PROSPECTS FOR CONTINGENT VALUATION - LESSONS FROM THE SOUTH-EAST FORESTS

The Contingent Valuation Method (CVM) has been strongly criticised in Australia following two prominent applications. The aims in this paper are to review these criticisms and to demonstrate how, through an app lication of the method, these potential problems were addressed. The r esults of the application - a valuation of the conservation benefits o f the National Estate forests of south-eastern Australia - are present ed. A key feature of the application was the use of focus group testin g in the questionnaire design phase. Finally, an assessment is made of the future prospects for the use of the CVM in Australia.