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Using Choice Experiments for Non-Market Valuation

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  • Peter Martinsson

    ()
    (Department of Economics, Göteborg University)

Abstract

This paper provides the latest research developments in the method of choice experiments applied to valuation of non-market goods. Choice experiments, along with the, by now, well-known contingent valuation method, are very important tools for valuing non-market goods and the results are used in both cost-benefit analyses and litigations related to damage assessments. The paper should provide the reader with both the means to carry out a choice experiment and to conduct a detailed critical analysis of its performance in order to give informed advice about the results. A discussion of the underlying economic model of choice experiments is incorporated, as well as a presentation of econometric models consistent with economic theory. Furthermore, a detailed discussion on the development of a choice experiment is provided, which in particular focuses on the design of the experiment and tests of validity. Finally, a discussion on different ways to calculate welfare effects is presented.

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Bibliographic Info

Paper provided by Economy and Environment Program for Southeast Asia (EEPSEA) in its series EEPSEA Special and Technical Paper with number sp200205t2.

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Date of creation: May 2002
Date of revision: May 2002
Handle: RePEc:eep:tpaper:sp200205t2

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Keywords: Choice experiments; non-market goods; stated preference methods; valuation;

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References

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