Revealed Preference Methods for Nonmarket Valuation: An Introduction to Best Practices

Abstract

This article provides an introduction to the symposium on best practices for using revealed preference methods for nonmarket valuation. Nonmarket valuation is an essential tool in the benefit–cost analysis (BCA) of environmental goods and services. Here, we identify the role of BCA in several key U.S. Executive Orders, U.K. appraisals, and European Union Directives that inform decision-making concerning regulatory oversight. We describe the evolution of key mandates over the last three decades and discuss some examples of how the analyses performed under these mandates have impacted regulatory outcomes.