McFadden, Daniel and Train, Kenneth: Contingent valuation of environmental goods—a comprehensive critique
Edward Elgar Publishing, Cheltenham, UK, 2017, 306 pp, Hardcover, 100£
The book titles “Contingent Valuation of Environmental Goods—A comprehensive Critique”, although it discusses limits and challenges of stated preference methods (contingent valuation (CV) and choice experiments (CE)). The book focuses on a range of important issues around the value of nature and natural assets. In particular, it surveys a long running debate around the validity and reliability of the monetary valuation of environmental goods and services. This debate has consequences not just for environmental policy in general but also for the legal resolution of environmental damage situations such as oil spills and others. Chapter 6, authored by an internationally renowned economist Daniel McFadden, provides a comprehensive overview of the history and the development of CV and CE methods. The foundation of stated preference (SP) methods in neoclassical demand theory, is illustrated by an example with the main limitations of SP methods analysed in more detail. McFadden acknowledges...
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