Investments in protective measures involve an initial immediate cost in exchange for a stream of potential benefits accruing over time in the form of reduced expected losses. This paper describes two studies in which individuals were asked both to make choices and indicate the maximum amount...

The use of contingent valuation (CV) methods for estimating the economic value of environmental improvements and damages has increased significantly. However, doubts exist regarding the validity of the usual willingness to pay CV methods. In this article, we examine the CV approach in light of...