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.