Direct market valuation

RICS Insight Paper ‘Value of natural capital - the need for chartered surveyors’ published by the Royal Institution of Chartered Surveyors in 2017 suggests that direct market valuation is a revealed preference method that draws on the revealed preferences of stakeholders.

Direct market valuation approaches: ‘can be based on transactional data, production costs or replacement costs. This can be extended to the cost of avoiding damage to an ecosystem, or the cost of replacing a damaged or destroyed service. This extends to production function based approaches where, for example, the ‘value’ of an ecosystem service can be gauged by the value of the final (marketable) product to which it gives rise (for example water for consumption).’

Other revealed preference methods include:

• Hedonic pricing.
• Travel cost methods.
• Avertive expenditure.
• Replacement cost.

Approaches other than the revealed preference method include:

• Stated preference valuation.
• Value transfer/benefit transfer.

[edit] Related articles on Designing Buildings Wiki

• Avertive expenditure.
• Environmental value concepts.
• Hedonic pricing.
• Natural capital.
• Replacement cost.
• RICS.
• Stated preference valuation.
• Travel cost methods.
• Valuation.
• Value added.
• Value.