ABSTRACT
In the cost-benefit analysis literature, valuation techniques typically revolve around deriving a demand curve for the good in question in order to compute its value. The three most commonly used techniques are the contingent valuation method, hedonic pricing and the travel cost method. Hedonic pricing is an alternative valuation technique. The key underlying principle is to use price differentials in existing markets as proxies of prices with certain attributes. The travel cost method is a more recent development in valuation techniques. It is also known as the Hotelling–Clawson–Knetsch technique and is most often applied to estimate the value of recreational sites such as marine parks, mountain resorts and wilderness areas in North America. The valuation techniques and examples discussed thus far are all economic valuation techniques because they involve estimations of demand curves. The valuation techniques and examples discussed are all economic valuation techniques because they involve estimations of demand curves.
