- Stephen Smith
‘Economic information and values in environmental policy decisions’ considers the ways in which environmental economists try to capture the value that people place on environmental quality, the quality of life, and other factors affecting judgments on environmental policy. Two key areas are discussed: hedonic pricing, which tries to infer environmental values from observed behaviour in non-environmental markets such as the housing market, and the contingent valuation approach (CVA). CVA values things that do not have market prices by asking people how much they would value having more or less of them. Some examples of where CV has been used include species conservation, environmental damage from pollution accidents, and improvements in air quality.