Revealed Preference Methods

This chapter provides training on the theory and practical applications of the

following revealed preference methods of valuation of environmental goods/ natural resources.

The methods discussed here include:

Market-based methods

o Direct market prices

o Market prices of alternatives or substitutes

Human capital

Production function/ productivity method

Travel cost method

Hedonic pricing

Cost based methods

o Damage avoided

o Replacement costs

Preventive/ averting expenditure