Question

allowed 4 questions please answer all 4

1.

2.

3.

4.

Answer 1

One of the indirect approaches that is used to measure the value of an environmental good is the travel cost. Among the following the one that is not a disadvantage of a travel cost models is "they are reliant on people's stated value of a resource". Thus, the correct answer is option C. Revealed preference is the technique that is used estimate the use of a value of a good. Contingent value method is a survey technique used to measure the value of environmental services such as to determine aggregate willingness to pay among sample respondents to know their willingness to pay for a particular environmental good. Among the following the one that is not a revealed preference method economist use to value environmental benefits is "Contingent valuation". Thus, the correct answer is option A. Contingent value method is a survey technique used to measure the value of environmental services such as to determine aggregate willingness to pay among sample respondents to know their willingness to pay for a particular environmental good. Among the following that are potential problems with contingent valuation studies are imperfect information, Strategic bias in bidding games), Sampling bias, Responses depend on moral satisfaction, Implied value cues and Interviewer bias. Thus, all the given options are correct.

Hedonic price method is the values of environmental services can be determined from price variations in commercial commodities/services that are highly sensitive to the environmental services. Thus, it is an example of "Hedonic Price method". Thus, the correct answer is option C.