Do protest responses to a contingent valuation question and a choice experiment differ?

It is suggested that the number of protest responses in stated preference surveys depends, inter alia, on the valuation method used. Choice Experiments (CE) are said to generate a lower number of protest responses than Contingent Valuation (CV). However, no comparison of both methods with respect to protest responses has been conducted to date. We used both CE and CV in a survey on forest biodiversity in two German regions. Protest beliefs were measured for all respondents irrespective of whether they were willing to pay or not. The results show no clear pattern of differences between CE and CV regarding protest beliefs and protest responses. Using an attitude scale based on respondents’ protest beliefs, we see a significant negative effect of this attitude on willingness to pay in both methods. However, in one of the two study regions, the effect is weaker in CE than in CV.      

Valuing climate protection through willingness to pay for biomass ethanol

This study uses a multi-part, split-sample contingent valuation method (CVM) and fair share (FS) survey to better understand the public's valuation of mitigating global climate change through its willingness to pay for biomass or “cellulosic” ethanol. In addition to a basic CVM question, a related scenario was developed that asked half of the survey respondents to state their fair share cost to lessen a potential food shortage in the next decade, also through the expanded use of cellulosic ethanol. Three alternative biomass feedstocks were assessed: farming residues, forestry residues and paper mill wastes, and municipal solid wastes. Overall a slightly larger proportion of respondents were WTP extra for cellulosic ethanol in the basic CVM scenario than in the FS scenario, though no significant differences were found in the WTP for the different feedstocks. Bid curve lognormal regression results for the two models were similar, supporting the idea that asking a FS rather than a conventional WTP question may be justifiable in some circumstances, such as in cases of a national emergency.     

Attribute Causality in Environmental Choice Modelling

When selecting attributes in environmentalChoice Modelling studies, preference should begiven to those attributes that aredemand-relevant, policy-relevant, andmeasurable. The use of these criteria willoften result in a short list of environmentalattributes of which some are causally related. The inclusion of attributes that have a``cause-effect' relationship may stimulate somerespondents to seek to understand the causalrelations among attributes in order to assigngreater meaning to the alternatives, andpotentially, simplify the decision makingprocess. This may have implications for theweights they assign to each of the attributeswhen identifying the preferred alternatives,and subsequently for the implicit prices and/orwelfare estimates. A test of the impact ofincluding an attribute that causesimpacts on ecosystem health as well as anattribute relating to ecosystem health effectson parameter estimates, implicitprices and welfare estimates is conducted. Twoquestionnaires are developed, one with the`causal' attribute included and one without. Acomparison of results indicates that when the`causal' attribute is included in the vector ofchoice attributes, the implicit value of asingle endangered species falls by 34 per centwhilst no significant difference is detected inthe parameter estimates. Importantly, however,estimates of compensating surplus for a givenpolicy package do not differsignificantly across the two treatments. Thisimplies that to the extent that the inclusionof a `causal' attribute reduces the implicitprices for one or more of the `effect'attributes, the associated loss in utility isapproximately offset by the utility nowassociated with the new attribute.     

Complements, Substitutes, Budget Constraints and Valuation

This study employs a multi-program contingent valuation (CVM) design tosimultaneously assess the value of three ecosystem conservation programsin Alberta, Canada. The design is different from most other CVM designsand has several different features including the natural incorporation ofdirect reminders of substitute/complementary programs and budgetconstraints. In contrast to the findings of other studies, two of the environmentalprograms appear to be complements and other combinations of the programssuggest an absence of substitution effects. The multi-program model ismore informative and robust in terms of theoretical validity and expectedrelationships with demographic and recreational characteristics of therespondents.     

Ordering effects in contingent valuation surveys

This paper focuses on ordering effects in CVM surveys; how the expressed value of a particular good valued in a sequence of several goods depends on where in the sequence the good is valued. We use data from a Norwegian CVM survey focusing on WTP for a 50% reduction in air pollution from car traffic to test for the existence of ordering effects and to apply a test for internal consistency. We found considerable and significant ordering effects in our data, but were not able to reject the hypothesis of internal consistency. Based on our survey, we argue that ordering effects may be a result of rational choice. These effects are problematic if a sequential valuation procedure is applied to a simultaneous problem, and/or the respondents are given imperfect information about the decision problem.     

Economic Valuation of Environmental Damages due to the Prestige Oil Spill in Spain

This paper presents a parametric and non-parametric analysis of data from a contingent valuation study (CVM) conducted to estimate environmental use and passive use losses due to the Prestige oil spill. This is the first CVM study conducted in Europe after a large oil spill. The CVM survey was implemented using in person interviews. Mean willingness to pay (WTP) values were computed with both, a parametric and non-parametric approach. Parametric WTP estimation indicates that respondents in the sample are willing to pay about 40.51 € per household to avoid a similar future oil spill in Spain. This implies that on average, the Spanish society places a value of the environmental losses caused by the Prestige oil spill around 574 € million. Non-parametric estimates are slightly higher at 58.08 € per household. WTP results are similar to those obtained in the Exxon Valdez study.     

