The benefit estimation method that uses surveys about hypothetical market conditions is
A) the averting expenditure method
B) the contingent valuation method
C) the travel cost approach
D) the political referendum approach

Question

Quizplus · Accepted Answer

The contingent valuation method involves conducting surveys to estimate the economic value of environmental goods or services. Respondents are typically asked to state their willingness to pay (WTP) or willingness to accept compensation (WTA) for a hypothetical change in market conditions, such as an improvement in air quality or an increase in natural resource availability. This method is useful for estimating non-market values and assessing the potential benefits of environmental policies or projects.

The Benefit Estimation Method That Uses Surveys About Hypothetical Market