The concept is most commonly used in public policy assessment to justify continuing investment in parks, wildlife refuges and land conservation, as well as rail transportation facilities and services.
It has been applied for establishing the value of preserving wildlife habitats,[2] wilderness areas,[3] and water recreation resources.
[11] The term "option value" and its theoretical underpinnings as a non-user benefit were initially developed in 1964 by Burton Weisbrod.
Some economists further developed its distinction from consumer surplus and role as an uncertainty risk aversion premium,[13][14] leading to the suggestion that a concept of "option price" may be more appropriate.
However, the original term "option value" is still commonly used in applied studies (as apparent in works cited in the preceding application section; see also[20]).