- How to place a value on environmental benefits? Concept is same as in micro.
- Challenge is that we don't see prices. We try to infer what people would pay from their actions.
- Examples -- travel cost method, averting expenditure.
- How to value the potential loss of life.
- Stated preference.
Required ReadingsKO pages 44-55
BH Ch 6
Portney (1994) [link]