Budget-Constraint, Temporal, and Question-Ordering Effects in Contingent Valuation Studies

1997 ◽  
Vol 29 (7) ◽  
pp. 1215-1228 ◽  
Author(s):  
I J Bateman ◽  
I H Langford
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Budget Constraint ◽  
Design Effects ◽  
Ordering Effects ◽  
Split Sample ◽  
Design Options ◽  
The Impact ◽  
Temporal Extent

A split-sample approach is employed to test three potential design options for contingent valuation studies. A survey of unpriced woodland recreation is undertaken to test: (a) the impact of introducing budget-constraint questions; (b) the effect of varying temporal extent from willingness to pay (WTP) per annum to WTP per visit; and (c) the consequences of varying the order in which such WTP questions are presented to respondents. Some significant design effects are detected. Alternative explanations of such findings are considered and implications discussed.

WILLINGNESS TO PAY FOR AIR QUALITY IMPROVEMENTS FROM USING ELECTRIC JEEPNEYS IN METRO MANILA

2015 ◽  
Vol 60 (04) ◽  
pp. 1550073 ◽  
Author(s):  
JAMIL PAOLO S. FRANCISCO
Keyword(s):  
Air Quality ◽  
Willingness To Pay ◽  
Contingent Valuation ◽  
Public Transportation ◽  
Income Elasticity ◽  
Contingent Valuation Method ◽  
Quality Improvements ◽  
Valuation Method ◽  
Metro Manila ◽  
The Impact

This study used the contingent valuation method (CVM) to measure the benefits of improved air quality in Metro Manila through the adoption of cleaner public transportation. A single-bound dichotomous choice contingent valuation approach using the referendum format was used to estimate the willingness to pay (WTP) from a survey of 1,000 households. The study arrived at WTP estimates for the proposed program ranging from USD3.85 to USD5.77 per month. Income elasticity of WTP was estimated at 0.49. The study also investigated the impact of using secret ballots for eliciting WTP responses to minimize "yea-saying" behavior and reduce social desirability bias.

scholarly journals Going along with the crowd? The importance of group effects for environmental deliberative monetary valuation

2017 ◽  
Vol 36 (70) ◽  
pp. 75-94 ◽  
Author(s):  
Andrés Mauricio Vargas ◽  
David Díaz
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Stated Preference ◽  
Group Discussion ◽  
Stated Preference Methods ◽  
Monetary Valuation ◽  
Split Sample ◽  
Contingent Valuation Survey ◽  
Independent Preferences ◽  
Group Effects

Deliberation is expected to enhance the validity and/or the democratic status of stated preference methods. Those objectives are challenged by the potential presence of group effects. Deference to the information publicly announced by others and social pressures to conformity hinder people's ability to express reflective and independent preferences. Through a split sample contingent valuation survey, we tested whether participating in group discussion affects willingness to pay (WTP). We also test for the presence of group effects. Participants in group discussion stated a higher WTP, and we did not find evidence of group effects. These results are favorable to the deliberative project.

Getting the toll story about willingness-to-pay tolls

2018 ◽  
Vol 30 (2) ◽  
pp. 156-174
Author(s):  
Juita-Elena (Wie) Yusuf ◽  
Lenahan O’Connell ◽  
David Chapman ◽  
Meagan M. Jordan ◽  
Khairul Azfi Anuar
Keyword(s):  
Theory Of Planned Behavior ◽  
Willingness To Pay ◽  
Contingent Valuation ◽  
Planned Behavior ◽  
Price Information ◽  
Two Stage ◽  
Content Type ◽  
Ability To Pay ◽  
The Impact

Purpose The purpose of this paper is to examine drivers’ willingness-to-pay (WTP) tolls using data from a survey of drivers in the Hampton Roads region of Southeastern Virginia. The theory of planned behavior is applied to understand the different factors contributing to WTP tolls. The study measures different dimensions of WTP, offers a two-stage approach that aligns correlates of WTP tolls in logical sequence, and assesses the role of price information (toll rates) as an anchor heuristic in WTP. Design/methodology/approach Three WTP measures are elicited via contingent valuation method using three survey questions that incorporate different price information. The study tests the role of price information as an anchor heuristic. WTP is analyzed using a two-stage decision process. Drivers first decide whether, in-principle, to support tolls, followed by the amount they are willing to pay (maximum and peak amounts). Three regression models are run to test the impact of ability to pay on amount WTP, impact of in-principle WTP on maximum WTP, and impact of maximum WTP on peak WTP given an anchor toll rate. Findings Attitudes supportive of tolls and the ability to pay are predictors of in-principle WTP, while in-principle WTP predicts amount (maximum and peak) WTP. Price information, as an anchor heuristic, reduces variability in amount WTP and conditions the amounts WTP. Originality/value The value and originality of this study lie in the application of the theory of planned behavior to study WTP tolls, the use of contingent valuation, and the effect of anchor heuristics.

