Abstract

The papers in this volume present a quite critical assessment of contingent valuation (CV). CV is a survey method that attempts to estimate individual values for economic goods by asking people hypothetical questions about their willingness to pay for such goods. In economics, CV has previously been studied almost solely by economists specializing in environmental economics. This book, however, reports research which is mainly from economists with specialities in economic theory, econometrics, and public finance, rather than from the more narrowly focused research of environmental economists. In addition, the research of specialists in psychology, market research, and litigation is included.
The inclusion of the panel discussion by Professors Randall, Griliches, and Hausman, and the solicited insights of Professor Arrow and Plott regarding the collected works, contribute greatly to the volume. They are excellent in spotlighting the main issues and in providing direction for future research. The collection of work is uniformly critical of this method of assessment gain or loss in nonuse values of an environmental or natural resource.
Journal of Economic Literature