The Effects of Changing Cost Vectors on Choices and Scale Heterogeneity

Choice Experiments (CE) are widely used to estimate the values of changes in non-market goods and services. A cost attribute is typically included in a CE questionnaire to enable the estimation of monetary values for changes in the non-market attributes presented. Notwithstanding the central importance of the cost attribute, relatively little research has been undertaken on the impacts of varying cost attribute levels on value estimates, or on individual heterogeneity. In this paper, I present results from mixed logit and generalised mixed logit models that account for unobserved idiosyncratic preference and scale heterogeneity. Respondents are found to anchor their choices on the relative cost levels presented in the survey with results suggesting that people are more sensitive to relative rather than absolute cost vectors. However, the higher cost levels do not lead to significantly higher value estimates, partly because of observed preference heterogeneity towards the environmental attributes. An important observation is that scale heterogeneity is important: accounting for scale— as well as preference—heterogeneity in the generalised mixed logit model leads to significantly improved model fit. The results indicate significant unobserved error variance across respondents, unrelated to whether a high or low cost vector is used.     

Preferences with and without prices - does the price attribute affect behavior in stated preference surveys?

The experimental as well as the non-market valuation literature include several examples of how an introduced price can affect behavior in otherwise not expected ways. It has become standard to include a price vector as an attribute in choice experiments, something that enables us to estimate a marginal willingness to pay for other attributes. We test the impact on preferences by an inclusion of a price in a choice experiment. Preferences are affected, as might be expected. However, also the relative ranking of individual attributes is affected.      

Preference Structures, Property Rights, and Paired Comparisons

The method of paired comparisons was used to determine the structure of survey participants' value expressions for Australian native forests. The same participants were also surveyed using the contingent valuation method (CVM). Data from the paired comparisons were used to construct preference maps which enabled identification of participants whose value expressions were structurally incompatible with economic welfare theory – in particular, those participants who expressed their values according to lexicographic preferences. For some of these participants, CVM results did not provide appropriate measures of WTP. The surveys also demonstrated the importance of allowing participants' own views on property rights to dictate the valuation context offered.     

Do Colored Photographs Affect Willingness to Pay Responses for Endangered Species Conservation?

The NOAA panel suggested that use of photographs should be pre-tested to explore their effects on subjects (Arrow et al. 1993). For this paper, a modification to the test suggested by the NOAA Panel was made. We tested whether use of colored, as opposed to black and white (B & W), photographs influence respondents’ valuation of the environmental commodity in question. The context of the test is a CVM study valuing the benefits from protecting the national bird. This was performed using two drop-off surveys that were identical except for the color of the photographs incorporated in the survey instrument. The dichotomous choice logit equations were statistically different between the two treatments of the questionnaire, indicating the significant effect of colored photographs on the respondents’ WTP. The findings support the NOAA Panel recommendation of careful pre-testing and scrutiny of the photographs integrated in the questionnaire since ‘packaging’ of the environmental good (i.e., endangered species protection) matters in valuing benefits associated with it. Since colored photographs are found to be value-enhancing, to simply use B & W photos as an attempt to reduce cost associated with implementing the contingent valuation (CV) survey, especially when limited research money is involved, would result to lower the estimated value of the environmental good.     

Using eye-tracking to model attribute non-attendance in choice experiments

We investigate revealed attribute attendance in discrete choice experiments using eye-tracking. A simple theoretical framework is proposed in which choices are a function of visual attention. Consistent with the existing literature, the assumption that participants use all the available information to make their decisions does not hold. The results also illustrate that model fit and predictive power are greatly increased by using visual attendance measures as regressors. The use of eye-tracking technology has value for measuring revealed attention and to benchmark with existing choice models.     

The internalization of externalities in the production of electricity: Willingness to pay for the attributes of a policy for renewable energy

This paper investigates the willingness to pay of a sample of residents of Bath, England, for a hypothetical program that promotes the production of renewable energy. Using choice experiments, we assess the preferences of respondents for a policy for the promotion of renewable energy that: (i) contributes to the internalization of the external costs caused by fossil fuel technologies; (ii) affects the short-term security of energy supply; (iii) has an impact on the employment in the energy sector; and (iv) leads to an increase in the electricity bill. Responses to the choice questions show that our respondents are in favour of a policy for renewable energy and that they attach a high value to a policy that brings private and public benefits in terms of climate change and energy security benefits. Our results therefore suggest that consumers are willing to pay a higher price for electricity in order to internalize the external costs in terms of energy security, climate change and air pollution caused by the production of electricity.     

