Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias |
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Authors: | James A Brox Ramesh C Kumar and Kenneth R Stollery |
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Institution: | James Brox is professor and chair,;Ramesh Kumar is associate professor, and;Kenneth Stollery is professor of economics at the University of Waterloo, Canada. |
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Abstract: | This article deals with the problem of item nonresponse in contingent valuation surveys using a payment-card method, by applying a grouped-data sample-selection estimation technique that is capable of imputing the missing values conditional upon a respondent's decision to answer a willingness-to-pay question. The advantage of the technique lies in its ability to utilize all of the information in the sample, permitting a more efficient estimation in the presence of item nonresponse bias. The major determinants of willingness to pay appear to be household income, number of children, education, perception of existing water quality, and identification with environmental issues. |
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Keywords: | item nonresponse water quality willingness to pay |
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