Using Conjoint Analysis To Value Ecosystem Change

Abstract

Economists have developed a variety of methods to measure the values of environmental goods and services. Conjoint analysis (CJ) is a technique developed by mathematical psychologists to establish the structure of preferences across multi-attribute alternatives. It is a type of stated-preference method that has captured the attention of economists for purposes of analyzing preferences toward environmental goods and services. This paper outlines the applicability of CJ to environmental valuation, illustrates applications and valuation issues in the literature, and presents an application of CJ to valuing a Pennsylvania watershed quality improvement.

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