IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v143y2018icp97-104.html
   My bibliography  Save this article

Beyond Rationality, Towards Reasonableness: Enriching the Theoretical Foundation of Deliberative Monetary Valuation

Author

Listed:
  • Bartkowski, Bartosz
  • Lienhoop, Nele

Abstract

Economic valuation is often deemed an important source of information for land-use decisions. Stated preference (SP) methods are a particularly potent class of economic valuation methods, but they are also particularly controversial. In response to accumulating criticism of SP, deliberative monetary valuation (DMV) has been proposed as an alternative approach and has gained considerable attention in recent years. However, being a combination of elements from two theories – neoclassical welfare economics and theory of deliberative democracy – it lacks a convincing, consistent theoretical foundation. In our paper, we propose some clarifying adjustments regarding rationality assumptions and aggregation issues by drawing upon the work of Amartya Sen. We find that many of his ideas lead to a harmonisation of DMV's theoretical foundations, e.g. meta-rankings of preferences, impartial spectator and the plurality of impartial reasons.

Suggested Citation

  • Bartkowski, Bartosz & Lienhoop, Nele, 2018. "Beyond Rationality, Towards Reasonableness: Enriching the Theoretical Foundation of Deliberative Monetary Valuation," Ecological Economics, Elsevier, vol. 143(C), pages 97-104.
  • Handle: RePEc:eee:ecolec:v:143:y:2018:i:c:p:97-104
    DOI: 10.1016/j.ecolecon.2017.07.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800916308163
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ecolecon.2017.07.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kahneman, Daniel & Ritov, Ilana & Schkade, David A, 1999. "Economic Preferences or Attitude Expressions?: An Analysis of Dollar Responses to Public Issues," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 203-235, December.
    2. Sen, Amartya K, 1976. "Liberty, Unanimity and Rights," Economica, London School of Economics and Political Science, vol. 43(171), pages 217-245, August.
    3. de Groot, Rudolf & Brander, Luke & van der Ploeg, Sander & Costanza, Robert & Bernard, Florence & Braat, Leon & Christie, Mike & Crossman, Neville & Ghermandi, Andrea & Hein, Lars & Hussain, Salman & , 2012. "Global estimates of the value of ecosystems and their services in monetary units," Ecosystem Services, Elsevier, vol. 1(1), pages 50-61.
    4. Sen, Amartya, 2001. "Development as Freedom," OUP Catalogue, Oxford University Press, number 9780192893307, Decembrie.
    5. Fabian Scholtes, 2010. "Whose Sustainability? Environmental Domination and Sen's Capability Approach," Oxford Development Studies, Taylor & Francis Journals, vol. 38(3), pages 289-307.
    6. Sagoff, M., 1998. "Aggregation and deliberation in valuing environmental public goods:: A look beyond contingent pricing," Ecological Economics, Elsevier, vol. 24(2-3), pages 213-230, February.
    7. Wilson, Matthew A. & Howarth, Richard B., 2002. "Discourse-based valuation of ecosystem services: establishing fair outcomes through group deliberation," Ecological Economics, Elsevier, vol. 41(3), pages 431-443, June.
    8. Ami, Dominique & Aprahamian, Frédéric & Chanel, Olivier & Joulé, Robert-Vincent & Luchini, Stéphane, 2014. "Willingness to pay of committed citizens: A field experiment," Ecological Economics, Elsevier, vol. 105(C), pages 31-39.
    9. Jacinto Braga & Chris Starmer, 2005. "Preference Anomalies, Preference Elicitation and the Discovered Preference Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(1), pages 55-89, September.
    10. Bunse, Lukas & Rendon, Olivia & Luque, Sandra, 2015. "What can deliberative approaches bring to the monetary valuation of ecosystem services? A literature review," Ecosystem Services, Elsevier, vol. 14(C), pages 88-97.
    11. Richard B. Howarth & Matthew A. Wilson, 2006. "A Theoretical Approach to Deliberative Valuation: Aggregation by Mutual Consent," Land Economics, University of Wisconsin Press, vol. 82(1), pages 1-16.
