Contingent valuation and the activation of environmental norms

This paper uses contingent valuation (CVM) as the context in which to explore the implications of a model of altruistic norm-activation. A model is presented which provides a framework for thinking about the factors that individuals consider when formulating their responses to CVM questions, and the processes by which they bring such factors together. The activation of personal environmental norms, and hence positive willingness to pay, depends on four main categories of belief: awareness and acceptance of environmental need. consequences of personal action; responsibility for personal action: and acceptance of policy initiatives. The model is illustrated with a qualitative case study, and some of the implications for CVM are considered in light of these findings. It is argued that whilst notions of fairness may not present problems from a demand-prediction economic standpoint, such notions may be more problematic for the cost-benefit-analysis use of results. (C) 1998 Elsevier Science B.V.