Economic theory and psychology of non-use values

Potential double counting across generations has led some opponents of the contingent valuation method to claim that non-use values should be eliminated from benefit estimates. This paper shows both theoretically and empirically that this conclusion is not warranted. Depending on individuals' perception of the feasibility of intergenerational transfers and the nature of interdependent preferences, stated willingness to pay for an environmental commodity may or may not include values that are double-counted. Paternalistic altruism and current overuse of a natural resource are shown theoretically to provide appropriate motives for bequest values which should be included in measures of environmental benefits.