Estimate both ÒuseÓ and Ònon-use
valuesÓ
Assign dollar
values to non-use values of the environment—values that do not involve market
purchases and may not involve direct participation (bequest value, existence value,
option value) . These values are sometimes referred to
as Òpassive useÓ values.
ÒcontingentÓ valuation, because people
are asked to state their willingness to pay, contingent on a specific hypothetical
scenario and description of the environmental service. (Òstated
preferenceÓ rather than inferring actual choices as in "revealed preferencesÓ).
People are
willing to pay for non-use, or
passive use, environmental benefits, but how much?
CVM is highly controversial.