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.