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Exploring existence value
Author(s) -
Madariaga Bruce,
McConnell Kenneth E.
Publication year - 1987
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/wr023i005p00936
Subject(s) - stylized fact , contingent valuation , valuation (finance) , value (mathematics) , economics , chesapeake bay , microeconomics , natural resource , environmental economics , natural resource economics , actuarial science , willingness to pay , mathematics , ecology , statistics , finance , estuary , biology , macroeconomics
The notion that individuals value the preservation of water resources independent of their own use of these resources is discussed. Issues in defining this value, termed “existence value,” are explored. Economic models are employed to assess the role of existence value in benefit‐cost analysis. The motives underlying existence value are shown to matter to contingent valuation measurement of existence benefits. A stylized contingent valuation experiment is used to study nonusers’ attitudes regarding projects to improve water quality in the Chesapeake Bay. Survey results indicate that altruism is one of the motives underlying existence value and that goods other than environmental and natural resources may provide existence benefits.