The worth of a possum: Valuing species with the contingent valuation method

The focus of this paper is on methods of assessing the value people place o n the conservation of species for use in policy making. Of principal intere st is the relatively new methodology of contingent valuation, which is a me thod for asking people directly about their preferences. The paper presents an application of the contingent valuation method to the conservation of a n endangered species in the State of Victoria, Australia. The results empha sise the importance of careful survey design, implementation and analysis a s well as the precise definition of the environmental good being valued. Co nsequently, the contingent valuation method does provide information releva nt to decision making processes based on monetary economic considerations. Thus, in orthodox economic terms it makes sense to conserve species - but t here are other moral and ethical grounds for conserving species as well.