Contingent valuation method, Public Economics

Assignment Help:

Contingent  Valuation Method

In this method we construct a hypothetical market for a particular environmental function. This is an interview-based method where respondents are asked their willingness-to-pay (in monetary terms) for continuation of the environmental function. Alternatively some studies measure the willingness- to-accept for foregoing the environmental function. Here the consumers are compensated for the change in the environmental service. There are certain conceptual problems associated with this method. First, the willingness to pay should not be taken as the willingness to accept; usually the latter is higher than the former.

Moreover, both these terms do not imply the same property rights. Secondly, the persons interviewed are hypothetical consumers. They may not be aware of the benefits of the environmental function. If they were actually asked to make payment, their behaviour would be different. Thus it is sensitive to numerous biases in survey design and implementation. In recent years this method has become quite popular. In Indian situations this method has been applied by Hadker et al. (1997) for measurement of recreational and educational value of Borivli National Park in Mumbai, by James and by Murty (1998) for the cost of water pollution of the river Ganga, and by Murty and Menkhaus (1994) for valuation of ecotourism in Koladeo national park.


Related Discussions:- Contingent valuation method

Identify the main purposes of its e-government website, QUESTION (i) ‘T...

QUESTION (i) ‘The area of E-Government encompasses three major domains. These domains address the problems that Government is too inefficient and ineffective; too selfserving a

Environmental sustainability problem, Sustainability, more recently referre...

Sustainability, more recently referred to as ‘sustainable development', came from the idea of integrating economic development and environmental protection. The concept is based on

Extensions of the sna-type systems, Normal 0 false false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Graphthe market for water park business, Graphthe market for water park bus...

Graphthe market for water park business, labeling the demand curve, the social-value curve, the market equilibrium level of output, and the efficient level of output. What is the p

Principal-agent problem and policy process, As you know, the principal-agen...

As you know, the principal-agent problem stress the effect of asymmetric information between the principal and the agents on economic outcomes, the equilibrium in a principal-agent

Opportunity cost of everything increase, Earlier than the Civil War, the So...

Earlier than the Civil War, the South graded with the North and with England. It sold cotton and bought manufactured goods and food. Throughout the war, one of Lincoln's first acti

Bmbb, examples of inductive method in economics

examples of inductive method in economics

Public policies, Part I. We have examined federal public policies in the c...

Part I. We have examined federal public policies in the context of the democratic political system in the US.     Types of policy legislation/behavior fall into 3 main types. A

What makes a public opinion poll scientific, What makes a public opinion po...

What makes a public opinion poll scientific 1. To what extent do we really think about political issues as individuals, or are we more influenced by our environment -family, t

Emerging issues affecting the role of government, Probelm 1: (a) What ...

Probelm 1: (a) What are the main roles of Government in the economic development of a country? (b) What are some of the emerging issues affecting the role of Government?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd