Non-market valuation: praise, protest and performance in environmental policy

A vast literature exists on environmental non-market valuation (NMV) research. The large volume of academic research appears to contrast with the actual use of non-market values in policymaking. Here, we investigate how, when, and why NMV is used to inform environmental policy in Australia. NMV researchers were surveyed about studies they believed to have influenced policy. Then, decision makers were interviewed about the level of influence that NMV has or has not had on their decisions. We find that researchers’ perceptions of the influence that non-market valuation has on policy and decision making are overly optimistic. Interviews with decision makers suggest that non-market valuation is not used widely or consistently in decision making. In fact, the majority of decision makers are unfamiliar with non-market valuation techniques. In spite of this, decision makers do view the concept of non-market valuation positively, and see that it could benefit environmental policy. Implications include that economists need to improve their communication of non-market valuation to decision makers, and offer simpler decision support frameworks in which the values can be used and interpreted for policy.