Evaluation of the Utility Function of an Environmental asset: Contingent valuation Method (CVM)

Bouchrika Ali, Issaoui FakhriI and Jouber Habib

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this paper is to introduce the Contingent valuation Method (CVM) as an efficient method allowing to modify the utility level, of an economic agent to following the consumption of environmental goods. In the absence of the market for natural assets, the CVM allows us to create a hypothetical market to evaluate the economic value of those assets by purchase and sale transactions. However, this valuation can be constrained with the quality problem of the physical nature of those environmental assets. The theoretical framework had shown that a change in the utility function and consumer surplus on the one hand, price and profit of the monopoly on the other hand, is be needed to keep the measures of economic efficiency and social equity.

Keywords: CVM; Environmental assets; utility function; willingness to pay (WTP) (search for similar items in EconPapers)
JEL-codes: Q51 Q58 (search for similar items in EconPapers)
Date: 2014-12-06
New Economics Papers: this item is included in nep-env and nep-upt
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https://mpra.ub.uni-muenchen.de/60680/1/MPRA_paper_60421.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:60421

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