Essays on the Validity and Reliability of Non-Market Valuation Methods. Stavanger: University of Stavanger, 2020 (PhD thesis UiS, no. 532)

Abstract

This dissertation makes important contributions to the literature of non-market valuation methods. A vast bulk of the literature has focused on ensuring the validity and reliability of non-market valuation methods, but many challenges remain. Throughout the dissertation, I focus on three of these challenges: 1) addressing high multicollinearity in revealed preference data, 2) providing an answer to the scope insensitivity phenomenon, and 3) tackling misspecification when estimating revealed or stated preference data. I address these challenges in order to obtain both valid and reliable estimates of welfare change. More importantly, my dissertation shows that non-market valuation methods are themselves both valid and reliable.