This paper discusses the validity of the contingent valuation method (CVM) and presents the results of a CVM survey we conducted to estimate the nonmarket value of restoring a salt marsh in New Haven, Connecticut. The literature suggests that CVM is valid, but results are often biased by poor survey design. Using a survey that was extensively pretested, we addressed potentially problematic issues such as payment vehicle bias, information bias, and hypothetical bias. We also combined techniques from conjoint analysis. Fifty-one households near the West River in New Haven were surveyed on Saturdays in March and April 1996. The households represented a wide range of socio-economic characteristics. Survey respondents were provided with background information including the current condition of the river and possible costs and benefits of restoration. Respondents were asked if they supported or opposed the restoration. Their maximum willingness to pay either for the restoration, or to keep the river in its current condition was solicited.

The contingent valuation survey performed well and was effective in educating participants about the current condition of the West River, the restoration measures proposed, and the possible impacts of the restoration; it was also effective in obtaining willingness to pay responses from people interviewed. Over three-quarters of people interviewed supported the proposed opening of the tidegates (Table 1). Moreover, this support extended to a willingness to pay considerable amounts of money for the restoration. There were many $100 WTP bids (and a few $200 bids) and many bids of $25 or less. Only one value occurred between $25 and $100. As a result, there is a wide difference between mean WTP ($61.41) and the median value ($25.00), and the standard deviation is large ($100.22).

People clearly have high values for nonmarket and even nonuse environmental resources. Without a means to estimate their economic value, these significant amenities will be ignored and thus not protected. Contingent valuation can be an effective method of obtaining price estimates for non-market values that would be excluded from consideration in traditional economic decision-making because they have no associated price. Consequently, economic valuation has a crucial role to play in preserving and restoring priceless environmental resources. We conclude that a carefully designed contingent valuation survey is a promising method for bringing nonmarket economic values into the cost-benefit analysis of restoring the West River salt marsh.