Field Testing Existence Values: An Instream Flow Trust Fund for Montana Rivers (1991)
Paper Number: EE-0282
Document Date: 01/04/1991
Author(s): Duffield, John W., Patterson, David A.
Subject Area(s):
Economic Analysis, Existence Value, Valuation, Contingent Valuation Survey, Water Quality, Water Flow
Keywords: Economic Analysis, Existence Value, Valuation, Contingent Valuation Survey, Water Quality, Water Flow
Abstract:
This paper describes a theoretical framework for the comparison of individual responses in a hypothetical contingent valuation setting and a simulated market (or actual cash transaction setting). The total valuation framework includes both direct use as well as existence services. The model is applied to valuation of several instream flow resources for which the existence motive is anticipated to be significant. The payment vehicle is a trust fund that was set up through the cooperation of The Montana Nature Conservancy. To the author's knowledge, this is the first time a field test has been implemented to examine the validity of contingent valuation for measuring primarily nonuse values.
This paper is part of the Environmental Economics Research Inventory.