TNS Canadian Facts - Contingent Valuation of Environmental Effects From Dry Cleaning

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Contingent Valuation of Environmental Effects From Dry Cleaning

Environment Canada

Perchloroethylene (perc) is a chemical widely used in dry cleaning. Emissions of perc have been linked to damage to the environment.

We developed, pre-tested, administered, and analyzed a survey to determine:

The total dry cleaning volumes in Canada.
The elasticity (price sensitivity) of demand for dry cleaning services.
The benefit perceived by Canadians from the introduction of controls on perchloroethylene emissions.

The benefit estimation used the contingent valuation method (CVM) to estimate individuals "willingness to pay" for the environmental benefit. Our study was designed to overcome problems with the CVM approach cited in the economics literature.

Our survey covered over 1,700 respondents. Results of the survey were used to determine the cost-effectiveness of regulations to limit the emissions of perc to the environment.