Question

What are the limitations of the Stated Preference method to measure demand with environmental goods? (use...

What are the limitations of the Stated Preference method to measure demand with environmental goods? (use an example).

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : Stated preference method means that valuation of non market resources which does not have price and has only utilies for us. These environment good such as view of mountain has been priceless and it has been not directly sold in the market.

Limitations of stated preference methods are :

  • It is survey method so no actual result has been determined.
  • Proper willingness to pay for certain environment good to maintain proper balance is not accurate.
  • Costly and unrealistic method to measure the demand.
  • Properly analysis has been done.

Example : Stated preference method has been used to analysis for analysis how much willingness a person have in purchasing a particular product or service. How we determined that how much people pay for seeing the beautiful view of the mountains and it is unrealistic approach.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain two potential problems involved in stated preference methods for environmental valuation. Use an example to...
Explain two potential problems involved in stated preference methods for environmental valuation. Use an example to explain what makes thismethod attractive despite the potential problems.
What are the limitations of using duration as a measure of a bond’s price sensitivity to...
What are the limitations of using duration as a measure of a bond’s price sensitivity to interest-rate change
For the enthalpy of vaporization by gas chromatography. what are limitations for this method?
For the enthalpy of vaporization by gas chromatography. what are limitations for this method?
What limitations are encountered in the application of sublimation as a general method of purification?
What limitations are encountered in the application of sublimation as a general method of purification?
What are some of the limitations of activity based costing (ABC) ? please provide an example...
What are some of the limitations of activity based costing (ABC) ? please provide an example of using the wrong activity-driver to measure the level of activity and apply costs. (For example, number of passengers would be the wrong activity driver for landing fees for an airline if the landing fees are based on the number of flights).
What is willingness to pay? What does it mean? How is it measured (in relation to...
What is willingness to pay? What does it mean? How is it measured (in relation to what standard object from microeconomic theory)? What data do we need? What are limitations of WTP as a concept? Why is it challenging to measure WTP for environmental g/s? What are the two broad non-market valuation methods for measuring WTP in the environmental context? What are the five categories of costs measured in BCA? What are the three methods for measuring costs? What determines...
Briefly describe when you would use the extraction (shake-flask) method vs. the LC-MS method to measure...
Briefly describe when you would use the extraction (shake-flask) method vs. the LC-MS method to measure LogP. Include considerations about sample size and polarity.
What limitations apply to the use of Section 179 expensing in 2018? What would have been...
What limitations apply to the use of Section 179 expensing in 2018? What would have been different if this asset had been acquired in 2017?
What are two resource limitations and primary productivity in the ocean and use that to explain...
What are two resource limitations and primary productivity in the ocean and use that to explain why the upwelling region in the ocean (e.g. dertain costal areas) would result in high primary productivity and productive fishery.
Under what conditions would you use the median rather than the mean as a measure of...
Under what conditions would you use the median rather than the mean as a measure of central tendency? Why? Provide an example of two situations in which the median might be more useful than the mean as a measure of central tendency.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT