Contingent Valuation
Contingent Valuation is a survey-based economic technique used to estimate the value people place on non-market benefits, like environmental conservation or public services. It involves asking individuals how much they would be willing to pay for specific benefits or accept in compensation for loss. By gauging people's preferences, researchers can assess the economic value of resources or improvements that aren’t bought and sold in traditional markets. This method helps decision-makers understand public willingness to pay and prioritize investments in areas like conservation, healthcare, or infrastructure.
Additional Insights
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Contingent valuation is a survey-based economic method used to estimate the value of non-market resources, like environmental benefits or public goods. It involves asking people how much they would be willing to pay for specific benefits or how much compensation they would require to accept a loss. This technique helps policymakers understand the public's value for things that don’t have a market price, such as clean air or wildlife preservation. By quantifying these values, contingent valuation supports better decision-making regarding resource management and conservation efforts.