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The Green Book refers to two techniques for the valuation of non-market impacts: Stated
Preference and Revealed Preference methods. Stated Preference uses specially constructed questionnaires to elicit estimates of people‘s Willingness to Pay for (or Willingness to Accept) a particular outcome. Revealed preference observes people‘s behaviour in related markets. These preference-based‘ techniques have been in use for some time as an essential part of Social CostBenefit Analysis. During this time, the behavioural sciences and other research has built up an evidence base about the potential uses of these methods, as well as their limitations.new mehods in valuation

 

 

 

 

 

Author: The SROI Network

Date: 17 February, 2012

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