Contingent value


Contingent valuation addresses identifying values for goods not typically traded on markets, known as non-market goods. These include high environmental quality, life years, and good health. To establish appropriate values - the relative value of these goods to those goods that are traded on markets - there are a number of methods to estimate value. These include hedonic pricing, contingent valuation, and the travel cost method.



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Contingent valuation addresses identifying values for goods not typically traded on markets, known as non-market goods. These include high environmental quality, life years, and good health. To establish appropriate values - the relative value of these goods to those goods that are traded on markets - there are a number of methods to estimate value. These include hedonic pricing, contingent valuation, and the travel cost method. A full description goes beyond the scope of this guidance. An example of the hedonic pricing method would be examine the extent to which workers in higher risk jobs are paid more than workers in comparable jobs of lower risk; from this is, it is possible to impute a value to that risk. An example of contingent valuation would be to ask people how much they would be willing to pay to protect a rare bird species; from this it is possible to impute a value to that species' existence. An example of the travel cost method would be to survey visitors to a national park about where they came from and how much they are willing to pay for visiting the park and the calculating the value of the park as the consumer surplus.

MEDIATION Toolbox

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Valuation
Case steps (Europe)

Case study steps identified for task 'Contingent value'.

SE1 - Sorry, no more wine!
Exploring risks: What are the indirect outcomes of winemaking to tourism in Tuscany?


This section is based on the UNEP PROVIA guidance document


Criteria checklist

1. You want to appraise adaptation options.
2. The focus is either on collective actions and there are no conflicting interests of private actors, or the focus is on individual collective actions.
3. Decisions can be formalised.
4. Either the set of options includes only short term ones or residual impacts can not be projected.
5. There are risks are due to current climate variability and the relative costs of outcomes are high.
6. Public decision.
7. Outcome attributes do not have prices.