Midterm 1 solutions

A variety of answers were possible generally

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Unformatted text preview: swers were possible. Generally, economists measure the dollar values of environmental benefits using two techniques: 1. Stated Preference (Contingent Valuation) These include WTP or WTA surveys, for example asking individuals how much they would be willing to pay to preserve Hawaiian sea turtles. 2. Revealed Preference These include the travel cost and hedonic methods, for example calculating how much money people spend on travel in order to see the turtles. b. (3 points) Pick one method for measuring benefits, and provide a one sentence argument in favor of that method (as providing a good estimate of benefits) and a one sentence argument against that method. You may make these points either generally or using the example of valuation of sea turtles. Each method has...
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This note was uploaded on 01/31/2014 for the course BILD 3 taught by Professor Wills during the Winter '07 term at UCSD.

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