Revealed preference approaches for nonmarket valuation methods that inform environmental policy: Introducing best practices

Abstract

This article provides an introduction to the symposium on best practices for using revealed preference methods for nonmarket valuation. Nonmarket valuation is an essential tool in the benefit-cost analysis of environmental goods and services. Here we identify the role of benefitcost analysis in several key U.S. Executive Orders, U.K. appraisals, and E.U. Directives that inform decision making concerning regulatory oversight. We describe the evolution of key mandates over the last three decades and discuss some examples of how the analyses performed under these mandates have impacted regulatory outcomes.