15 Pages Posted: 23 Sep 2004
The objective of this paper is to discuss various methods that are applied to find a pecuniary measure of the worth of environmental goods and services and evaluate them on the principles of institutional economics. Approaches to pecuniary valuation based on revealed, imputed and expressed willingness to pay that encompass (i) the market price method, (ii) the productivity method, (iii) the hedonic pricing Method, (iv) the travel cost method, (v) the damage cost avoided method, (vi) the replacement cost method, (vii) the substitute cost method, (viii) the contingent valuation method (ix) the contingent choice method, etc. have been discussed.
Keywords: Valuation, environmental goods and services, pecuniary, non-pecuniary, revealed, imputed, expressed willingness to pay, market price, productivity, hedonic pricing, travel cost, damage cost, replacement cost, substitute cost, contingent valuation, contingent choice, institutional economics
JEL Classification: H41, O13, Q20, Q26, Q30
Suggested Citation: Suggested Citation
By Robert Hart