Contingent Valuation Method
The Contingent Valuation Method (CVM) is a survey-based economic technique used to estimate the value people place on non-market goods, like environmental benefits or public services. It involves asking individuals how much they would be willing to pay for a specific benefit or how much compensation they would need to give up that benefit. This method helps policymakers understand public preferences and make informed decisions about resource allocation or environmental protection, capturing the monetary value of things that are typically not bought or sold in markets.
Additional Insights
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The Contingent Valuation Method (CVM) is a survey-based economic technique used to estimate the value of non-market resources, like environmental benefits or public goods. By asking people how much they would be willing to pay for a specific benefit (such as clean air or preserving a natural park), researchers gauge the economic value of these resources. Essentially, CVM helps policymakers understand public preferences and make informed decisions about resource management and conservation by translating qualitative values into quantitative estimates.