Chapter 7: BCA: Benefits Flashcards
1
Q
Downward shift in supply shows
A
benefits from reduced production costs as a result of reduced pollution levels
2
Q
4 ways to estimate WTP
A
preventative or mitigating expenditure
hedonic estimation
surrogate markets
contingent valuation
3
Q
Hedonic estimation is used when
A
the price of a market good is related to its characteristics
4
Q
Hedonic price function shows relationship between
A
price and air quality 1
5
Q
Hedonic demand function shows relationship between
A
WTP and air quality
6
Q
Contingent Valuation uses
A
the estimates of WTP as measures of the change in CS or net benefit of a benefit cost study
