Bidding games for valuation of aesthetic environmental improvements

An empirical case study of the benefits of abatement of aesthetic environmental damage associated with the Four Corners power plant and Navajo mine using the bidding game technique is presented. Bidding games were carefully designed to avoid the potential problems inherent in that technique. The results indicate the existence of substantial benefits from abatement of this aesthetic environmental damage. Aggregate bid curves, marginal bid curves, and estimates of the income elasticity of bid are presented. The effectiveness of the bidding game technique is discussed.