Cost-Benefit Analysis and the Environment

Recent Developments

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This book presents an in-depth assessment of the most recent conceptual and methodological developments in cost-benefit analysis and the environment. It examines how costs and benefits are evaluated and given monetary value, how to take into account impacts on future generations and impacts of irreversible losses, and how to deal with equity and sustainability issues.

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Stated Preference Approaches I

Contingent Valuation Method

Stated preference methods offer a direct survey approach to estimating willingness to pay for changes in provision of (non-market) goods. In this chapter, the most prominent example – the contingent valuation (CV) method – is discussed. The CV method is applicable to almost all non-market goods, to ex ante and ex post valuations and it is one of the few available methodologies able to capture all types of benefits from a non-market good including those unrelated to current or future use.

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