THE CASE FOR DIMINISHING MARGINAL EXISTENCE VALUES

This study addresses the debate over sensitivity of existence values m easured by contingent valuation to scope tests. We reconcile much of t he debate within one theoretical model. If marginal WTP for existence goods is diminishing, then a study that tested for sensitivity to scop e over a range for which marginal WTP is high would be more likely to detect sensitivity to scope than a study that focused on a range for w hich marginal WTP is much lower. An empirical model demonstrates this point for existence value of remote wilderness parks. These results ha ve significant implications for future contingent valuation work. (C) 1998 Academic Press.