2.3.5. Stated Preference
Stated preference approaches rely on hypothetical questions to elicit preferences or values. The approaches that yield estimates of value may be classified as direct methods, whereas those that indicate only preferences may be classified as indirect methods. While values can be inferred from the responses to indirect questioning, it does take additional steps.
Among the direct stated preference approaches are contingent valuation and bidding game methods. Both of these methods yield direct measures of consumer willingness to pay or willingness to accept changes in environmental quality. More details concerning the methods and the EPA literature on these methods are provided in a separate section.
In addition to the direct methods, there are indirect stated preference methods, include contingent ranking, contingent activity, and referenda on environmental issues.
EPA has done a great deal of research on stated preference methods. You can see the full list of reports corresponding to this section in the benefits analysis - valuation - stated preference subview of the subject view of the Environmental Economics Report Inventory (EERI) database and in the benefits analysis - valuation - stated preference subview of the subject view of the EPA/NSF Research Funding database.