scholarly journals Estimating the Preservation Value of World Heritage Site Using Contingent Valuation Method: The Case of the Li River, China

2019 ◽  
Vol 11 (4) ◽  
pp. 1100 ◽  
Author(s):  
Meilan Jin ◽  
Yuxian Juan ◽  
Youngjoon Choi ◽  
Choong-Ki Lee
Keyword(s):  
Contingent Valuation ◽  
Local Economic Development ◽  
Contingent Valuation Method ◽  
World Heritage ◽  
Hypothetical Bias ◽  
World Heritage Site ◽  
Two Stage ◽  
World Heritage Sites ◽  
Valuation Method ◽  
Preservation Value

World Heritage Sites (WHSs) play an important role in sustaining community identity and enhancing local economic development through tourism. Although the Li River was designated as a WHS in 2014, severe damage to its ecosystem and environmental problems have been reported in recent years. Thus, the purpose of this study is to estimate residents’ willingness to pay (WTP) for the preservation of the Li River using a contingent valuation method. Moreover, a two-stage approach using hypothetical and real setting scenarios was utilized to reduce a hypothetical bias and overvaluation. Logit models were used to estimate the preservation value and compare factors influencing WTP between the hypothetical and real scenarios. The results of this study support the usefulness of a two-stage approach to avoid hypothetical bias and estimate a realistic preservation value. In the real setting scenario, WTP was 144.66–163.90 Yuan (USD 20.83–23.60) per capita per year, and the aggregate value was 721–818 million Yuan (USD 104–118 million) depending on mean WTP and truncated WTP. The study findings provide useful implication to support government’s fund and sustainable efforts to preserve the Li River.

scholarly journals Estimating the Preservation Value of Wuyishan National Park from the Perspective of Bounded Rational Decision Making

2021 ◽  
Vol 13 (13) ◽  
pp. 6983
Author(s):  
Chang Liu ◽  
Mingshui Lin ◽  
Xinhua Qi ◽  
Wenjuan Zheng
Keyword(s):  
Decision Making ◽  
Willingness To Pay ◽  
Contingent Valuation ◽  
Bounded Rationality ◽  
National Parks ◽  
National Park ◽  
Contingent Valuation Method ◽  
Two Stage ◽  
Valuation Method ◽  
Preservation Value

Simplifying and popularizing the preservation values (valuation methods) of national parks—based on the premise of accuracy—shows stakeholders the importance of national parks, and is the basis for exploring sustainable use and development mechanisms. However, there are hypotheses biases, strategic biases, and starting point biases in regards to the existing evaluation methods. Therefore, based on the results of the contingent valuation method of research, under bounded rationality, this study uses the two-stage dichotomous choice contingent valuation and selects three methods to estimate the willingness to pay (WTP) for preservation at Wuyishan National Park. The results support that the two-stage contingent valuation method could effectively evade uncertainty with a “willingness to pay” decision making under bounded rationality, and factually reflect the real WTP. The results show that: (1) the average willingness to pay (truncated) of each household in Wuyishan National Park is CNY 609 (USD 93.90), which is similar to the actual average tourism expenditure of each household. (2) The cultural worldviews and perceived restorative environment have significant impacts on willingness to pay. (3) Comparing the preservation value of Wuyishan National Park with the actual financial input plays a positive role in manifesting the importance of Wuyishan National Park and attracting more financial input. The preservation value of Wuyishan National Park in the key market is about six times that of the basic market and one-third of that in the national market, which provides a theoretical basis for selecting the key tourism development market of Wuyishan National Park. (4) Those respondents believe that more funds should be put into protecting the national parks for their sustainable existence and bequeathing to future generations, which shows that the construction of the national park system is significant in improving natural values. This study attempted to provide theoretical support for improving non-market value and sustainable development of national parks.

scholarly journals Testing the effectiveness of the oath script in reducing the hypothetical bias in the Contingent Valuation Method  

2016 ◽  
Vol 62 (No. 8) ◽  
pp. 378-384 ◽  
Author(s):  
De-Magistris Tiziana ◽  
Akaichi Faical ◽  
Youssef Kamel Ben
Keyword(s):  
Contingent Valuation ◽  
Low Income ◽  
Contingent Valuation Method ◽  
Cognitive Task ◽  
Hypothetical Bias ◽  
High Educational Level ◽  
Mediterranean Country ◽  
Valuation Method ◽  
Contingent Valuation Survey ◽  
High Educational

The objective of the study is to investigate the effect of the oath script (HO) in an hypothetical Contingent Valuation survey in a Mediterranean country (e.g. Italy). Hence, there were conducted the CE surveys with three treatments: (1) CV without a cognitive task, (2) CV with a CT script, and (3) CV with a HO. The findings showed that the effectiveness of the HO script depends on the participants’ socio-demographic characteristics. For instance, it was found that the HO script could help to reduce the hypothetical bias for people who possess a high educational level in contrast with those people with low education and low income. Hence, the findings suggest that the oath script not only does not a guarantee the reduction of the hypothetical bias, but it also does not explain the mixed results found in the previous studies.

scholarly journals Incentive Compatible Referenda and the Valuation of Environmental Goods

1998 ◽  
Vol 27 (2) ◽  
pp. 132-139 ◽  
Author(s):  
Laura O. Taylor
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Experimental Tests ◽  
Choice Experiments ◽  
Hypothetical Bias ◽  
The Real ◽  
Environmental Goods ◽  
Incentive Compatible ◽  
Valuation Method

Recent attempts to test the validity of the contingent valuation method have relied on laboratory-type experiments. In these experiments, willingness to pay responses in hypothetical choice experiments are compared with responses from choice experiments requiring actual payments. Often evidence of hypothetical bias is found. Critical for these experimental tests of hypothetical surveys is that the methodology used to elicit willingness to pay from subjects in the real-payment experiment be demand revealing. If it is not, then differences in responses to hypothetical and real valuation questions could be due to free-riding in the real-payment survey and not due to hypothetical bias in the hypothetical survey. This paper reports on experiments that implement a theoretically incentive-compatible revelation mechanism (a closed referendum) to elicit responses to valuation questions in both hypothetical and real experiments. As in earlier studies, evidence of an upward hypothetical bias is found.

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