Question

What are some revealed and stated preference techniques you can use when addressing the environmental problem of excess C02 build up due to vehicles? What assumptions can be made to warrant the use of a particular technique? What would be the best method/technique to use for a study such as this study and why?

What is the main use of the type of valuation method (consumptive value or non-consumptive value), and why is it of use in the larger economic situation? Could additional methods be used to study the impacts of this situation? Why are they the most appropriate way of measuring the impact identified?

Answer 1

Addressing true problems we need to understand what the actual behaviour and consumptions pattern is and hence revelead preference method gives good sense of how consumers value the environment rather than stated preference method which is ambigous and is merely unproven statements .

We need to assume that the revelead model technique surveys host of people and views are unbiased and genuine. This type of revelead method is highly useful in Economic analysis as we get to know consumption pattern of vehicles and emissions as well as purchasing behaviour in reality and how does invention in vehicles lead to change in carbon dioxide emission rather than getting just sttaic normative statement which cannot be authenticated.

Various additional methods like focus group discussions and live participation in forums help to seek divergent views of CO2 emissions and its recommended solutions. They become most appropriate way of measurement as any sort of bias or prejudices are cancelled and holistic view from different sets are amalgamated to get coherent universal strategy.