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Combining Revealed and Stated Preference Data to Estimate the Nonmarket Value of Ecological Services: An Assessment of the State of the Science

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  • John C. Whitehead
  • Subhrendu K. Pattanayak
  • George L. Van Houtven
  • Brett R. Gelso

Abstract

This paper reviews the marketing, transportation, and environmental economics literature on the joint estimation of revealed and stated preference data. The revealed preference and stated preference approaches are first described with a focus on the strengths and weaknesses of each. Recognizing these strengths and weaknesses, the potential gains from combining data are described. A classification system for combined data that emphasizes the type of data combination and the econometric models used is proposed. A methodological review of the literature is pursued based on this classification system. Examples from the environmental economics literature are highlighted. A discussion of the advantages and disadvantages of each type of jointly estimated model is then presented. Suggestions for future research, in particular opportunities for application of these models to environmental quality valuation, are presented.

Suggested Citation

  • John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, 2005. "Combining Revealed and Stated Preference Data to Estimate the Nonmarket Value of Ecological Services: An Assessment of the State of the Science," Working Papers 05-19, Department of Economics, Appalachian State University, revised 2007.
    • Handle: RePEc:apl:wpaper:05-19
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    Keywords

    Nonmarket Valuation; Revealed Preference; Stated Preference;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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