Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

A Primer on Nonmarket ValuationAverting Behavior Methods

A Primer on Nonmarket Valuation: Averting Behavior Methods [Averting behavior refers to actions taken to defend against environmental or other hazards, whether by reducing exposure to hazards or by mitigating adverse effects of exposure. This chapter examines how information on averting behavior can be used to improve nonmarket valuation. The chapter describes the history, theoretical foundation, and empirical application of averting behavior methods. These methods support estimation of economic benefits of public policies, especially those that reduce morbidity or mortality, in a way that is consistent with utility maximization and is based on observable behavior. The chapter: (1) shows how ignoring averting behavior may cause an invalid measurement of physical and economic damages of pollution or other hazards, and how controlling for averting behavior may improve welfare measurement; (2) explains several ways of using information on averting behavior to estimate the benefits of environmental improvement; (3) provides a simple empirical illustration; and (4) argues that the validity of welfare measurement using averting behavior methods depends on how the challenges of joint production, unknown prices of averting actions, and identification of the effects of pollution and averting behavior are met.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Primer on Nonmarket ValuationAverting Behavior Methods

Part of the The Economics of Non-Market Goods and Resources Book Series (volume 13)
Editors: Champ, Patricia A.; Boyle, Kevin J.; Brown, Thomas C.

Loading next page...
 
/lp/springer-journals/a-primer-on-nonmarket-valuation-averting-behavior-methods-09OHamEgQI
Publisher
Springer Netherlands
Copyright
© Springer Science+Business Media B.V. (outside the USA) 2017
ISBN
978-94-007-7103-1
Pages
293 –346
DOI
10.1007/978-94-007-7104-8_8
Publisher site
See Chapter on Publisher Site

Abstract

[Averting behavior refers to actions taken to defend against environmental or other hazards, whether by reducing exposure to hazards or by mitigating adverse effects of exposure. This chapter examines how information on averting behavior can be used to improve nonmarket valuation. The chapter describes the history, theoretical foundation, and empirical application of averting behavior methods. These methods support estimation of economic benefits of public policies, especially those that reduce morbidity or mortality, in a way that is consistent with utility maximization and is based on observable behavior. The chapter: (1) shows how ignoring averting behavior may cause an invalid measurement of physical and economic damages of pollution or other hazards, and how controlling for averting behavior may improve welfare measurement; (2) explains several ways of using information on averting behavior to estimate the benefits of environmental improvement; (3) provides a simple empirical illustration; and (4) argues that the validity of welfare measurement using averting behavior methods depends on how the challenges of joint production, unknown prices of averting actions, and identification of the effects of pollution and averting behavior are met.]

Published: Feb 11, 2017

Keywords: Averting; Avoidance; Defensive; Mitigating; Behavior; Expenditure; Self-protection; Value of statistical life; Mortality; Morbidity; Health; Valuation; Willingness-to-pay; Damage function

There are no references for this article.