Hoppiness Is Happiness? Under-fertilized Hop Treatments and Consumers’ Willingness to Pay for Beer

2018 ◽  
Vol 13 (2) ◽  
pp. 160-181 ◽  
Author(s):  
Gnel Gabrielyan ◽  
Thomas L. Marsh ◽  
Jill J. McCluskey ◽  
Carolyn F. Ross
Keyword(s):  
Willingness To Pay ◽  
Field Experiment ◽  
Contingent Valuation ◽  
Growing Season ◽  
Sociodemographic Characteristics ◽  
Processing Conditions ◽  
Contingent Valuation Survey ◽  
The Impact ◽  
Craft Beers ◽  
Jel Classifications

AbstractThe market structure and recipes for beer has been rapidly changing with craft beers attracting more consumers. Perceived hops quality (hoppiness) is one of the main attributes that microbrewers alter to differentiate their products to satisfy consumers’ changing tastes and preferences. We hypothesize that, in addition to manipulating beer-processing conditions, the conditions under which the hops are grown may also influence the final sensory properties of the beer. Using hops from a field experiment coupled with sensory attributes and sociodemographic characteristics from a contingent valuation survey, we analyzed the impact of under-fertilized hop treatments during the growing season on consumers’ willingness to pay for beer. The results indicate that uninformed consumers in a blind tasting could identify the differences in beer made from hops across the fertilization treatments and, thus, implying that all else equal sufficient fertilizer is required to achieve satisfactory hoppiness for which consumers are willing to pay. (JEL Classifications: C91, D12, L66, Q11)

scholarly journals The Impact of the COVID-19 Pandemic on Tourists’ WTP: Using the Contingent Valuation Method

2021 ◽  
Vol 18 (16) ◽  
pp. 8605
Author(s):  
Chang-Young Jeon ◽  
Hee-Won Yang
Keyword(s):  
Infectious Disease ◽  
Logistic Regression ◽  
Willingness To Pay ◽  
Contingent Valuation ◽  
Perceived Risk ◽  
Contingent Valuation Method ◽  
Dichotomous Choice ◽  
Factors Affecting ◽  
Valuation Method ◽  
The Impact

This study estimated tourists’ willingness to pay (WTP) for tourist sites or facilities in the prolonged COVID-19 pandemic by applying the dichotomous choice-contingent valuation method to two different tourism destination types. A survey was conducted among domestic tourists in South Korea who had visited destinations within the last six months. We conducted a logistic regression with 1283 effective samples. The results showed differences in tourists’ WTP, depending on type, and the factors affecting WTP differed. Tourists with higher tourism attitude and knowledge of tourism risk exhibited a higher WTP. Tourists with higher perceived risk of infectious disease exhibited less WTP.

scholarly journals Do millennials value travel time differently because of productive multitasking? A revealed-preference study of Northern California commuters

2021 ◽  
Author(s):  
Aliaksandr Malokin ◽  
Giovanni Circella ◽  
Patricia L. Mokhtarian
Keyword(s):  
Older Adults ◽  
Young Adults ◽  
Willingness To Pay ◽  
Travel Time ◽  
Choice Model ◽  
Mode Choice ◽  
Revealed Preference ◽  
Northern California ◽  
Factors Affecting ◽  
The Impact

