Process / pipelineEnvironmental and Resource Economics
Contingent Valuation Method
Contingent Valuation (CVM), developed by Robert Davis in the 1960s, is a survey-based method for estimating the economic value of non-market environmental goods and services—such as wilderness preservation, air quality, or species protection—by directly asking people their willingness to pay (WTP) for specified improvements or willingness to accept (WTA) compensation for losses. It provides a valuation where market prices do not exist.
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Sources
- Mitchell, R. C., & Carson, R. T. (1989). Using Surveys to Value Public Goods: The Contingent Valuation Method. Resources for the Future. link ↗
- Arrow, K., Solow, R., Portney, P. R., Leamer, E. E., Radner, R., & Schuman, H. (1993). Report of the NOAA Panel on Contingent Valuation. Federal Register, 58(10), 4601–4614. link ↗
- Bateman, I. J., Carson, R. T., Day, B., Hanemann, M., Hanley, N., Hett, T., & Loomes, G. (2002). Economic Valuation with Stated Preference Techniques: A Manual. Edward Elgar. link ↗