VALUING ENVIRONMENTAL RESOURCES - A CONSTRUCTIVE APPROACH

The use of contingent valuation (CV) methods for estimating the econom ic value of environmental improvements and damages has increased signi ficantly. However, doubts exist regarding the validity of the usual wi llingness to pay CV methods. In this article, we examine the CV approa ch in light of recent findings from behavioral decision research regar ding the constructive nature of human preferences. We argue that a pri ncipal source of problems with conventional CV methods is that they im pose unrealistic cognitive demands upon respondents. We propose a new CV approach, based on the value-structuring capabilities of multiattri bute utility theory and decision analysis, and discuss its advantages and disadvantages.