Do cost-benefit analyses favour environmentalists?
Working paper
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Date
1993-02Metadata
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- Discussion Papers [1002]
Abstract
Money and environmental quality units are considered as unit for aggregating willingness to pay. For those with a high willingness to pay for environmental quality, the choice of money as aggregation unit is most favourable. Arguments for either choice of aggregation unit are discussed, and I argue that none of them is convincing, and that both choices are equally natural. Thus in the choice between two equally natural procedures, the conventional choice favours a particular group. On the other hand, with no "correct" choice we cannot conclude that the conventional method is "biased".