NON-COMPENSATORY PREFERENCE STRUCTURES IN NON-MARKET VALUATION OF NATURAL AREA POLICY

Michael Lockwood

Australian Journal of Agricultural Economics, 1996, vol. 40, issue 2, 17

Abstract: Non-compensatory preferences may form a significant component of individuals' values for non-market goods such as natural areas, especially in the context of a reduction in environmental quality. The widespread neglect of such preferences can result in erroneous estimates of changes in economic welfare. Non-market valuation using techniques such as contingent valuation therefore need to take into account the possibility that some individuals hold noncompensatory preferences. The formal structure of the lexicographic noncompensatory ordering is described, and the theoretical implications of an individual holding such preferences over some region of goods space is examined. A method for the empirical identification of non-compensatory preference orderings is outlined.

Keywords: Environmental Economics and Policy; Institutional and Behavioral Economics (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ajaeau:22394

DOI: 10.22004/ag.econ.22394

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