Vatn, A. (2004): "Environmental Valuation and Rationality", Land Economics, 80(1):1-18.

Abstract:
Economic valuation of the environment is disputed. One reason for this is the number of anomalies observed. A reaction to these anomalies has been to add new auxiliary hypotheses to the core model. Another is just to dismiss the whole undertaking. This paper takes a third route and that is to use observations made in valuation studies to help improve choice theory. The paper focuses on two fundamental topics: the information problem and the issue of preference formation. The paper underlines the role of the social sphere in defining what becomes individually rational. While the findings may not simplify theory, they may help us become more realistic and to understand errors produced by illegitimate simplifications.

Key words: Choice theory, rational choice, environmental valuation, philosophy of science

To order: fax (+47) 6494 3012 or e-mail: ior@umb.no

(*) Annet arbeidssted enn IØR / Other workplace than IØR