Premium
Contingent Valuation and Social Choice
Author(s) -
McFadden Daniel
Publication year - 1994
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243732
Subject(s) - contingent valuation , wilderness , valuation (finance) , econometrics , willingness to pay , robustness (evolution) , wilderness area , economics , sensibility , actuarial science , statistics , computer science , mathematics , microeconomics , finance , ecology , biochemistry , chemistry , gene , biology , art , literature
The contingent valuation method for estimating the existence value of natural resources is examined for psychophysical robustness, statistical reliability, and economic sensibility. Extensions of standard models for willingness‐to‐pay, and suitable econometric techniques for analyzing these models, are developed. The analysis is applied to a series of experiments on the value of preserving wilderness areas in the western United States. The results call into question the reliability of the CV method for estimating existence values.