The averting expenditures method
A) uses spending changes on goods that act as substitutes for environmental quality
B) defines personal environmental quality as the relevant market
C) has the disadvantage of jointness of production, which biases the benefit estimate
D) all of the above

Question

Quizplus · Accepted Answer

The averting expenditures method uses spending changes on goods that act as substitutes for environmental quality, defines personal environmental quality as the relevant market, and has the disadvantage of jointness of production, which biases the benefit estimate. Therefore, all of the above options are correct.

The Averting Expenditures Method