    12. Nele Lienhoop & Marc Völker, 2016. "Preference Refinement in Deliberative Choice Experiments for Ecosystem Service Valuation," Land Economics, University of Wisconsin Press, vol. 92(3), pages 555-577.
    13. Neal Hockley, 2014. "Cost–Benefit Analysis: A Decision-Support Tool or a Venue for Contesting Ecosystem Knowledge?," Environment and Planning C, , vol. 32(2), pages 283-300, April.
    14. Arild Vatn, 2004. "Environmental Valuation and Rationality," Land Economics, University of Wisconsin Press, vol. 80(1), pages 1-18.
    15. Orchard-Webb, Johanne & Kenter, Jasper O. & Bryce, Ros & Church, Andrew, 2016. "Deliberative Democratic Monetary Valuation to implement the Ecosystem Approach," Ecosystem Services, Elsevier, vol. 21(PB), pages 308-318.
    16. Raymond, Christopher M. & Kenter, Jasper O., 2016. "Transcendental values and the valuation and management of ecosystem services," Ecosystem Services, Elsevier, vol. 21(PB), pages 241-257.
    17. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    18. Kenyon, Wendy & Nevin, Ceara, 2001. "The use of economic and participatory approaches to assess forest development: a case study in the Ettrick Valley," Forest Policy and Economics, Elsevier, vol. 3(1-2), pages 69-80, September.
    19. Spash, Clive L., 2007. "Deliberative monetary valuation (DMV): Issues in combining economic and political processes to value environmental change," Ecological Economics, Elsevier, vol. 63(4), pages 690-699, September.
    20. Macmillan, Douglas C. & Philip, Lorna & Hanley, Nick & Alvarez-Farizo, Begona, 2002. "Valuing the non-market benefits of wild goose conservation: a comparison of interview and group based approaches," Ecological Economics, Elsevier, vol. 43(1), pages 49-59, November.
    21. Völker, Marc & Lienhoop, Nele, 2016. "Exploring group dynamics in deliberative choice experiments," Ecological Economics, Elsevier, vol. 123(C), pages 57-67.
    22. Jonathan Aldred, 2006. "Incommensurability and Monetary Valuation," Land Economics, University of Wisconsin Press, vol. 82(2), pages 141-161.
    23. Clive L. Spash, 2006. "Non-Economic Motivation for Contingent Values: Rights and Attitudinal Beliefs in the Willingness To Pay for Environmental Improvements," Land Economics, University of Wisconsin Press, vol. 82(4), pages 602-622.
    24. James K. Hammitt, 2013. "Positive versus Normative Justifications for Benefit-Cost Analysis: Implications for Interpretation and Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(2), pages 199-218, July.
    25. Spash, Clive L. & Urama, Kevin & Burton, Rob & Kenyon, Wendy & Shannon, Peter & Hill, Gary, 2009. "Motives behind willingness to pay for improving biodiversity in a water ecosystem: Economics, ethics and social psychology," Ecological Economics, Elsevier, vol. 68(4), pages 955-964, February.
    26. Lo, Alex Y., 2013. "Agreeing to pay under value disagreement: Reconceptualizing preference transformation in terms of pluralism with evidence from small-group deliberations on climate change," Ecological Economics, Elsevier, vol. 87(C), pages 84-94.
    27. Vargas, Andrés & Lo, Alex Y. & Rohde, Nicholas & Howes, Michael, 2016. "Background inequality and differential participation in deliberative valuation: Lessons from small-group discussions on forest conservation in Colombia," Ecological Economics, Elsevier, vol. 129(C), pages 104-111.
    28. Amartya Sen, 1995. "Environmental Evaluation And Social Choice: Contingent Valuation And The Market Analogy," The Japanese Economic Review, Japanese Economic Association, vol. 46(1), pages 23-37, March.
