Environmental Economics

Valuing Environmental Goods: A State of the Arts Assessment of the Contingent Valuation Method, Volume 1.A of Experimental Methods for Assessing Environmental Benefits

This document is the executive summary of a much larger companion report (EE-0280B) whose focus is a state of the art assessment of the contingent valuation method (CVM). The report explores many of the possible sources of bias and related counter-arguments. The larger study is divided into two major parts. Part I, summarized in Section B through F of this summary, 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 the Part I report focuses on the question of the accuracy of measures derived with the CVM.
Part II of the larger study, summarized in this summary in Sections G through L, presents results of a 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.

  • Keywords

    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
    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-0280A
    List of all reports in the Series:
  • Participating Organizations

    Research Organization:

    Wyoming, University of, Institute for Policy ResearchAddress:
    City: State: ZIP:
    Phone: Fax:
    Funding Organization:
    Environmental Protection Agency
    Office of Policy Analysis
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
    Non-EPA Publishing Organization:
    Rowman & AllanheldAddress: 81 Adams Drive
    City: Totowa State: NJ ZIP: 07512
    Phone: Fax:
  • Report Details
    Number of Pages:
    Comment: The Rowman and Allanheld version is a later version
    Grant/Contract #:
    ISBN #:
  • 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