Environmental Economics

Valuing Environmental Goods: A State of the Arts Assessment of the Contingent Valuation Method, Volume I.B of Experimental Methods for Assessing Environmental Benefits

This document is a state of the art assessment of the contingent valuation method. The report explores many of the possible sources of bias and related counter-arguments. The study is divided into two major parts. Part I is a literature review encompassing the historical setting of the contingent valuation method, its development and uses over a number of years, and potential relevance of research in experimental economics for the approach. Part I also considers the implications for the structure of survey instruments used in CVM, as well as for results of research findings in other disciplines, including psychology. Finally, Part I report focuses on the question of the accuracy of measures derived with the CVM.
Part II presents results of a 1984 conference on "An Assessment of the State of the Arts of the Contingent Valuation Method," where the results of the research in Part I were subjected to critical review by a number of environmental economists and by a review panel consisting of Kenneth Arrow, Daniel Kahneman, Sherwin Rosen, and Vernon Smith. Major conclusions concerning the valuation approach are summarized.
A summary of this report is also available.
The downloadable files and the corresponding parts and chapters of the report are as follows:

    File EE-0280B-01:
      Part I. The Contingent Valuation Method
      Chapter 1. Introduction
      Chapter 2. A Historical Perspective for the CVM Assessment
      Chapter 3. Applications of the CVM: An Overview of the Issues
      Chapter 4. Experimental Economics: Implications for the CVM
    File EE-0280B-02:
      Chapter 5. Imputing Actual Behavior from Choices Made under Hypothetical Circumstances
      Chapter 6. Comparison Studies: What is Accuracy
    File EE-0280B-03:
      Part II. The Assessment Conference and Conclusions as to the State of the Arts of the CVM
      Chapter 7. The Assessment Conference: Overview
      Chapter 8. The Possibility of Satisfactory Benefit Estimation with Contingent Markets--by Alan Randall
      Chapter 9. Does Contingent Valuation Work? -- by Richard C. Bishop and Thomas A. Heberlein
      Chapter 10. On Assessing the State of the Arts of the Contingent Valuation Method of Valuing Environmental Changes--by A. Myrick Freeman III
      Chapter 11. To Keep or Toss the Contingent Valuation Method--by V. Kerry Smith
    File EE-0290B-04:
      Chapter 12. The Review Panel's Assessment
      Chapter 13. Summary and Conclusions
      References
      TO KEEP OR TOSS THE CONTINGENT VALUATION METHOD --- BY V. KERRY SMITH
      ON ASSESSING THE STATE OF THE ARTS OF THE CONTINGENT VALUATION METHOD OF VALUING ENVIRONMENTAL CHANGES
      --- BY A. MYRICK FREEMAN IIIDOES CONTINGENT VALUATION WORK?
      --- BY RICHARD C. BISHOP AND THOMAS A HEBERLEIN
      THE POSSIBILITY OF SATISFACTORY BENEFIT ESTIMATION WITH CONTINGENT MARKETS --- BY ALAN RANDALL
    Subject:
    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Stated Preference
    1. Benefits Analysis - Valuation - Stated Preference - Contingent Valuation
    Environmental Media:
    f. Multimedia
    Authors:
    Murdoch, James
    Thayer, James
    Gegax, Doug
    Schulze, William D.
    Anderson, Donald
    Gerking, Shelby D.
    Coulson, Anne
    Tashkin, Donald
    Anderson, Donald
    Dickie, Mark
    Brookshire, David S.
    Cummings, Ronald G.
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    Study Purpose:
    Methodology Development & Evaluation
    Report Series:
    Experimental Methods for Assessing Environmental Benefits
    Inventory Record #: EE-0280B
    List of all reports in the Series:
  • Participating Organizations

    Research Organization:

    Wyoming, University of, Institute for Policy ResearchAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
    Funding Organization:
    Environmental Protection Agency, Office of Policy, Planning and Evaluation, Office of Policy AnalysisAddress:
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
    E-mail:
    Non-EPA Publishing Organization:
    Rowman & AllanheldAddress: 81 Adams Drive
    City: Totowa State: NJ ZIP: 07512
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Final
    Date:
    Number of Pages:
    326
    Comment: The Rowman and Allanheld version is a later version
    Grant/Contract #:
    ISBN #:
    CR-811077-01-0
    0-8476-7448-7
  • How to Obtain Report


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    Date Linked: 05/28/2009
    Other Ways to Obtain the Report:
    You can obtain this report by contacting Rowman & Allanheld directly at:
    81 Adams Drive, Totowa, NJ 07512