The paper discusses some of the criticisms of contingent valuation (CV) and allied techniques for estimating the intensity of peoples' preferences for the environment. The weakness of orthodox utilitarian assumptions in economics concerning the commensurability of all items entering into peoples' choices is discussed. The concept of commensurability is explored as is the problem of rational choice between incommensurate alternatives. While the frequent claim that the environment has some unique moral intrinsic value is unsustainable, its preservation often raises ethical and (...) other motivations that are not commensurate with the values that people place on ordinary marketable goods. Nevertheless, CV is also claimed to have some advantages and it is concluded that little progress will be made in this area until both sides in the debate recognise what is valid in their opponents' arguments. (shrink)

Four dogmas have shaped modern neoclassical economics. The first proposes that markets may fail to allocate resources efficiently, that is, to those willing to pay the most for them. The second asserts that choices, particularly within markets, reveal preferences. The third is the assumption that people always make the choices they expect will benefit them or enhance their welfare. The fourth dogma holds that perfectly competitive markets will allocate resources to their most beneficial uses. This is the doctrine of the (...) invisible hand. I argue that these dogmas of applied welfare economics should be abandoned. One consequence of doing so will be an increased interest in the institutional context of production. A second will be a turn toward empiricism. (shrink)