What is a conditional award?

Conditional valuation is a strategy that attempts to measure or evaluate the benefits associated with certain sources that are out of the range of assignment of the market price. From this point of view, this type of economic technology attempts to take into account the factors that affect consumers' purchasing decisions in a way that cannot be measured in terms of price. In principle, this type of valuation focuses on what consumers are willing to pay to have access to the benefits associated with a certain type of activity.

One of the simplest ways to understand the concept of conditional awards is to consider the case of ongoing development of alternative energy forms in many countries around the world. For many people, the value of continuing the development of alternatives as wind energy, solar energy and biofuels, but only a matter of money, but a matter of recognizing how support for this effort will ultimately have a positive impact on the environment. To have an idea of ​​the practical usefulness thatThis effort provides, but also the indirect benefits that people gain from this effort provides a conditional valuation of the platform for creating this type of accounting. As an economic technique based on the survey, this approach collects data that includes how consumers feel about alternative energy forms and what they consider to be long -term and short -term benefits of access to energy alternatives.

The process of conditional valuation is often useful in terms of assessing the total value associated with any type of activity. Although the approach is often used as a means of identifying intangible benefits associated with the event or activity, it can sometimes also be used to provide a perspective on a far -reaching impact of an unfortunate situation. For example, the use of a conditional ALONG Award with a strategy based on the use of oil leakage results or deforestation of a given geographical areaAsti provides a more comprehensive understanding of the long -term consequences of the action. In this request, it is easier to assess the repressive compensation of damage that helps to compensate for parties that have been injured in some way as a result of the event.

In support in many areas, as a practical means to assess the impact of a specified set of factors, the detective valuation sometimes focuses on the subjective nature of the process. This is considered to be a defect that could cause different results to the valuation if it changes or two factors will change or omitted. At the same time, there is no agreement on a viable alternative approach to the accounting of data collected by means of a conditional valuation and the use of such data in a manner that is useful for understanding the overall value of any event or effort.