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Contingent valuation (CV) is used to estimate a neighbourhood's willingness to pay (WTP) to preserve a 5.5-acre parcel of undeveloped land in Boulder, Colorado, that provides views, open space and wildlife habitat. Households were surveyed to determine bounds on their WTP for preservation. An interval model is developed to estimate sample WTP as a function of distance, income and other characteristics. The model accommodates individuals who might be made better off by development and addresses the accumulation of WTP responses at zero. Weighted sample WTP estimates are aggregated to obtain the neighbourhood's WTP. This application demonstrates that contingent valuation is a flexible policy tool for land managers and community groups wanting to estimate WTP to preserve undeveloped urban land.
Breffle et al. (Wed,) studied this question.