Edited by Anna Alberini and James R. Kahn
Chapter 17: The Use of Contingent Valuation in Developing Countries: A Quantitative Analysis
Dan Biller, Karoline Rogge and Giovanni Ruta1 17.1 Introduction The past three decades have witnessed an expansion in academic and professional journals, of economic valuation methods of public goods, public bads and externalities, especially those targeting environmental problems. Despite signiﬁcant improvements in the understanding of economic values and methods to measure them in the presence of market failures, economic valuation is yet to reach policy making, and even projects, with the same level of success as in academia. While advancements in environmental laws and regulations design and implementation, law suits, other environmental policy instruments and priority setting exercises suggest that techniques to assess the economic value of environmental issues would be in high demand, environmental policy makers and project managers, who could in principle be major users of economic valuation, are often resistant. At the policy, planning, program, and project level, economic valuation in broad terms, and more speciﬁcally the contingent valuation method, are viewed with suspicion. Several explanations for the skepticism are given but tend to fall into three broad categories: (1) The advantages of undertaking economic valuation are unclear; (2) there are many environmental issues that cannot be ‘monetized’ or have a price tag placed upon them; and (3) economic valuation, especially CV, is diﬃcult to do and costly to undertake. Items (1) and (2) have been addressed in detail in the literature. While these items are also discussed in this chapter, item (3) is its main focus. The chapter is divided into six sections....
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