    29. MacMillan, Douglas & Hanley, Nick & Lienhoop, Nele, 2006. "Contingent valuation: Environmental polling or preference engine?," Ecological Economics, Elsevier, vol. 60(1), pages 299-307, November.
    30. Szabó, Zoltán, 2011. "Reducing protest responses by deliberative monetary valuation: Improving the validity of biodiversity valuation," Ecological Economics, Elsevier, vol. 72(C), pages 37-44.
    31. Sen, Amartya, 2000. "The Discipline of Cost-Benefit Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 931-952, June.
    32. Christie, Mike & Hanley, Nick & Warren, John & Murphy, Kevin & Wright, Robert & Hyde, Tony, 2006. "Valuing the diversity of biodiversity," Ecological Economics, Elsevier, vol. 58(2), pages 304-317, June.
    33. Meinard, Yves & Grill, Philippe, 2011. "The economic valuation of biodiversity as an abstract good," Ecological Economics, Elsevier, vol. 70(10), pages 1707-1714, August.
    34. Kenter, Jasper O. & Bryce, Rosalind & Christie, Michael & Cooper, Nigel & Hockley, Neal & Irvine, Katherine N. & Fazey, Ioan & O’Brien, Liz & Orchard-Webb, Johanne & Ravenscroft, Neil & Raymond, Chr, 2016. "Shared values and deliberative valuation: Future directions," Ecosystem Services, Elsevier, vol. 21(PB), pages 358-371.
    35. Christie, Mike & Rayment, Matt, 2012. "An economic assessment of the ecosystem service benefits derived from the SSSI biodiversity conservation policy in England and Wales," Ecosystem Services, Elsevier, vol. 1(1), pages 70-84.
    36. Begoña Álvarez-Farizo & Nick Hanley, 2006. "Improving the Process of Valuing Non-Market Benefits: Combining Citizens’ Juries with Choice Modelling," Land Economics, University of Wisconsin Press, vol. 82(3), pages 465-478.
    37. Patrik Söderholm, 2001. "The Deliberative Approach in Environmental Valuation," Journal of Economic Issues, Taylor & Francis Journals, vol. 35(2), pages 487-495, June.
    38. K. J. Arrow & A. K. Sen & K. Suzumura (ed.), 2002. "Handbook of Social Choice and Welfare," Handbook of Social Choice and Welfare, Elsevier, edition 1, volume 1, number 1.
    39. Vatn, Arild, 2005. "Rationality, institutions and environmental policy," Ecological Economics, Elsevier, vol. 55(2), pages 203-217, November.
    40. Robert E. Goodin & John S. Dryzek, 2006. "Deliberative Impacts: The Macro-Political Uptake of Mini-Publics," Politics & Society, , vol. 34(2), pages 219-244, June.
    41. Geraldine Olson & Brigitte Schober, 1993. "The satisfied poor," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 28(2), pages 173-193, February.
    42. Thomas Dietz & Paul C. Stern & Amy Dan, 2009. "How Deliberation Affects Stated Willingness to Pay for Mitigation of Carbon Dioxide Emissions: An Experiment," Land Economics, University of Wisconsin Press, vol. 85(2), pages 329-347.
    43. Bromley, Daniel W., 2008. "Volitional pragmatism," Ecological Economics, Elsevier, vol. 68(1-2), pages 1-13, December.
    44. Vatn, Arild, 2009. "An institutional analysis of methods for environmental appraisal," Ecological Economics, Elsevier, vol. 68(8-9), pages 2207-2215, June.
    45. Simon Niemeyer & Clive L Spash, 2001. "Environmental Valuation Analysis, Public Deliberation, and their Pragmatic Syntheses: A Critical Appraisal," Environment and Planning C, , vol. 19(4), pages 567-585, August.
    46. Alex Y. Lo & Clive L. Spash, 2013. "Deliberative Monetary Valuation: In Search Of A Democratic And Value Plural Approach To Environmental Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 768-789, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. De Valck, Jeremy & Rolfe, John, 2019. "Comparing biodiversity valuation approaches for the sustainable management of the Great Barrier Reef, Australia," Ecosystem Services, Elsevier, vol. 35(C), pages 23-31.
