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Using Choice Experiments for Non-Market Valuation

  • Peter Martinsson

    ()

    (Department of Economics, Göteborg University)

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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File URL: http://www.idrc.ca/uploads/user-S/10301141930choiceexperiments.pdf
File Function: First version, 2002
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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
Contact details of provider: Web page: http://www.eepsea.net

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