Abstract:

This article discusses the issue of scenario design based on experiences gained through a contingent valuation survey on Icelandic hydropower. The approach of tailored scenarios, which was developed during that survey, is described in detail. This concept suggests increasing the number of possible scenarios by referring to additional, but de facto unrealistic options. Its aim is to ease the survey design, particularly in cases in which a survey is meant to assess only selected effects instead of a holistic valuation of an entire project.

KEYWORDS: project appraisal, scenario design, status quo, tailored scenarios, contingent valuation, reference scenario