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Applying the Contingent Valuation Method in Resource Accounting: A Bold Proposal

Author

Listed:
  • Boman, Mattias

    (Southern Swedish Forest Research Centre, Swedish University of Agricultural Sciences)

  • Huhtala, Anni

    (Environmental Economics, MTT Economic Research)

  • Nilsson, Charlotte

    (National Institute of Economic Research)

  • Alroth, Sofia

    (Environmental Strategies Research Group)

  • Bostedt, Göran

    (Dept. of Forest Economics, Swedish University of Agricultural Sciences)

  • Mattssson, Leif

    (Southern Swedish Forest Research Centre, Swedish University of Agricultural Sciences)

  • Gong, Peichen

    (Dept. of Forest Economics, Swedish University of Agricultural Sciences)

Abstract

Resource accounting involves complementing conventional national accounts with changes in environmental and natural resource capital valued in monetary terms. By adopting the Ramsey device of "Bliss", we derive a theoretically consistent environmentally adjusted NDP (Net Domestic Product) measure. The measure indicates sustainable future consumption that an economy can support along the optimal path approaching "Bliss", or "sustainability" determined by national environmental goals. The goals accepted by the Swedish parliament are used to show the applicability of the contingent valuation method to elicit non-market benefits of an economy approaching the sustainability targets. We investigate the compatibility of marginal willingness to pay measures derived on hypothetical markets with market prices used in national accounts. Finally, we raise certain issues of survey design, e.g. to take advantage of the CVM as a democratic device for value estimation over time.

Suggested Citation

  • Boman, Mattias & Huhtala, Anni & Nilsson, Charlotte & Alroth, Sofia & Bostedt, Göran & Mattssson, Leif & Gong, Peichen, 2003. "Applying the Contingent Valuation Method in Resource Accounting: A Bold Proposal," Working Papers 85, National Institute of Economic Research.
    • Handle: RePEc:hhs:nierwp:0085
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    References listed on IDEAS

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    Cited by:

    1. Samakovlis, Eva, 2008. "How are Green National Accounts Produced in Practice?," Working Papers 105, National Institute of Economic Research.

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