USING CONTINGENT VALUATION METHOD TO VALUE ENVIRONMENTAL RESOURCES (REVIEW)

Contingent valuation method (CVM) is a kind of stated preference (SP) approaches which employs a hypothetical market to extract WTP or WTA for environmental goods. CVM has become one of the most widely used non-market valuation techniques due to its ability and flexibility to estimate total value, including non-use value. Based on a general review, the paper summarizes the main problems and controversies concerning CVM, namely, the involvement of non-use value into cost-benefit analysis, and validity and reliability of the results. According to the turning point in CVM studies after 1993, tests of validity and reliability are specially illustrated. A concluding remark is then presented and further study areas put it forward. It is believed that even in developing countries like China, CVM is still a promising method to value environmental goods, on the premise of extremely careful and proper conduction of the survey including questionnaire design, survey administration and data processing.