How precise are monetary representations of environmental improvements?
A study was conducted to examine the accuracy of monetary representations of environmental improvements. Data were drawn from a survey of 425 people, primarily students, who were asked to value environmental goods using a response mode that expressed willingness-to-pay as a multiplier or divider of...
| Published in: | Land Economics Vol. 71; pp. 462 - 474 |
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| Main Authors: | , , |
| Format: | Article |
| Published: |
University of Wisconsin Press
November 1995
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| Summary: | A study was conducted to examine the accuracy of monetary representations of environmental improvements. Data were drawn from a survey of 425 people, primarily students, who were asked to value environmental goods using a response mode that expressed willingness-to-pay as a multiplier or divider of a so-called budgetary unit. Findings indicate that hypothetical willingness-to-pay is highly dependent on the size of the budgetary unit. This suggests that people's contingent values are only vaguely represented in monetary terms, so any dollar amount within a broad range is perceived as an acceptable expression of value. The results demonstrate some of the difficulties involved in assessing precise monetary values for environmental resources. |
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