Contingent Valuation of Nonmarket Benefits in Project Economic Analysis: A Guide to Good Practice

This guide explains how to measure people's willingness to pay for goods and services, such as improved air quality, that are not traded in a market. It aims to help improve the assessment of potential investment projects. Accounting for the value of nonmarket benefits and costs is an essential part of project economic analysis. The contingent valuation method (CVM) is a stated preference approach used in many areas of public policy, including water supply and sanitation, health, tourism, and cultural heritage. This book aims to support practitioners who are engaged to prepare and implement CVM studies as part of investment appraisal.