Valuing changes in utility for non-market outcomes: Experiences alongside preferences

The current practice in economics is to allocate resources on the basis of our preferences as they are expressed in real or hypothetical markets. Our preferences suffer from a number of problems, however, especially when we value non-market goods, such as the environment or health. An alternative way to value non-market goods is through our experiences, or subjective well-being (SWB). SWB is based on our subjective reports of we think and feel about life. This thesis shows how the values of non-market goods may differ according to whether preferences or SWB are used. There are a number of problems with using SWB as an alternative method of valuation but, overall, this thesis concludes that SWB provides a promising way of valuing non-market goods