Cameron, T. (1992), and J. Englin, “Cost-Benfit Analysis for Non-Market Resources Under Individual Uncertainty, ” Working Paper, University of California, Los Angeles.
'94
McFadden, D. (1994) “Contingent Valuation and Social Choice,” American Journal of Agricultural Economics, 76 (4), 689-708.
The contingent valuation method for estimating the existence value of natural resources is examined for psychophysical robustness, statistical reliability, and economic sensibility. Extensions of standard models for willingness-to-pay, and suitable econometric techniques for analyzing these models, are developed. The analysis is applied to a series of experiments on the value of preserving wilderness areas in the western United States. The results call into question the reliability of the CV method for estimating existence values.