A Spatial Probit Modeling Approach to Account for Spatial Spillover Effects in Dichotomous Choice Contingent Valuation Surveys

2013 ◽  
Vol 45 (1) ◽  
pp. 53-63 ◽  
Author(s):  
John B. Loomis ◽  
Julie M. Mueller
Keyword(s):  
Contingent Valuation ◽  
Voting Behavior ◽  
Contingent Valuation Method ◽  
Probit Model ◽  
Spillover Effects ◽  
Dichotomous Choice ◽  
Spatially Correlated ◽  
Valuation Method ◽  
Spatial Probit ◽  
Unbiased Estimates

We present a demonstration of a Bayesian spatial probit model for a dichotomous choice contingent valuation method willingness-to-pay (WTP) questions. If voting behavior is spatially correlated, spatial interdependence exists within the data, and standard probit models will result in biased and inconsistent estimated nonbid coefficients. Adjusting sample WTP to population WTP requires unbiased estimates of the nonbid coefficients, and we find a $17 difference in population WTP per household in a standard vs. spatial model. We conclude that failure to correctly model spatial dependence can lead to differences in WTP estimates with potentially important policy ramifications.

The Price Insurance Demand of Rice Producers in the Vietnamese Mekong Delta

2020 ◽  
pp. 73-81
Author(s):  
Huynh Viet Khai
Keyword(s):  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Mekong Delta ◽  
Dichotomous Choice ◽  
Insurance Demand ◽  
Rice Farmers ◽  
Valuation Method ◽  
Minimum Price ◽  
Price Insurance ◽  
Shed Light

Using the dichotomous choice contingent valuation method, this chapter helps shed light on the potential for marker-based insurance schemes in Vietnam by empirically exploring the demand for minimum price insurance among rice households. The study showed that the majority of rice farmers accepted the guaranteed price of VND 4,500 per kg, and their accepted insurance fee was about 13% of the guaranteed price and 30% of the break-even price. Farmers growing rice under a monoculture system were less likely to pay for the proposed insurance service, while those with access to any formal credits were more likely to pay for it.

scholarly journals Farmers’ willingness to switch to ecological agriculture: A non-parametric analysis

2014 ◽  
Vol 60 (No. 6) ◽  
pp. 273-278
Author(s):  
C.H Yu ◽  
J.C. Yoo ◽  
B. Yao S
Keyword(s):  
Contingent Valuation ◽  
Organic Agriculture ◽  
Parametric Analysis ◽  
Contingent Valuation Method ◽  
Parametric Method ◽  
Reference Value ◽  
Dichotomous Choice ◽  
Valuation Method ◽  
The One ◽  
Non Parametric

The present study estimates the farmers’ willingness to switch to organic agriculture by using the one-and-one-half-bound dichotomous choice contingent valuation method. We survey 200 farmers in the Kwangsi-myeon, Yesan-gun (Chungnam, Korea) and ask them at what revenue level (based on a 40 kg bag of eco-friendly rice) they would be willing to switch from the conventional agricultural methods to organic agricultural methods. The Turnbull model, a non-parametric method, was then used to estimate the willingness to switch to organic agriculture. The presented results show that farmers would be willing to convert to organic agriculture if their revenues were increased to 107 369–109 230 KRW per bag from the reference value of 60 000 KRW.  

scholarly journals A Study on the Value of Preserving a Parasitic Volcanic Sieve as a Tourism Good for Sustainable Management: Using the Contingent Valuation Method

2020 ◽  
Vol 12 (7) ◽  
pp. 2825
Author(s):  
Won Seok Lee
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Causal Relationship ◽  
Sustainable Management ◽  
Contingent Valuation Method ◽  
Economic Value ◽  
Dichotomous Choice ◽  
Valuation Method ◽  
Good For

The purpose of this study is to estimate the economic value of Geomun Oreum (GO), a parasitic volcanic sieve, for sustainable management by using the dichotomous choice contingent valuation method. To address the exaggeration tendency of willingness to pay (WTP), the contingent valuation method’s (CVM’s) traditional threshold, respondents’ WTP answers were reconfirmed to screen only true responses for our analysis. In addition to estimating the economic value, the causal relationship between the tour guide’s quality of explanation and the respondents’ payment intention is examined in the study. The results reveal that the estimated preservation value of GO is 35,881 KRW (33.28 USD), and the quality of the tour guide’s narrative is statistically related to the respondents’ payment intention.

scholarly journals The Provision Point Mechanism and Scenario Rejection in Contingent Valuation

2009 ◽  
Vol 38 (2) ◽  
pp. 271-280 ◽  
Author(s):  
Peter A. Groothuis ◽  
John C. Whitehead
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Free Riding ◽  
Dichotomous Choice ◽  
Economic Experiments ◽  
Valuation Method ◽  
Provision Point

The provision point mechanism mitigates free-riding behavior in economic experiments. In two contingent valuation method surveys, we implement the provision point design. We ask respondents for their perceptions about the success of the provision point mechanism. We find that respondents who believe that the provision point would not be met are more likely to saynoto a contingent valuation dichotomous choice question. The scenario rejection that arises may result in biased willingness-to-pay estimates.

scholarly journals Determinantion of visitors’ willingness to pay to enter Karagol Natural Park of Ankara, Turkey

2018 ◽  
Vol 48 (7) ◽  
Author(s):  
Coskun Serefoglu
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Economic Value ◽  
Probit Model ◽  
Valuation Method ◽  
Natural Park ◽  
Working Status

ABSTRACT: The objectives of this study were to assess visitors’ attitudes, if visitors would be willing to pay to enter Lake Karagol, and what factors affect their decision to pay. The contingent valuation method was used to estimate the economic value of the lake by assessing willingness to pay (WTP). Double dichotomous questions were used in the survey. Respondents were first asked whether or not they would be willing to pay the starting bid. They could either answer in the affirmative (that is, accepted bid) or in the negative (that is, reject the starting bid). The average WTP for an entrance fee was found to be about USD 0.22 for all observations when zero bids were included, and about USD 4.40 when zero bids were excluded. Result of the probit model showed that respondents with a higher income, respondents who were young, and the working status of the respondents had significant impacts on the probability of the WTP.

Influence of Initial Bid Number and Sample Size on the Double-Bounded Dichotomous Choice Contingent Valuation Method

2016 ◽  
Vol 36 (3) ◽  
Author(s):  
敖长林 AO Changlin ◽  
周领 ZHOU Ling ◽  
焦扬 JIAO Yang ◽  
王世雪 WANG Shixue
Keyword(s):  
Contingent Valuation ◽  
Sample Size ◽  
Contingent Valuation Method ◽  
Dichotomous Choice ◽  
Valuation Method
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