Monetary valuation of environmental goods: alternatives to contingent valuation

Abstract

Most environmental goods, like clean water, scenic beauty or peace and quiet, are either unpriced or priced too low. This may lead to an overuse of these goods, and hence to extinction, exhaustion, or pollution. One way to find prices for these goods, is by using monetary valuation methods, of which the contingent valuation method is the best known. However, it is not at all clear that this method is the best in all situations. Therefore, in this book several alternative methods are introduced. Moreover, they are tested in two empirical studies. The first empirical study attempts to value the loss of nature and recreation areas when the new residential area IJburg will be built in the lake 'IJmeer', to the east of Amsterdam. The second study values aircraft noise nuisance in the surroundings of Schiphol Airport, the Dutch national airport near Amsterdam.