Beyond the Bottom Line: Nonmarket Stated and Revealed Preference Methods for Community Resilience and Adaptation Planning

Abstract

This report details the importance of nonmarket valuation techniques for community resilience planning. Community resilience planning decisions involve making trade-offs between the benefits and costs of different resilience projects. In order to make those decisions about tradeoffs, the valuation of each benefit and cost must be accurately measured ad communicated in a meaningful way. Often community resilience projects involve valuing a good or service that is not sold in a traditional market, so nonmarket valuation is used in these cases. This report details commonly used nonmarket valuation methods (NVMs) that fall under the categories of revealed or stated preference techniques. The report also enumerates considerations for which methods are most appropriate in given circumstances. Additional considerations in the use of NMV, especially, in BCA, are noted.

Christina Gore

Research Economist

I am a research economist in the Applied Economics Office at NIST, working on environmental, behavioral, and community resilience economics.