EX ANTE NON-MARKET VALUATION FOR NOVEL PRODUCT: LITERATURE REVIEW

Sika Gbegbelegbe Dofunsou () and James Lowenberg-DeBoer ()
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James Lowenberg-DeBoer: Department of Agricultural Economics, College of Agriculture, Purdue University

No 08-02, Working Papers from Purdue University, College of Agriculture, Department of Agricultural Economics

Abstract: This paper provides a critical review of the literature on non-market valuation methods to estimate the welfare impact of novel products; it is the first study to assess both observed data- and perception-based methods as non-market valuation methods. Observed databased methods include budgets, regression, mathematical programming, and simulation. Perceptions-based methods include the contingent valuation method, choice-based conjoint analysis and experimental methods. Findings imply that the preferred observed data-based method to estimate the ex ante economic impact of a new technology on the welfare of the farm household is a combination of simulation and mathematical programming. The preferred perceptionbased method for estimating the ex ante impact of a novel product on the welfare of an economic agent is represented by experimental methods. Findings also imply that observed-data based methods and more specifically mathematical programming are more popular for estimating the ex ante farm-level economic impact of a new technology. On the other hand, perception-based methods are more popular for estimating the economic impact of a novel product for consumers.

Keywords: Staff working papers; Dept. of Agricultural Economics; Internet publications; Purdue University (search for similar items in EconPapers)
JEL-codes: B0 B4 C0 C6 R2 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2008
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:pae:wpaper:08-02

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