The Effect of Consumers’ Real-World Choice Sets on Inferences from Stated Preference Surveys

For stated preference (SP) studies, we develop a model that assesses the influence of choice set misspecification arising from the omission of perceived substitutes among real-world alternatives in the same class of goods. This problem is most likely to be present when individuals are allowed to select a “no purchase” option instead of being forced to choose from an explicit set of SP alternatives with hypothetical attribute levels. A convenient feature of our model is that researchers do not need to know exactly which omitted real substitute the individual most prefers, only the set of real substitutes that exists. In our empirical illustration, a comparison of rival models suggests researchers who overlook the presence of perceived real alternatives related to an SP experiment can end up with noticeably biased welfare estimates. Our more-general model suggests that it may be prudent for future SP researchers to anticipate, then test and possibly correct for, distortions in utility parameter estimates that result from this problem.      

意愿调查法在房屋拆迁补偿价格评估中的运用——以武汉市为例

房地产拆迁是近年来最敏感的社会问题之一,评估结果是否准确直接影响着被拆迁人、拆迁人、政府三方的切身利益,进而影响拆迁工作的进程。针对拆迁补偿价格评估现存难题,引入意愿调查法(CVM),探讨了其在房屋拆迁补偿价格评估中的优势、全面设计了调查程序、提出偏差解决方法,并设计调查问卷以武汉市为实证研究,得出受偿意愿金额(WTA);最后对意愿调查法的实际应用提出三点建议。     

Meta-Functional Benefit Transfer for Wetland Valuation: Making the Most of Small Samples

This study applies functional Benefit Transfer via Meta-Regression Modeling to derive valuation estimates for wetlands in an actual policy setting of proposed groundwater transfers in Eastern Nevada. We illustrate how Bayesian estimation techniques can be used to overcome small sample problems notoriously present in Meta-functional Benefit Transfer. The highlights of our methodology are: (i) The hierarchical modeling of heteroskedasticity; (ii) The ability to incorporate additional information via refined priors; and (ii) The derivation of measures of model performance with the corresponding option of model-averaged Benefit Transfer predictions. Our results indicate that economic losses associated with the disappearance of these wetlands can be substantial and that primary valuation studies are warranted.      

Temporal stability of preferences and willingness to pay for natural areas in choice experiments: A test–retest

The main objective of this paper is to test the temporal stability of stated preferences and willingness to pay (WTP) values from a Choice Experiment (CE) in a test–retest. The same group of participants was asked the same choice tasks in an internet-based CE, conducted twice with a time interval of one year without interviewer interference. We examine choice consistency at individual choice task level and transferability of the underlying indirect utility function and associated WTP values. The results show that choices are consistent in 57 percent of the choice occasions. Comparison of the choice models over time shows that the estimated preference and scale parameters are significantly different, suggesting that choice behaviour changed between the two surveys. Differences between marginal WTP estimates for individual choice attributes are statistically significant only at the 10 percent level. However, we show that this can result in significantly different WTP values for policy scenarios. The instability of estimated mean WTP values for different policy scenarios asks for caution when including WTP values in cost-benefit analysis.     

Internal validity in discrete choice experiments: varying the position of the price attribute

This article presents an analysis of internal validity in discrete choice experiments. Prior studies have analysed the importance of the order of attributes within a multiple choice context, but few have specifically analysed the importance of the location of the price attribute. The internal validity was analysed while considering variations in the position of the price attribute in the choice cards. Results show differences in the estimates of willingness to pay according to the price-location version used: at the beginning, in the middle or at the end of the choice card.     

The total economic value of threatened, endangered and rare species: An updated meta-analysis

This paper updates a 1996 meta-analysis of studies using the Contingent Valuation Method (CVM) to value threatened, endangered and rare species published in this journal by Loomis and White. A variable for studies conducted in or after 1995 was added to the model to test if new studies are systematically different from old studies and identify which explanatory variables influencing willingness-to-pay (WTP) for these species have changed over time. Generally newer studies yielded higher WTP. Variables such as the change in the size of the species population, payment frequency, survey mode, response rate, type of respondent, type of species, and a new variable for whether a species is a ‘charismatic megafauna’ or not, whether the species has use and nonuse value versus nonuse value only and year of the study, were found to significantly influence WTP. This model is used in a benefit transfer example and a comparison of original study estimates and model estimates is made to compare its accuracy. The average within sample benefit transfer error was 34-45%.     

When the public good conflicts with an apparent preference for unsustainable behaviour

The example of peatlands is used to demonstrate the challenges facing the sustainable management of natural resources in situations where the fragility of an environment is not appreciated by all stakeholders. We reveal, through the use of a survey applying both contingent valuation and discrete choice experiments, that many local people and others within the wider population, value peatlands as an example of a cultural landscape. However, there is a reluctance to stop extracting peat for domestic fuel even though the activity is undermining the ecological sustainability of this same landscape. This resistance is shown to arise because the cutting of peat is a well-established land use and a cessation of peat cutting is perceived to require the abandonment of traditional rights. In addition, the activity is widely regarded as more benign than industrial scale cutting for energy. The value attached to the landscape is an opportunity for conservation policy, but for this to succeed there must be an acknowledgement of local interests.