Resource

Method Factsheet - Stated Preference Valuation Methods

Author/Contact:

Dr Paula Harrison,

Land Use Group,

Centre for Ecology and Hydrology,

Lancaster Environment Centre,

Library Avenue,

Bailrigg,

Lancs,

LA1 4AP

+44 (0) 1524 595858

paulaharrison@ceh.ac.uk

Publication date:

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Resource description:

Stated preference valuation is family of techniques which use individual respondents' statements about their preferences to estimate change in utility associated with a proposed increase in quality or quantity of an ecosystem service or bundle of services. Respondents are presented with one or more hypothetical policy or project scenarios that lead to a specified environmental change compared to a baseline situation. The answers respondents give, in the form of monetary amounts, ratings, or other indications of preference, are scaled following an appropriate model of preferences to yield a measure of value of the proposed ecosystem service change.

Requirements:

  • Requires new valuation data, e.g. based on surveys
  • Requires working with multidisciplinary researchers and stakeholders
  • Licensed software packages and ability to manipulate software required

Advantages:

  • Recognised and established approach within environmental economics
  • Covers a wide range of ES use and non-use values
  • Trade-offs between ES and a few other context characteristics can be evaluated using choice experiments

Constraints:

  • Information problems - making it clear which individual or combinations of ecosystems services are included in valuation scenarios.
  • Respondents unwillingness to accept trade-offs between ecosystem services and money (e.g. for moral, or cultural reasons)
  • Rational choice assumptions and biases - there are a range of potential biases in people's willingness to pay, e.g. their context or role, the prices stated, the order in which parts of ecosystems are valued etc.

Licence:

  • Free, no licence

Development stage:

  • Full, working product
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