The Contingent Valuation Method

In the contingent valuation method direct surveys are used to ask people what they are willing to pay (WTP) or alternatively what they are willing to accept for the loss of (WTA) an amenity. Interestingly this method can be used to access non-user values, i.e. although you may not read the community newspaper or go to the park you may recognise that others do and that it provides a useful service for which you are willing to pay. Non-use value is part of the Total Economic Value (TEV) concept shown in figure 7. This indicates the "good will" and intrinsic value issues. Even people not using a particular amenity may consider that future generations might (Bequest Value) and, for example, that whether or not we ever travel to the rain forest we might still value its preservation (Existence Value).