inaccurate and unreliable and that there is a pressing need to improve the quality of cv studies in developing countries. Pdf this study is first of its kind for the region in question. Introduction ten years ago only a handful of very rudimentary contingent valuation studies had been conducted in developing countries. Can local communities in zimbabwe be trusted with wildlife. Pdf application of contingent valuation method in natural. Duffield 2006 estimates both use and nonuse values for national park.
The advantages of contingent valuation methods for benefit. Using contingent valuation to measure the economic impact of. This paper summarizes the long history of the contingent valuation method. Sequence effects in the valuation of multiple environmental. The contingent valuation method cvm has the potential to remedy this problem. A more difficult task is to determine at what monetary level individuals will support educational improvements. A postkakadu assessment 187 venture at coronation hill. Estimating the willingness to pay for water services in. This document provides the reader with the basic tools to obtain estimates of willingness to pay from a contingent valuation survey using stata. In order to collect useful data and provide meaningful results, the contingent valuation survey must be properly designed, pretested, and implemented. All three methods stem from applied welfare economics. However, this method is subject to severe criticism. Dichotomous choice contingent valuation questions have gained popularity over the last several years.
Valuing public goods using the contingent valuation method 0 ur national commitment to a cleaner and safer environment has persisted in the face of oil embargos, stagflation, concerns about economic competitiveness, and competing budgetary claims. Duffield 2006 estimates both use and nonuse values for national park system sites within the colorado river watershed. Using contingent valuation to estimate the value of forest. Contingent valuation and incentives forest service. Cv is a surveybased method primarily used to value nonmarket goods carson and hanemann 2005. Contingent valuation in communitybased project planning aerc. The contingent valuation method cvm is a widely used method for estimating economic values for all kinds of ecosystem services and environmental goods which are not traded in the market and hence have no market price. Dichotomouschoice contingent valuation when dichotomous choice questions are used, the researcher does not observe wtp directly. The study was undertaken with a view to providing value estimates to be incorporated into a benefitcost analysis of a proposal to allow mining to proceed. Cv surveys have become a popular way of estimating monetary value on nonmarketed goods.
First, the good and a hypothetical market in which the good can be bought are described to the respondent the contingency. You may need a pdf reader to view some of the files on this page. Contingent valuation method article about contingent. Portney t he contingent valuation method involves the use of sample surveys questionnaires to elicit the willingness of respondents to pay for generally hypothetical projects or programs. Combining contingent valuation and travel cost data for the. Contingent behavior uses hypothetical recreation trips to. Contingent valuation method cvm is a stated preference method since the respondents are asked to state their willingness to pay contingent on. We have argued that economists have erred in viewing the situations these methods posit as necessarily fictional. The cvm is one type of nonmarket valuation that economists commonly use to assess the values of natural resources that are not captured by traditional markets. The dichotomous choice contingent valuation method dccvm has been in the last years the most popular technique among practitioners of contingent valuation, due to its simplicity of use in data collection. The contingent valuation method cvm is another nonmarket valuation method. Highlights we conduct metaanalyses of the contingent valuation and hedonic pricing literature on the value of urban open space. It allows for the inclusion of several different aspects of natural resource value. Contingent valuation is a survey method to elicit the maximum wtp for a good.
A practical alternative when prices arent available rrichard t. Contingent valuation employs a survey in which the prospective policy and its effects are described. Was the noaa panel correct about contingent valuation. The travel cost method tcm has long been used to infer the economic value of nonmarket resources and public goods.
The cv method came to prominence in the 1980s and early 1990s as a. Contingent valuation, a survey method used to estimate nonuse and use values based on stated preferences contingent valuation studies seek to estimate peoples willingness to pay for a change in environmental quality. The preceding is a taxonomic discussion of some reasons why contingent market methods may often be a superior means of generating data with which to value nonmarket commodities. The contingent valuation method is a stated preference approach to the. Revealed preference tests of nonmarket goods valuation methods. A contingent valuation of customer delay in medical services.
Valuing drinking water risk reductions using the contingent. Using a multilevel model we find important regional differences in preferences for urban open space, which suggests that the potential for transferring. Contingent valuation method for general practitioners. Contingent valuation cv is a method to appraise the benefits a society receives from public goods. Under the open ended format, respondents are asked a question such as. Valuing the implementation of financial literacy education kimberlee davis and dorothy bagwell durband placing a monetary value on education is a complex task. Of course, this approach is a little bit more sophisticated than that. Contingent valuation method cvm has become an increasingly attractive method. We examine the physical, socioeconomic and study characteristics that influence the valuation of open space. Valuing drinking water risk reductions using the contingent valuation method. The problems associated with posing hypothetical ques. American journal of agricultural economics 662, 332341. The contingent valuation method was used to estimate.
Good practices for estimating reliable willingnesstopay. More recently, analysts have turned to another stated preference method, conjoint analysis. Bill mundy and david mclean, using the contingent value approach for natural resource and environmental damage applications, the appraisal journal july 1998. Contingent valuation is a surveybased economic technique for the valuation of nonmarket resources, such as environmental preservation or the impact of contamination. Contingent valuation results based on the cv results, we find that reported willingness to pay for renewable energy is somewhat sensitive to the payment method and provision arrangement.
787 442 881 683 136 199 1109 1311 248 193 575 352 328 1493 651 1400 757 64 551 424 1117 1016 1248 388 31 879 1481 439 86 1110 257 1212 695 588 587 490 145 271 1379 255 751 11 1402