The worth of a possum: Valuing species with the contingent valuation method

The focus of this paper is on methods of assessing the value people place on the conservation of species for use in policy making. Of principal interest is the relatively new methodology of contingent valuation, which is a method for asking people directly about their preferences. The paper presents an application of the contingent valuation method to the conservation of an endangered species in the State of Victoria, Australia. The results emphasise the importance of careful survey design, implementation and analysis as well as the precise definition of the environmental good being valued. Consequently, the contingent valuation method does provide information relevant to decision making processes based on monetary economic considerations. Thus, in orthodox economic terms it makes sense to conserve species - but there are other moral and ethical grounds for conserving species as well.