Zerbe and Bellas, Chapter 7

Shadow (non-market) Values

Travel Cost Method

1. Zonal TCM [example.xls]
2. Individual TCM
   a. single-site
   b. multi-site
3. Problems
   a. opportunity cost of time
   b. multi-purpose / overnight trips

Hedonic Price Method

1. Housing Market
2. Labor Market
3. Problems
   a. sample selection
   b. multi-market methods
   c. TCM and Hedonic markets

Averting Behavior

1. Defensive expenditures

Value of Statistical Lives

1. The Word - Priceless
2. VSL = WTP/change in risk
3. Examples: DOT, Blomquist (2003)

Stated Preferences

1. Types
   a. Contingent valuation
   b. Contingent behavior
2. Types of Values
   a. TV = UV + NUV
   b. VSL
3. Issues
   a. hypothetical bias => certainty questions, information about substitutes and income reminder
   b. lack of experience => ask a behavioral question (e.g., referendum question, or CB)
   c. elicitation question (OE, CE) => referendum question
   d. embedding => scope test
   e. strategic bias => referendum question
   f. information bias =>
4. Additional Reading
   a. A practitioner's primer on the CVM [pdf]
   b. CVM and BCA [pdf]

Benefit Transfer

1. Benefit estimate transfer [example]
2. Benefit function transfer
3. Meta-analysis transfer [pdf]
4. Additional Reading: Dumas, Schuhmann and Whitehead [AFS 2005].