    2. Mavrommati, Georgia & Borsuk, Mark E. & Kreiley, Allison I. & Larosee, Christopher & Rogers, Shannon & Burford, Klancey & Howarth, Richard B., 2021. "A methodological framework for understanding shared social values in deliberative valuation," Ecological Economics, Elsevier, vol. 190(C).
    3. Chad S. Boda & Turaj Faran & Murray Scown & Kelly Dorkenoo & Brian C. Chaffin & Maryam Nastar & Emily Boyd, 2021. "Loss and damage from climate change and implicit assumptions of sustainable development," Climatic Change, Springer, vol. 164(1), pages 1-18, January.
    4. Michael B. Wironen & Robert V. Bartlett & Jon D. Erickson, 2019. "Deliberation and the Promise of a Deeply Democratic Sustainability Transition," Sustainability, MDPI, vol. 11(4), pages 1-18, February.
    5. Lienhoop, Nele & Schröter-Schlaack, Christoph, 2018. "Involving multiple actors in ecosystem service governance: Exploring the role of stated preference valuation," Ecosystem Services, Elsevier, vol. 34(PB), pages 181-188.
    6. Lliso, Bosco & Pascual, Unai & Engel, Stefanie & Mariel, Petr, 2020. "Payments for ecosystem services or collective stewardship of Mother Earth? Applying deliberative valuation in an indigenous community in Colombia," Ecological Economics, Elsevier, vol. 169(C).
    7. Si Xie & Tianshu Li & Ke Cao, 2023. "Analysis of the Impact of Carbon Emission Control on Urban Economic Indicators based on the Concept of Green Economy under Sustainable Development," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    8. Yves Meinard & Olivier Cailloux, 2021. "Deliberation in Valuation and Decision Making: A Conceptual Clarification," Post-Print hal-03487127, HAL.
    9. Thomas Fickel, 2023. "An Agonistic Perspective on the Challenge of Biodiversity Value Integration," Sustainability, MDPI, vol. 15(24), pages 1-17, December.
    10. Wanek, Eva & Bartkowski, Bartosz & Bourgeois-Gironde, Sacha & Schaafsma, Marije, 2023. "Deliberately vague or vaguely deliberative: A review of motivation and design choices in deliberative monetary valuation studies," Ecological Economics, Elsevier, vol. 208(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wanek, Eva & Bartkowski, Bartosz & Bourgeois-Gironde, Sacha & Schaafsma, Marije, 2023. "Deliberately vague or vaguely deliberative: A review of motivation and design choices in deliberative monetary valuation studies," Ecological Economics, Elsevier, vol. 208(C).
    2. Bunse, Lukas & Rendon, Olivia & Luque, Sandra, 2015. "What can deliberative approaches bring to the monetary valuation of ecosystem services? A literature review," Ecosystem Services, Elsevier, vol. 14(C), pages 88-97.
    3. Kenter, Jasper O. & Bryce, Rosalind & Christie, Michael & Cooper, Nigel & Hockley, Neal & Irvine, Katherine N. & Fazey, Ioan & O’Brien, Liz & Orchard-Webb, Johanne & Ravenscroft, Neil & Raymond, Chr, 2016. "Shared values and deliberative valuation: Future directions," Ecosystem Services, Elsevier, vol. 21(PB), pages 358-371.
    4. Kenter, Jasper O. & Reed, Mark S. & Fazey, Ioan, 2016. "The Deliberative Value Formation model," Ecosystem Services, Elsevier, vol. 21(PB), pages 194-207.
    5. Lienhoop, Nele & Schröter-Schlaack, Christoph, 2018. "Involving multiple actors in ecosystem service governance: Exploring the role of stated preference valuation," Ecosystem Services, Elsevier, vol. 34(PB), pages 181-188.
