Contingent Valuation

Contingent valuation is a survey-based method of determining the economic value of a nonmarket resource. It is utilized to estimate the value of resources and goods not typically traded in the economic markets. It is most commonly related to natural and environmental resources. As global environmental issues gain increased attention and concern, there is and will be more focus on the accuracy of estimating nonmarket values for natural and environmental resources. Environmental [Page 660]issues are extraordinarily complex and require sophisticated methods of analysis. Contingent valuation is the most widely used method for estimating nonmarket values yet it is unclear as to whether it is an appropriate and reliable method. Contingent valuation methods present an ethical challenge to those who use them to make significant decisions ...