Do Focus Groups Contribute Anything to the Contingent Valuation Process?

The Contingent Valuation Method (CVM) is a well-established, although not uncontroversial, valuation technique within environmental economics. The CVM elicits an individual's willingness to pay (willingness to accept compensation) for improvements (reductions) in the use and non-use "services" flowing from environmental and other public goods. The qualitative aspects of the CVM are largely ignored by (environmental) economists. This paper aims to instigate a discussion on: (1) the usefulness of qualitative data to the contingent valuation process in general; and (2) the use and applicability of the focus group method to economic psychology in particular. The authors consider the range and uses of focus groups within the CVM and highlight problems with their analysis that have, to date, largely been ignored. A potential solution to circumvent the problem of non-independence of group data is suggested. While there are several distinct and worthwhile uses for qualitative data, focus groups should not automatically be taken as the only or best method to produce these insights even though they are the major one considered in this article.