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Valuing Environmental Preferences: Theory and Practice of the Contingent Valuation Method in the US, EU , and developing Countries

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Valuing Environmental Preferences: Theory and Practice of the Contingent Valuation Method in the US, EU , and developing Countries

1 Introduction and Overview

  • Published: November 2001
  • Cite Icon Cite
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A brief introduction to the background of the contingent valuation (CV) method is given, followed by an outline of the structure of the book, and an account of the context and content of each of the 17 following chapters. Part I of the book (Chs. 2–6) considers the conceptual theoretical context and underpinnings of CV – an area where in many respects the most fundamental disagreements of the CV debate originate. Part II (Chs. 7–13) explores detailed questions on the methodological application of CV, and Part III (Chs. 14–16) extends this investigation by looking at some special topics in CV through case studies. Finally, Part IV (Chs. 17–18) considers the institutional dimension of CV use in both the USA and the European Union (EU), within which CV is adopted as a practical tool to inform choices in the public sector about resource allocation in the environment field. It is stressed that the book is not a manual of how to apply the CV method; rather, it attempts to present the state of the art in CV, pointing readers in the right direction and helping them to avoid many of the pitfalls in CV of which novices, and some experts, may be unaware.

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The contingent valuation method in health care

Affiliation.

  • 1 Department of Health Economics, University of Ulm, Germany.
  • PMID: 10538292
  • DOI: 10.1016/s0168-8510(99)00010-x

The contingent valuation method (CVM) is a survey-based, hypothetical and direct method to determine monetary valuations of effects of health technologies. This comprehensive review of CVM in the health care literature points at methodological as well as conceptual issues of CVM and on willingness to pay as a measure of benefits compared with other measures used in medical technology assessment. Studies published before 1998 were found by searching computerised databases and former review literature. Studies were included, when performing CVM using original data and meeting qualitative criteria. Theoretical validity of CVM was sufficiently shown and there were several indications of convergent validity. No results on criterion validity and only a few on reliability were found. There was widespread use of different elicitation formats, which make comparisons of studies problematic. Direct questions were seen problematic. First bids used in bidding games influenced the monetary valuation significantly (starting point bias). There were indications that the range of bids of payment cards also affected the valuation (range bias). However, no strategic bias was found. The influence of different states of valuation (ex-ante, ex-post) and of payment methods, as well as the possible aggregation of the results of decomposed scenarios rather than more complex holistic scenarios, were rarely investigated. Further methodological analysis and testing seems to be necessary before CVM may be used in health care decision making. Important research topics are the connection of assessment of different elicitation methods and criterion validity as well as tests on reliability according to methodological issues. Concerning conceptual issues, the analysis of the influence of different states of evaluation and of the status of the respondents as diseased or non-diseased, as well as the aggregation of results of decomposed scenarios, proved to be topics of further research.

Publication types

  • Attitude to Health
  • Competitive Bidding
  • Cost-Benefit Analysis / methods*
  • Cost-Benefit Analysis / organization & administration
  • Patient Acceptance of Health Care
  • Quality-Adjusted Life Years
  • Reproducibility of Results
  • Technology Assessment, Biomedical / economics*

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Ecosystem services valuation: a review of concepts, systems, new issues, and considerations about pollution in ecosystem services

  • Review Article
  • Published: 20 June 2023
  • Volume 30 , pages 83051–83070, ( 2023 )

Cite this article

literature review contingent valuation method

  • Mehdi Zandebasiri 1 ,
  • Hassan Jahanbazi Goujani 1 ,
  • Yaghoub Iranmanesh 1 ,
  • Hossein Azadi 2 ,
  • Ants-Hannes Viira 3 &
  • Mohsen Habibi 4  

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Managers can determine the function of ecosystem services in decision-making processes through valuation. Ecological functions and processes that benefit people lead to ecosystem services. Valuing ecosystem services mean finding values for the benefits of ecosystem services. For the concepts related to ecosystem services and their valuation, categories in different articles have been presented. One of the most important issues is providing a suitable grouping for different methods and concepts of valuing ecosystem services. In this study, the most recent topics related to ecosystem service valuation methods were compiled and categorized by using the system theory. The aim of this study was to introduce some of the most important classical and modern methods and concepts of valuing ecosystem services. For this aim, a review of articles related to ecosystem service valuation methods, content analysis, and categorization of their contents was used to provide definitions, concepts, and categorization of different methods. To summarize, valuation methods are classified into two types: classical and modern methods. Classical approaches include the avoided cost method, the replacement cost method, the factor income method, the travel cost method, hedonic pricing, and contingent value. Modern methods include the basic value transfer method, deliberative ecosystem service valuation, valuation of climate change risks, and other cases that evolve every day in the world of science. Findings of the paper have the potential to be beneficial in comprehending the definitions and ideas of ecosystem services in ecosystem management, particularly in protected areas, participatory management, and pollutant research. This research can add to the worldwide literature on the valuing of ecosystem services while also determining the most pressing issues and difficulties of today, such as climate change, pollution, ecosystem management, and participatory management.

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Acknowledgements

We are grateful from two anonymous reviewers whose comments were very helpful for this article.

This study was an extension of the resource review phase of a research project in valuing ecosystem services approved by AREEO, Iran with approved code: 4-42-09-125-00127. The Agricultural and Natural Resources Research Center of Chaharmahal and Bakhtiari Province and General Department of Environment of Chaharmahal and Bakhtiari Province, Iran sponsored this project.

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Department of Economics and Rural Development, Gembloux Agro-Bio Tech, University of Liège, Gembloux, Belgium

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MZ prepared the original draft. HJG, YI, and MH helped in literature review. HA and AHV enriched and edited the paper in all sections.

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Zandebasiri, M., Jahanbazi Goujani, H., Iranmanesh, Y. et al. Ecosystem services valuation: a review of concepts, systems, new issues, and considerations about pollution in ecosystem services. Environ Sci Pollut Res 30 , 83051–83070 (2023). https://doi.org/10.1007/s11356-023-28143-2

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    A mail contingent valuation survey was conducted to determine the willingness to pay (WTP) for a hypothetical groundwater protection plan in Dover, New Hampshire, and the assessed land values of respondents as well as their incomes were shown to positively influence their WTP values.

  20. Determinants of willingness to pay for health services: a systematic

    A comprehensive systematic literature search and review of CV studies assessing determinants of WTP for health services was conducted, including 11 electronic databases. Two of the authors made independent decisions on the eligibility of studies. ... The contingent valuation method: a review. Environ. Impact Assess. Rev. 24, 89-124 (2004)

  21. Contingent valuation technique: A review of literature

    The contingent valuation method is a valuation based on a survey that offers the respondents a chance to make an economic decision on non-market goods. According to (Kedir, 2011); World Bank (2002 ...

  22. Ecosystem services valuation: a review of concepts, systems ...

    Ndebele and Forgie used contingent valuation by estimating the economic benefits of a wetland restoration plan in New Zealand based on the output of a pilot research and using focus group. According to Azadi et al. , preference methods include contingent valuation method, conjoint analysis, and factor income methods. Also, revealed preference ...