Issue 9: Value non-market goods and services

📣This time, we're looking at three ways to value goods that do not have a market price.

What is the value of a good? For most goods, we can infer their value from the market, but what about goods that are not traded in the economy? We’ve outlined different approaches that can be used to value non market goods and services.

We’re focusing on place-based wellbeing, using a hypothetical trip to the local park as an example.

Here’s a summary:
💡Revealed Preference methods estimate the value of non-market goods by using evidence on how people behave in the face of real-life choices.
💡Stated Preference methods estimate the value of non-market goods by directly eliciting individuals’ willingness to pay or willingness to accept compensation.
💡Wellbeing Valuation uses regression analysis to estimate the association between the non-market good and an individual’s satisfaction with their life.

At Simetrica-Jacobs, we’re experts in deploying all three!

❓Want to understand how you can value something like a park, public museum or canal? And how you can incorporate these valuations to inform better investment decisions or to make a business case? Need some advice? Get in touch with us today! Book a discovery session with Chief Economist Edward Dallas to find out more.

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