    6. Lo, Alex Y. & Spash, Clive L., 2011. "Articulation of Plural Values in Deliberative Monetary Valuation: Beyond Preference Economisation and Moralisation," MPRA Paper 30002, University Library of Munich, Germany.
    7. Spash, Clive L., 2007. "Deliberative monetary valuation (DMV): Issues in combining economic and political processes to value environmental change," Ecological Economics, Elsevier, vol. 63(4), pages 690-699, September.
    8. Spash, Clive L., 2007. "Deliberative Monetary Valuation (DMV) in Theory," MPRA Paper 101132, University Library of Munich, Germany.
    9. Clive L Spash, 2007. "Deliberative Monetary Valuation (DMV) in Practice," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2007-04, CSIRO Sustainable Ecosystems.
    10. Kenter, Jasper O., 2016. "Integrating deliberative monetary valuation, systems modelling and participatory mapping to assess shared values of ecosystem services," Ecosystem Services, Elsevier, vol. 21(PB), pages 291-307.
    11. Bartkowski, Bartosz & Lienhoop, Nele, 2016. "Beyond rationality, towards reasonableness: Deliberative monetary valuation and Amartya Sen’s approach to rationality," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236292, Agricultural Economics Society.
    12. Kenter, Jasper O. & O'Brien, Liz & Hockley, Neal & Ravenscroft, Neil & Fazey, Ioan & Irvine, Katherine N. & Reed, Mark S. & Christie, Michael & Brady, Emily & Bryce, Rosalind & Church, Andrew & Cooper, 2015. "What are shared and social values of ecosystems?," Ecological Economics, Elsevier, vol. 111(C), pages 86-99.
    13. Balaine, Lorraine & Gallai, Nicola & Del Corso, Jean-Pierre & Kephaliacos, Charilaos, 2020. "Trading off environmental goods for compensations: Insights from traditional and deliberative valuation methods in the Ecuadorian Amazon," Ecosystem Services, Elsevier, vol. 43(C).
    14. Saarikoski, Heli & Mustajoki, Jyri, 2021. "Valuation through deliberation - Citizens' panels on peatland ecosystem services in Finland," Ecological Economics, Elsevier, vol. 183(C).
    15. Lo, Alex Y., 2013. "Agreeing to pay under value disagreement: Reconceptualizing preference transformation in terms of pluralism with evidence from small-group deliberations on climate change," Ecological Economics, Elsevier, vol. 87(C), pages 84-94.
    16. Yves Meinard & Olivier Cailloux, 2021. "Deliberation in Valuation and Decision Making: A Conceptual Clarification," Post-Print hal-03487127, HAL.
    17. Vargas, Andrés & Lo, Alex Y. & Rohde, Nicholas & Howes, Michael, 2016. "Background inequality and differential participation in deliberative valuation: Lessons from small-group discussions on forest conservation in Colombia," Ecological Economics, Elsevier, vol. 129(C), pages 104-111.
    18. Mavrommati, Georgia & Borsuk, Mark E. & Kreiley, Allison I. & Larosee, Christopher & Rogers, Shannon & Burford, Klancey & Howarth, Richard B., 2021. "A methodological framework for understanding shared social values in deliberative valuation," Ecological Economics, Elsevier, vol. 190(C).
    19. Michael Ahlheim & Benchaphun Ekasingh & Oliver Frör & Jirawan Kitchaincharoen & Andreas Neef & Chapika Sangkapitux & Nopasom Sinphurmsukskul, 2007. "Using Citizen Expert Groups in Environmental Valuation - Lessons from a CVM study in Northern Thailand," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 283/2007, Department of Economics, University of Hohenheim, Germany.
    20. Irvine, Katherine N. & O’Brien, Liz & Ravenscroft, Neil & Cooper, Nigel & Everard, Mark & Fazey, Ioan & Reed, Mark S. & Kenter, Jasper O., 2016. "Ecosystem services and the idea of shared values," Ecosystem Services, Elsevier, vol. 21(PB), pages 184-193.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:143:y:2018:i:c:p:97-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.