Scope for Valuation of Environmental Goods

IT IS FEASIBLE TO OBTAIN DIRECT APPROXIMATIONS OF VALUES OF ENVIRONMENTAL GOODS IN A CONTROLLED, SIMULATED MARKET EXPERIMENT. AN EXPERIMENT AT OREGON STATE UNIVERSITY WAS CONDUCTED TO DETERMINE TRADE-OFF VALUES FOR SIX VARIABLES - NATURAL SURROUNDINGS, VARIOUS TYPES OF NOISES, RECREATION PARK FACILITIES, VEHICULAR TRAFFIC, TRAVEL TIME TO WORK AND PARKING CONVENIENCE. THESE VARIABLES WERE CHOSEN ON THE BASIS OF ENVIRONMENTAL CONDITIONS AND THE COMMUNITY INTEREST AT OSU. IT WAS CONCLUDED THAT INCOME LEVEL NOT ONLY INFLUENCES THE CHOICE PATTERNS, BUT ALSO THE VALUE OF ONE VARIABLE RELATIVE TO ANOTHER. WITH INCREASING INCOME, TIME OR CONVENIENCE FACTORS BECAME LESS ATTRACTIVE AND BEAUTY OR SERENITY BECAME MORE ATTRACTIVE.