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Contingent Valuation: Controversies and Evidence

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Author Info
Richard Carson
Nicholas Flores
Norman Meade

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Abstract

Contingent valuation (CV) has become one of the most widely usednon-market valuation techniques. CV's prominence is due to itsflexibility and ability to estimate total value, includingpassive use value. Its use and the inclusion of passive use valuein benefit-cost analyses and environmental litigation are thesubject of a contentious debate. This paper discusses key areasof the debate over CV and the validity of passive use value. Weconclude that many of the alleged problems with CV can beresolved by careful study design and implementation. We furtherconclude that claims that empirical CV findings are theoreticallyinconsistent are not generally supported by the literature. Thedebate over CV, however, has clarified several key issues relatedto nonmarket valuation and can provide useful guidance both to CVpractitioners and the users of CV results. Copyright Kluwer Academic Publishers 2001

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File URL: http://hdl.handle.net/10.1023/A:1011128332243
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 19 (2001)
Issue (Month): 2 (June)
Pages: 173-210
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Handle: RePEc:kap:enreec:v:19:y:2001:i:2:p:173-210

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  2. Reichhuber, Anke & Requate, Till, 2007. "Alternative Use Systems for the Remaining Cloud Forest in Ethiopia and the Role of Arabica Coffee - A Cost-Benefit Analysis," Economics working papers 2007,07, Christian-Albrechts-University of Kiel, Department of Economics. [Downloadable!]
  3. Andersson, Henrik & Svensson, Mikael, 2007. "Cognitive Ability and Scale Bias in the Contingent Valuation Method," Working Papers 2007:1, Swedish National Road & Transport Research Institute (VTI). [Downloadable!]
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  4. Svensson, Mikael & Vredin Johansson, Maria, 2007. "Willingness to Pay for Private and Public Safety: Why the Difference?," Working Papers 2007:2, Örebro University, Swedish Business School.
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  6. Ian J. Bateman & Michael P. Cameron & Antreas Tsoumas, 2006. "Investigating the Characteristics of Stated Preferences for Reducing the Impacts of Air Pollution: A Contingent Valuation Experiment," Working Papers in Economics 06/08, University of Waikato, Department of Economics. [Downloadable!]
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  12. Jon Strand, 2004. "Public-Good Valuation and Intrafamily Allocation," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  13. Bailey Norwood & Jayson Lusk, 2006. "Instrument-Induced Bias in Donation Mechanisms: Evidence from the Field," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 5(2), pages 1413-1413. [Downloadable!] (restricted)
  14. Raymond Y.T. Yeung & Richard D. Smith & Sarah M. McGhee, 2003. "Willingness to pay and size of health benefit: an integrated model to test for 'sensitivity to scale'," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 791-796. [Downloadable!]
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