This is the recommended
technique for formal economic analyses of government
programs or projects (OMB Circular A-94) and can be used to
determine whether a management action promotes an efficient use
of society’s scarce resources. In the case of resource uses which do
not have a market price that reflects their value to society, such as
recreational wildlife viewing opportunities, economic benefits can
be estimated through nonmarket valuation methods. These
methods capture the public’s willingness-to-pay, the same measure
used to establish market clearing prices in competitive markets for
private goods. Willingness-to-pay in excess of current costs, i.e.
consumer surplus, is the accepted benefit measure used in benefitcost
analyses performed by federal agencies.