AbstractMillennials, the demographic cohort born in the last two decades of the twentieth century, are reported to adopt information and communication technologies (ICTs) in their everyday lives, including travel, to a greater extent than older generations. As ICT-driven travel-based multitasking influences travelers’ experience and satisfaction in various ways, millennials are expected to be affected at a greater scale. Still, to our knowledge, no previous studies have specifically focused on the impact of travel multitasking on travel behavior and the value of travel time (VOTT) of young adults. To address this gap, we use an original dataset collected among Northern California commuters (N = 2216) to analyze the magnitude and significance of individual and household-level factors affecting commute mode choice. We estimate a revealed-preference mode choice model and investigate the differences between millennials and older adults in the sample. Additionally, we conduct a sensitivity analysis to explore how incorporation of explanatory factors such as attitudes and propensity to multitask while traveling in mode choice models affects coefficient estimates, VOTT, and willingness to pay to use a laptop on the commute. Compared to non-millennials, the mode choice of millennials is found to be less affected by socio-economic characteristics and more strongly influenced by the activities performed while traveling. Young adults are found to have lower VOTT than older adults for both in-vehicle (15.0% less) and out-of-vehicle travel time (15.7% less), and higher willingness to pay (in time or money) to use a laptop, even after controlling for demographic traits, personal attitudes, and the propensity to multitask. This study contributes to better understanding the commuting behavior of millennials, and the factors affecting it, a topic of interest to transportation researchers, planners, and practitioners.

scholarly journals The Impact of Environmental Sustainability Labels on Willingness-to-Pay for Foods: A Systematic Review and Meta-Analysis of Discrete Choice Experiments

Nutrients ◽  
2021 ◽  
Vol 13 (8) ◽  
pp. 2677
Author(s):  
Anastasios Bastounis ◽  
John Buckell ◽  
Jamie Hartmann-Boyce ◽  
Brian Cook ◽  
Sarah King ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Discrete Choice ◽  
Environmental Sustainability ◽  
Purchasing Power Parity ◽  
Meta Analysis ◽  
Choice Experiments ◽  
Discrete Choice Experiments ◽  
Environmental Damage ◽  
Environmentally Sustainable ◽  
The Impact

Food production is a major contributor to environmental damage. More environmentally sustainable foods could incur higher costs for consumers. In this review, we explore whether consumers are willing to pay (WTP) more for foods with environmental sustainability labels (‘ecolabels’). Six electronic databases were searched for experiments on consumers’ willingness to pay for ecolabelled food. Monetary values were converted to Purchasing Power Parity dollars and adjusted for country-specific inflation. Studies were meta-analysed and effect sizes with confidence intervals were calculated for the whole sample and for pre-specified subgroups defined as meat-dairy, seafood, and fruits-vegetables-nuts. Meta-regressions tested the role of label attributes and demographic characteristics on participants’ WTP. Forty-three discrete choice experiments (DCEs) with 41,777 participants were eligible for inclusion. Thirty-five DCEs (n = 35,725) had usable data for the meta-analysis. Participants were willing to pay a premium of 3.79 PPP$/kg (95%CI 2.7, 4.89, p ≤ 0.001) for ecolabelled foods. WTP was higher for organic labels compared to other labels. Women and people with lower levels of education expressed higher WTP. Ecolabels may increase consumers’ willingness to pay more for environmentally sustainable products and could be part of a strategy to encourage a transition to more sustainable diets.

scholarly journals Consumer willingness-to-pay for restaurant surcharges to reduce carbon emissions: default and information effects

2021 ◽  
pp. 1-29
Author(s):  
Dede Long ◽  
Grant H. West ◽  
Rodolfo M. Nayga
Keyword(s):  
Climate Change ◽  
Willingness To Pay ◽  
Contingent Valuation ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Dichotomous Choice ◽  
Carbon Reduction ◽  
The Mean ◽  
Agriculture And Food

Abstract The agriculture and food sectors contribute significantly to greenhouse gas emissions. About 15 percent of food-related carbon emissions are channeled through restaurants. Using a contingent valuation (CV) method with double-bounded dichotomous choice (DBDC) questions, this article investigates U.S. consumers’ willingness to pay (WTP) for an optional restaurant surcharge in support of carbon emission reduction programs. The mean estimated WTP for a surcharge is 6.05 percent of an average restaurant check, while the median WTP is 3.64 percent. Our results show that individuals have a higher WTP when the surcharge is automatically added to restaurant checks. We also find that an information nudge—a short climate change script—significantly increases WTP. Additionally, our results demonstrate that there is heterogeneity in treatment effects across consumers’ age, environmental awareness, and economic views. Our findings suggest that a surcharge program could transfer a meaningful amount of the agricultural carbon reduction burden to consumers that farmers currently shoulder.

Sign in / Sign up

Export Citation Format

Share Document