Exploring existence value

The notion that individuals value the preservation of water resources independent of their own use of these resources is discussed. Issues in defining this value, termed “existence value,” are explored. Economic models are employed to assess the role of existence value in benefit‐cost analysis. The motives underlying existence value are shown to matter to contingent valuation measurement of existence benefits. A stylized contingent valuation experiment is used to study nonusers’ attitudes regarding projects to improve water quality in the Chesapeake Bay. Survey results indicate that altruism is one of the motives underlying existence value and that goods other than environmental and natural resources may provide existence benefits.