Behavioural Economics, Benefit-Cost Analysis, and the WTP versus WTA Choice

Jack Knetsch

International Review of Environmental and Resource Economics, 2020, vol. 14, issue 2-3, 153-196

Abstract: Many of the findings from behavioural economics research offer useful opportunities to better understand and anticipate people's choices among alternatives and to improve policy design accordingly. Their use has, however, varied among fields — being widely employed in some and mainly ignored in others. Major issues and likely understatements resulting from current practice are illustrated in the recent assessment of the monetary value of damages resulting from the BP Deepwater Horizon oil spill.

Keywords: Choice of welfare measure; willingness-to-accept; willingness-to-pay; benefit-cost analysis; assessment of losses (search for similar items in EconPapers)
JEL-codes: D61 D90 H23 Q51 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:now:jirere:101.00000119

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