In a static setting, willingness to pay for an environmental improvement is equal to compensating variation. However, in a dynamic setting characterized by uncertainty, irreversibility, and the potential for learning, willingness to pay may also contain an option value. In this paper, we...

In a static setting, willingness to pay for an environmental improvement is equal to compensating variation. However, in a dynamic setting characterized by uncertainty, irreversibility, and the potential for learning, willingness to pay may also contain an option value. In this paper, we...

In a static setting, willingness to pay for an environmental improvement is equal to the compensating variation. However, in a dynamic setting willingness to pay may also contain a commitment cost. In this paper we incorporate the dynamic nature of the value formation process into a stated...