EconPapers    
Economics at your fingertips  
 

Fuzzy Logic and Preference Uncertainty in Non-market Valuation

Lili Sun and Gerrit van Kooten

No 37021, Working Papers from University of Victoria, Resource Economics and Policy

Abstract: In seeking to value environmental amenities and public goods, individuals often have trouble trading off the (vague) amenity or good against a monetary measure. Valuation in these circumstances can best be described as fuzzy in terms of the amenity valued, perceptions of property rights, and the numbers chosen to reflect values. In this paper, we apply fuzzy logic to contingent valuation, employing a fuzzy clustering approach for incorporating preference uncertainty obtained from a follow-up certainty confidence question. We develop a Fuzzy Random Utility Maximization (FRUM) framework where the perceived utility of each individual is fuzzy in the sense that an individual’s utility belongs to each cluster to some degree. The model is then applied to a Swedish survey that elicited residents’ willingness to pay for enhanced forest conservation. The results from fuzzy models are generally ‘better’ than those obtained using the traditional random utility framework.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 33
Date: 2005-10
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://ageconsearch.umn.edu/record/37021/files/WorkingPaper2005-11.pdf (application/pdf)

Related works:
Working Paper: Fuzzy Logic and Preference Uncertainty in Non-market Valuation (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uvicwp:37021

DOI: 10.22004/ag.econ.37021

Access Statistics for this paper

More papers in Working Papers from University of Victoria, Resource Economics and Policy
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2021-08-31
Handle: RePEc:ags:uvicwp:37021