Revealed Preference Methods for Nonmarket Valuation: An Introduction to Best           Practices

Bateman, Ian J.; Kling, Catherine L.

doi:10.1093/reep/reaa009

Cited by 15 publications

(9 citation statements)

References 23 publications

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“…The revealed preferences methods consist in observing the consumption choices made by individuals in the markets and drawing from these observations their preferences and the value of the ES analysed (Bateman & Kling, 2020). The two methods included in the studies of the sample are the travel cost method and the hedonic pricing method.…”

Section: Revealed Preferences Methodsmentioning

confidence: 99%

“…Therefore, the ultimate objective of the majority of the studies on ES is to offer a monetary estimate through the economic valuation of the series of services supplied by the ecosystems, going beyond the simple valuation of the production of food and forestry assets or the quantification of another type of services (He et al, 2015;Velasco-Muñoz & Aznar-Sánchez, 2016). This valuation is useful to the competent authorities for assessing conservation methods and assigning budgets in order to optimise the management of the scarce resources to achieve the economic, environmental and social objectives (Bateman & Kling, 2020).…”

Section: Introductionmentioning

confidence: 99%

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The economic valuation of ecosystem services: bibliometric analysis

Velasco-Muñoz

Aznar-Sánchez²,

Schoenemann³

et al. 2022

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Research background: The services provided by ecosystems are the main support for human populations and for the development of any type of activity. Today, the provision of these services is under threat. The economic valuation of ecosystem services is vital to design appropriate policies, define strategies and manage ecosystems. Purpose of the article: The objective of this study is to analyse the evolution of research on the economic valuation of ecosystem services over the last two decades. More specifically, it aims firstly to identify the main agents driving research and, secondly, it seeks to synthesize in a single document the relevant information on the main economic valuation methods, relating them to the categories of services, ecosystems and regions where they have been employed. Methods: A quantitative review was first carried out through a bibliometric analysis to identify the main drivers of this line of research and its development trends. Secondly, a qualitative review was conducted through a systematic review focusing on the most commonly used valuation techniques in relation to the characteristics of the service, the geographical scope and the ecosystem analysed. Findings & value added: The main novelty of this work, compared to previous literature, is that the relationship between the study area, the type of ecosystem, the category of service and the economic valuation methodology are analysed for the first time. The results highlight the need to continue expanding knowledge in relation to the temporal and spatial scale in the economic value of ecosystem services, the subjective nature of the estimates and the heterogeneity between the different social sectors with respect to the benefit obtained.

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Section: Revealed Preferences Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The economic valuation of ecosystem services: bibliometric analysis

Velasco-Muñoz

Aznar-Sánchez²,

Schoenemann³

et al. 2022

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“…In some cases, benefit transfers can also be implemented using integrated models that are embedded within partially/fully predesigned tools such as the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) 38 and the Natural Environment Valuation Online tool (NEVO) 39 , among other integrated modeling systems (Tallis and Polasky 2009;Bagstad et al 2013;Ferrini et al 2015;Richardson et al 2015;Bateman and Kling 2020). US EPA has recently developed BenSPLASH (Benefits Spatial Platform for Aggregating Socioeconomics and H2O Quality), a modeling platform for quantifying the economic benefits of water quality changes in the US (Corona et al 2020).…”

Section: Selection Of a Transfer Methodmentioning

confidence: 99%

Guidance to Enhance the Validity and Credibility of Environmental Benefit Transfers

Johnston

Boyle

Loureiro

et al. 2021

Environ Resource Econ

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Benefit transfer is the use of pre-existing empirical estimates from one or more settings where research has been conducted previously to predict measures of economic value or related information for other settings. These transfers offer a feasible means to provide information on economic values when time, funding and other constraints impede the use of original valuation studies. The methods used for applied benefit transfers vary widely, however, and it is not always clear why certain procedures were applied or whether alternatives might have led to more credible estimates. Motivated by the importance of benefit transfers for decision-making and the lack of consensus guidance for applied practice, this article provides recommendations for the conduct of valid and reliable transfers, based on the insight from the combined body of benefit transfer research. The primary objectives are to: (a) advance and inform benefit-transfer applications that inform decision making, (b) encourage consensus over key dimensions of best practice for these applications, and (c) focus future research on areas requiring further advances.In doing so, we acknowledge the healthy tension that can exist between best practice as led by the academic literature and practical constraints of real-world applications.

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“…One method is to directly ask affected individuals about the cost of the negative externality (stated preference) [36]. Another method, often used to estimate the marginal willingness to pay for a negative externality, is to analyse individuals' behaviours in a market (revealed preference) [37]. There are advantages and disadvantages to both methods [38], but we have chosen revealed preference for estimating the willingness to pay, since this case offers a market suitable for analysis, namely the real estate market through the so-called hedonic price method [39].…”

Section: Theoretical and Methodology Frameworkmentioning

confidence: 99%

The Socio-Economic Cost of Wind Turbines: A Swedish Case Study

Westlund

Wilhelmsson

2021

Sustainability

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The expansion of wind turbines plays a significant role in developing the ability of a country like Sweden to achieve climate-neutral energy production without relying on nuclear power plants. Wind-turbine energy production is expected to grow in the coming decades. Conflicts may arise between, on the one hand, the government and the energy authority, and, on the other hand, municipalities and property owners, especially if this expansion affects other economic activities, such as tourism and reindeer husbandry, or property values. This report aims to analyse the negative capitalization of wind turbines on property values in Sweden over the last ten years. Our conclusions clearly show a relatively significant capitalization and that this capitalization is relatively local, within eight kilometers of the wind power plant. Large wind turbines, or larger clusters of wind turbines in wind farms, impose a greater socio-economic cost on lower value properties.

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Revealed Preference Methods for Nonmarket Valuation: An Introduction to Best Practices

Cited by 15 publications

References 23 publications

The economic valuation of ecosystem services: bibliometric analysis

The economic valuation of ecosystem services: bibliometric analysis

Guidance to Enhance the Validity and Credibility of Environmental Benefit Transfers

The Socio-Economic Cost of Wind Turbines: A Swedish Case Study

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