Environmental Economics

On the Value of the Condition of a Forest Stock

If preferences are transitive so that the Slutsky terms are symmetric, observations on usages of the good across price and income setting can be employed to construct demand functions from which unique inferences about underlying preferences can be drawn. In this paper, published findings in experimental economics and psychology are used to construct a contingent valuation questionnaire that is then employed to gather economic data on air pollution damages to a national forest. Reductions in these damages are found to have increasing marginal benefits. Because of the linearity of the biological damage index, this result is attributed to a nonconvex preference ordering arising either from the inappropriateness of the transitivity axiom or the multidimensional character of forest environments.

  • Keywords

    Subject:
    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Stated Preference
    1. Benefits Analysis - Valuation - Stated Preference - Contingent Valuation
    Environmental Media:
    e. Ecosystems
    Authors:
    Crocker, Thomas D.
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    Study Purpose:
    Empirical Application, Methodology Development & Evaluation
    Inventory Record #: EE-0556
  • Participating Organizations

    Research Organization:

    Wyoming, University of, Dept. of EconomicsAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Draft
    Date:
    Number of Pages:
    34
    Comment:
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