Valuing Environmental Resources: A Constructive Approach
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Date
1993
Authors
Slovic, Paul
Lichtenstein, Sarah
Gregory, Robin
Journal Title
Journal ISSN
Volume Title
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Abstract
The use of contingent valuation (CV) methods for estimating the economic value of environmental improvements and damages has increased significantly. However, doubts exist regarding the validity of the usual willingness to pay CV methods. In this article, we examine the CV approach in light of recent findings from behavioral decision research regarding the constructive nature of human preferences. We argue that a principal source of problems with conventional CV methods is that they impose unrealistic cognitive demands upon respondents. We propose a new CV approach, based on the value-structuring capabilities of multiattribute utility theory and decision analysis, and discuss its advantages and disadvantages.
Description
39 pages
Keywords
Preferences, Contingent valuation, Decision making, Environmental values
Citation
Gregory, R., Lichtenstein, S., & Slovic, P. (1993). Valuing environmental resources: A constructive approach. Journal of Risk and Uncertainty, 7, 177-197.