| Sumario: | A study was conducted to test the theoretical explanations of the well-known disparity between compensation surplus and equivalent surplus measures of welfare. Equivalent loss (EL), the monetary loss equivalent to a proposed amenity reduction, and equivalent gain (EG), the gain equivalent to a proposed amenity increase, together with traditional welfare measures, were used in a contingent valuation study of traffic disamenity. Data were drawn from a survey of 1,040 households in Norwich, U.K. Findings reveal a lack of compelling evidence in favor of loss aversion as a cause of the disparity. Findings further reveal that, as valuation measures, the performance of EL is similar to the traditional willingness to pay for a gain, whereas EG performs poorly.
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