economic valuation methods

Economic valuation methods assess the worth of goods, services, or environments, often those without clear market prices, like clean air or biodiversity. Key methods include contingent valuation, which gauges how much people would pay to preserve or restore a resource, and revealed preference, which infers value from people's choices in real-life scenarios. Cost-benefit analysis is also used, comparing the costs of an action with its benefits. These methods help inform decision-making by highlighting the economic importance of non-market assets, guiding policies to reflect their true value in society.