Nonparametric Bounds on Welfare Measures: A New Tool for Nonmarket ValuationJournal of Environmental Economics and Management
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AbstractIn this research, we adapt and extend previous work on nonparametric bounds for welfare measures. We present a procedure for estimating upper and lower bounds on each consumer's individual willingness to pay for an environmental improvement. The exciting aspect of this work is that these bounds are derived using only observed quantities and prices of visits to a recreation area without resorting to any parametric assumptions on demand or utility. In Monte Carlo simulations, we find that the bounds have the potential to be narrow enough for policy purposes.
Citation InformationJohn Crooker and Catherine Kling. "Nonparametric Bounds on Welfare Measures: A New Tool for Nonmarket Valuation" Journal of Environmental Economics and Management Vol. 39 Iss. 2 (2000) p. 145 - 161
Available at: http://works.bepress.com/catherine_kling/85/