How to Succeed your Contingent Valuation?
- March 19, 2018
- Posted by: RSIS
- Category: Economics, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue III, March 2018 | ISSN 2454-6186
# Structure Research on Environment and Sustainable Development, University of Mohamed V,
Faculty of Legal, Economic and Social Sciences, Souissi, Rabat, Morocco
Abstract — The Contingent Valuation Method (CVM) is one of many ingenious methods developed in the late 1970s and early 1980s to evaluate non-market goods. It represents the most promising approach developed to determine the public’s willingness to pay or to accept for public goods. However, like all sophisticated methods, it presents challenges and the use of contingent valuation surveys to obtain individuals answers to hypothetical situations is not easy at all. In order to be successful, we must follow some method guidelines perfectly and therefore evaluate and use the results of the CVM with confidence.
Keywords — Contingent Valuation Method, willingness to pay, willingness to accept, non-market good, survey, hypothetic scenario.
Man’s relationship with his natural environment is subject to several disciplines that relate to religion, culture, politics or economics. The real awareness of environmental problems began with the Cold War by an internal challenge from Western and Capitalist society, and external with the emergence of the third world that calls into question especially the use of its natural resources (Fougere and Seydi, 2016). With the deterioration of ecosystems, taking into account the environmental value in any action that may affect it has become indispensable. This is possible through a monetarization of this value so that we can compare the values obtained with the market goods contributing to this and make more explicit the arbitrations that the society must face. Achieving this goal involves the use of several methods that differ in their advantages and limitations. The most frequent and recognized method is the “Contingent Valuation Method” (CVM) (Fougere and Seydi 2016, Amegnaglo and al. 2017). According to Bockstael and al. (2000), the use of contingent valuation to estimate these values is done by proposing choices with well-defined consequences or potential costs.
The CVM is used to estimate the economic values of all types of environmental services. It can be used to estimate use and non-use values at the same time, and is the most widely used method for estimating non-use values, mostly used in many environmental domains such as air, noise, biological diversity, etc. It is also the most controversial nonmarket valuation method (Abdul Rahim 2008, Lopez 2004).