Contingent Valuation

A Critical Assessment

Edited By

  • J.A. Hausman, MIT, Cambridge, MA, USA

The papers in this volume present a quite critical assessment of contingent valuation (CV). CV is a survey method that attempts to estimate individual values for economic goods by asking people hypothetical questions about their willingness to pay for such goods. In economics, CV has previously been studied almost solely by economists specializing in environmental economics. This book, however, reports research which is mainly from economists with specialities in economic theory, econometrics, and public finance, rather than from the more narrowly focused research of environmental economists. In addition, the research of specialists in psychology, market research, and litigation is included.
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Book information

  • Published: July 1993
  • Imprint: NORTH-HOLLAND
  • ISBN: 978-0-444-81469-2


The inclusion of the panel discussion by Professors Randall, Griliches, and Hausman, and the solicited insights of Professor Arrow and Plott regarding the collected works, contribute greatly to the volume. They are excellent in spotlighting the main issues and in providing direction for future research.
The collection of work is uniformly critical of this method of assessment gain or loss in nonuse values of an environmental or natural resource.

Journal of Economic Literature

Table of Contents

Contingent Valuation-Based Estimates of Non-use Value: An Overview and Outlook. On Contingent Valuation Measurement of Non-use Values (P.A. Diamond, J.A. Hausman). Empirical Studies: Examining the Properties of Contingent Valuation-Based Measures of Non-use Value. Does Contingent Valuation Measure Preferences? Experimental Evidence (P.A. Diamond et al.). Measuring Natural Resource Damages With Contingent Valuation: Tests of Validity and Reliability (W.H. Desvousges et al.). Issues in the Contingent Valuation of Environmental Goods: Methodologies for Data Collection and Analysis (D.L. McFadden, G.K. Leonard). Exploring a Budget Context for Contingent Valuation Estimates (M.A. Kemp, C. Maxwell). Where Do The Numbers Come From? How People Respond to Contingent Valuation Questions (D.A. Schkade, J.W. Payne). Review and Analysis of Recent State-of-the-Art Contingent Valuation Studies (W.J. Mead). User Damages in the Case of an Oil Spill: A Reference for Total Damages. Assessing Use Value Losses Caused by Natural Resource Injury (J.A. Hausman, G.K. Leonard, D.L. McFadden). Theoretical Issues: Economic and Legal Problems Using Contingent Valuation-Based Measures of Non-use Value.Contingent Valuation of the Nonuse Value of Natural Resources: Implications for Public Policy and the Liability System (S. Shavell). Some Legal and Regulatory Aspects of Contingent Valuation (J.F. Daum). Is Sympathy an Economic Value? Philosophy, Economics, and the Contingent Valuation Method (P.R. Milgrom). Discussion of Papers Presented at the Symposium: An Assessment and Outlook for Contingent Valuation. Panel Discussion (A. Randall, Z. Griliches, J.A. Hausman). Perspectives: Issues Raised at the Symposium. Contingent Valuation: A View of the Conference and Associated Research (C.R. Plott, K.J. Arrow). Contingent Valuation of Non-use Values: Observations and Questions (K.J. Arrow). Subject Index. Author Index.