Contingent valuation method (CV)

Contingent valuation method (CV) is a survey-based method used in economics to estimate the willingness of people to pay for public goods or services. It is commonly used in environmental and natural resources policy and planning to determine the amount of compensation or restitution a person or group should receive for a public good or service for which a market does not exist. The CV method involves asking people what they would be willing to pay for a particular public good or service. The information gathered from such questionnaires is then used to assess the total economic value of the public good or service. CV is one of the most widely used methods for valuing public goods and services because of its broad scope, relatively low cost, and its ability to quantify values in monetary terms.