ECONOMIC VALUATION, VALUES AND CONTINGENT METHOD: AN OVERVIEW

Paulo Nunes

The Johns Hopkins University, Bologna Center, Via Belmeloro 11, 40126 Bologna, Italy

and

Peter Nijkamp

Department of Spatial Economics, VU University Amsterdam, The Netherlands; e-mail: pnijkamp@feweb.vu.nl

Abstract:

In this paper the concept of total economic value of an environmental asset is introduced. The different valuation methods, putting a monetary value on environmental resources as a nonmarket good are also reviewed. Particular emphasis is placed on policy-making and the link of contingent valuation method to standard economic theory. Potential measurement bias attached to the contingent valuation estimates are also reviewed, addressed in terms of an efficient survey design and alternative microeconomic formulations.
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