The article "Contingent Valuation: A User's Guide" by Richard T. Carson, published in December 1999, provides a comprehensive overview of contingent valuation (CV), a survey-based method used to place monetary values on environmental goods and services not typically bought or sold in the market. CV is often the only feasible method for including passive use considerations in economic analyses, which has sparked significant controversy. The paper addresses the philosophical debate over whether passive use values should be included and the technical issues surrounding the reliability and validity of CV studies. Key points include: - **Philosophical Debate**: The inclusion of passive use values, which are the economic value derived from simply knowing or believing in the existence of a good, is a contentious issue. Some argue that these values are irrelevant, while others believe they should be explicitly considered. - **Technical Issues**: The paper discusses various tests and criteria for evaluating the reliability of CV studies, such as price sensitivity and scope insensitivity. It also addresses common criticisms, including the "warm-glow" effect and strategic behavior by respondents. - **Survey Design**: The quality of CV studies is assessed through the survey instrument, sample population, sample size, survey administration, and data handling. The paper emphasizes the importance of clear and accurate descriptions of the good and its alternatives, as well as the use of appropriate survey methods and statistical techniques. - **Future Directions**: The article highlights the need for more research to reduce the cost of CV surveys while maintaining reliability. It explores methods like choice-based conjoint analysis and combined telephone-mail-telephone surveys to achieve this goal. Overall, the paper provides a detailed guide for policymakers and researchers on how to design and interpret CV studies effectively.The article "Contingent Valuation: A User's Guide" by Richard T. Carson, published in December 1999, provides a comprehensive overview of contingent valuation (CV), a survey-based method used to place monetary values on environmental goods and services not typically bought or sold in the market. CV is often the only feasible method for including passive use considerations in economic analyses, which has sparked significant controversy. The paper addresses the philosophical debate over whether passive use values should be included and the technical issues surrounding the reliability and validity of CV studies. Key points include: - **Philosophical Debate**: The inclusion of passive use values, which are the economic value derived from simply knowing or believing in the existence of a good, is a contentious issue. Some argue that these values are irrelevant, while others believe they should be explicitly considered. - **Technical Issues**: The paper discusses various tests and criteria for evaluating the reliability of CV studies, such as price sensitivity and scope insensitivity. It also addresses common criticisms, including the "warm-glow" effect and strategic behavior by respondents. - **Survey Design**: The quality of CV studies is assessed through the survey instrument, sample population, sample size, survey administration, and data handling. The paper emphasizes the importance of clear and accurate descriptions of the good and its alternatives, as well as the use of appropriate survey methods and statistical techniques. - **Future Directions**: The article highlights the need for more research to reduce the cost of CV surveys while maintaining reliability. It explores methods like choice-based conjoint analysis and combined telephone-mail-telephone surveys to achieve this goal. Overall, the paper provides a detailed guide for policymakers and researchers on how to design and interpret CV studies effectively.