In which of the following circumstances is contingent valuation the only option to value the public good?
A) federal government valuing the cost of building a highway
B) local government valuing the additional cost of weekend garbage pickup
C) state government valuing various options to raise revenues
D) federal government valuing the cost of saving bald eagles

Question

Quizplus · Accepted Answer

Contingent valuation is the only option when the public good being valued does not have a market price or when market prices are not reflective of the true value or benefit of the good. Saving bald eagles is an example of a public good that has no market price, and therefore contingent valuation is the only way to estimate its value to society. Building a highway, weekend garbage pickup, and raising revenues all have market prices and are not solely reliant on contingent valuation to determine their value.

In Which of the Following Circumstances Is Contingent Valuation the Only