Theoretical-Mathematical Approach of the Contingent Valuation and Travel Cost Methods

Abstract

The evaluation of environmental (nonmarket) goods starts from theoretical- mathematical assumptions that are sometimes omitted and can generate errors in the design of the survey and bad interpretations of the results. The Contingent Valuation (CV) and the Travel Cost (TC) are based on (compensating and equivalent) welfare measures to assess the Willingness to Pay (WTP) and the Willingness to Accept (WTA). In this paper we show the theoretical foundations of the WTP and WTA and their influence in surveys design.