Workshop: Valuation Methods and Willingness to Pay

Workshop: Valuation Methods and Willingness to Pay

During the month of October, iAGRI welcomed Prof Timothy Haab, an internationally recognized expert on methods for measuring the value of goods and services not adequately represented by market prices. Prof Timothy is a Chair of the Department of Agricultural, Environmental, and Development Economics at The Ohio State University, USA. Professor Haab conducted two days workshop on ‘’Introduction to Valuation Methods and Willingness to Pay”.

The workshop intended to generate understanding of the values that people place on goods and services is critical to making sound economic decisions. In many cases, markets provide an easy way for people to reveal value through their decisions to buy and sell goods and services. But in other cases, markets fail to accurately reflect values.

Whether it’s because the good or service being valued does not have a market, or existing markets fail to reflect the full value of the good or service, non-market valuation methods are needed to fully measure the costs and benefits of goods and services.

The workshop also served as an introduction to non-market valuation methods and the economic concepts of willingness to pay and willingness to accept in the context of developing countries. Through the use of current and classic examples, we will provide an introduction to the economics of valuation, the economic theory of measuring values and the practical tools economists have developed for measuring non-market values.

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At the end of introductory workshop, the attendee acquired knowledge and tools necessary to delve into the rapidly growing field of valuation as applied in developing countries.

Professor Haab has worked on several projects applying valuation methods in such diverse settings as payments for environmental services to the rural poor in developing countries, the value of improved drinking water access and quality in developing countries, the economic damages from oil spills, the environmental, health and resource effects of bio-based fuels, incorporating ecosystem service valuation into marine planning, the economic value of marine recreational fishing, the economic impacts of climate change, the economic costs of invasive species, the value of agricultural extension programs, and the impact of agricultural pollution on hypoxic zones of oceans.

As Chair of the Department of Agricultural, Environmental, and Development Economics at The Ohio State University, Professor Haab oversees a faculty of 21 world-class applied economists.