Valuing the environment through contingent valuation

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

T he ability to place a monetary value on the consequences of pollution discharges is a cornerstone of the economic approach to the environment. If this cannot be done, it undercuts the use of economic principles, whether to determine the optimal level of pollution or to implement thisvia Pigouvian taxes or Coase-style liability rules. Sometimes, the valuation involves a straightforward application of methods for valuing market commodities, as when sparks from a passing train set fire to a wheat field. Often, however, the valuation is more difficult. Outcomes such as reducing the risk of human illness or death, maintaining populations of native fish in an estuary, or protecting visibility at national parks are not themselves goods that are bought and sold in a market. Yet, placing a monetary value on them can be essential for sound policy.

Original languageEnglish (US)
Title of host publicationThe Stated Preference Approach to Environmental Valuation
Subtitle of host publicationVolume III: Applications: Benefit-Cost Analysis and Natural Resource Damage Assessment
PublisherTaylor and Francis
Pages497-521
Number of pages25
ISBN (Electronic)9781351881579
ISBN (Print)9780754623342
StatePublished - Jan 1 2018
Externally publishedYes

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ASJC Scopus subject areas

  • Environmental Science(all)

Cite this

Hanemann, W. M. (2018). Valuing the environment through contingent valuation. In The Stated Preference Approach to Environmental Valuation: Volume III: Applications: Benefit-Cost Analysis and Natural Resource Damage Assessment (pp. 497-521). Taylor and Francis.