ABSTRACT
Introduction .............................................................................................................. 15 Revealed Preferences ............................................................................................... 16
Travel Cost Method ........................................................................................ 16 Averting Behavior, Defensive Expenditures, and Replacement Cost ............. 16 Hedonic Pricing Method ................................................................................. 17
Stated Preferences .................................................................................................... 17 The Contingent Valuation Method .................................................................. 17 The Stated Choice Method ............................................................................. 18 Benefit Transfer .............................................................................................. 18 Input/Output Analysis ..................................................................................... 19
Examples from the Literature .................................................................................. 19 Water Quality in Two Pennsylvania Watersheds: Stated Choice Method....... 19 Exotic Invaders in Yellowstone Lake: Contingent Valuation Method ............ 21 Issues of Scale .................................................................................................23 Outdoor Recreation: Travel Cost Method .......................................................23 Wetlands in North Carolina: Hedonic Pricing Method ...................................24
Combining Studies: Benefit Transfer .......................................................................25 More on Scale ..........................................................................................................27 Summary ..................................................................................................................27 References ................................................................................................................27
In the hypothetical benefit-cost analysis (BCA) in Chapter 1, Friends of Spoon River determined that two options were available for their restoration. The benefits were estimated for each option, but you may ask specifically how could those numbers be calculated? How can the restoration have monetized benefits? Economists use two broad categories of preference observation-revealed and stated preference techniques-to estimate the economic values of restoration. These techniques and
