Question

5. a) Fully compare and contrast contingent valuation and choice modeling. [7 marks b) Provide three practical examples each in the Ghanaian context for which you would apply contingent valuation and choice modeling. [3 marks c) With three specific examples in the Ghanaian context, compare intrinsic and instrumental value of a natural resource, and explain why both are important in [6 marks natural and environmental resource valuation. 6. a) Why can the economic surplus model be used to evaluate the benefits and costs of a project, and how can we determine producer and consumer benefits using such a [4 marks model? b) Over the past five years, Ghana's annual rice import bill has averaged about 700 million US dollars. Explain whether or not and why government should care about [5 marks this state of affairs.

Answer 1

Answering the 5^TH question as HOMEWORKLIB Guidelines:-

5 A). Contingent valuation is an estimation technique using which the quantified value of non-market resources like different types of environmental services and interventions can be calculated. Contingent valuation directly approaches the respondents and ask their feedback about the different environmental techniques and interventions. Choice modelling, on the other hand, is an analytical method using which a team predicts and analyses how the respondents will make preference to available set of choices. This way the survey can be modelled to get the most relevant feedback from the respondents.