Table of Contents

Handbook on Contingent Valuation

Handbook on Contingent Valuation

Elgar original reference

Edited by Anna Alberini and James R. Kahn

The Handbook on Contingent Valuation is unique in that it focuses on contingent valuation as a method for evaluating environmental change. It examines econometric issues, conceptual underpinnings, implementation issues as well as alternatives to contingent valuation. Anna Alberini and James Kahn have compiled a comprehensive and original reference volume containing invaluable case studies that demonstrate the implementation of contingent valuation in a wide variety of applications. Chapters include those on the history of contingent valuation, a practical guide to its implementation, the use of experimental approaches, an ecological economics perspective on contingent valuation and approaches for developing nations.

Chapter 1: Introduction

Anna Alberini and James R. Kahn

Subjects: economics and finance, environmental economics, valuation, environment, environmental economics, valuation


Anna Alberini and James R. Kahn 1.1 Introduction The process of valuing environmental resources has never been a straightforward process. Although the valuation methodologies have been contributing to an understanding of the social benefits of environmental improvement (or costs of environmental change) for 50 years, the process of environmental valuation remains controversial, and in many ways divides the environmental economics profession. Additionally, the process of environmental valuation is questioned by any who approach the environmental decision-making process from the perspective of other academic disciplines, or from different stakeholder positions. Since the Exxon Valdez oil spill, and the resulting controversy over valuation methods, many eminent researchers have contributed to the process of developing a better understanding of valuation methods, how to reduce biases associated with their measurement, and how to better employ these estimates in the environmental decision-making process.1 This book represents a further attempt to contribute to the process of reducing these conflicts by improving valuation methods, reducing biases associated with estimates, and developing an improved understanding of the strengths and weaknesses of contingent valuation and associated methodologies. Despite the progress of others in recent years, this process of refinement and development must be continued. One important reason for this is that the valuation process has become more difficult at the same time it has become more crucial. The question of the times has shifted from the need to measure the damages associated with a specific environmental accident or specific impact on a...