Stated preference and the estimation of environmental values

This paper reviews some of the principal issues involved in deriving accurate estimates of the value of environmental goods using stated choice methods. These encompass embedding and scope effects, and whether to value goods independently, sequentially, or simultaneously. Other issues concern the type of contingent valuation elicitation format to adopt. If the purpose of the study to value attributes of an environmental good, as well as the value of the good as a whole, then a stated choice experiment provides a more appropriate method. The paper also discusses the accuracy of stated preference results.