A Comparison Between the Conventional Stated Preference Technique and an Inferred Valuation Approach

Abstract

Contrary to conventional stated preference valuation techniques that employ a direct questioning approach, the inferred valuation method utilises indirect questioning where respondents are asked for their belief regarding others’ values for a good or service. In this study, using choice experiments, we compare the results obtained through the two valuation techniques for environmental features of the Burren landscape in western Ireland. Consistent with previous studies, stated values using the conventional approach are found to be significantly higher than those obtained through the inferred valuation approach. In particular, this study highlights the dissimilarities in relative preferences observed between the two landscape attributes (rocky limestone pavements and orchid‐rich grasslands) from the two questioning formats. While respondents were indifferent between the two habitats, they believed the ‘average other’ to be significantly more concerned about the conservation of the rocky limestone pavements. We attribute this divergence in preferences to be a consequence of additional normative motives perceived by respondents with regard to the conservation of orchid‐rich grasslands.

What influences the probability of wind farm planning approval: Evidence from Ireland

“…Unfortunately, only a few studies have attempted to rigorously quantify key influences on historical planning outcomes (Haggett and Toke, 2006;Horst, van der and Toke, 2010;Toke, 2005aToke, , 2005b. Most other studies rely upon findings from stated preference surveys and choice experiments investigating public attitudes and perceptions about wind power (Alvarez-Farizo and Hanley, 2002;Bergmann et al, 2006;Longo et al, 2008;Yadav et al, 2012). Such studies find conflicting positive (Eltham et al, 2008) and negative attitudes (Devine-Wright, 2005a;Landenburg and Dubgaard, 2007;Meyerhoff et al, 2010;Navrud and Braten, 2007), where the latter responses are more common the greater the degree of proximity of the project to the respondents' residences, i.e.…”

A micro-simulation evaluation of the effectiveness of an Irish grass roots agri-environmental scheme

“…The latter technique involved additional indirect questions that asked for respondents predictions about other's potential contributions (List and Gallet, 2001;Murphy et al, 2005;Harrison and Rutström, 2008). In the Yadav et al (2010) study, the indirect question WTP was observed to be 2.5 and 3.1 times smaller than the direct question WTP. Therefore, direct response WTPs were used as the primary measures, and the indirect responses were used as a lower bound estimate of respondents WTP for Burren landscape amenity.…”

“…These estimates were based on the results of a stated preference survey of 292 Irish national respondents in counties adjacent to the Burren region (Galway, Limerick, and Clare) as well as more distant regions (Dublin, Westmeath and Sligo) see Yadav et al (2010). A key innovation of this survey was the use of both direct and indirect willingness to pay (WTP) valuation techniques.…”

“…The Yadav et al (2010) survey also provides estimates of the tourism spend and associated economic impact ω Tourism of a hectare of BLP land. Of the respondents in this sample, 70% indicated that they spent money on food (an average of D26.60 per visit) 23% spent money in pubs (an average of D48.06 per visit), 12% spent money on accommodation (an average of D114.68 per visit) and 7% spent money on other items such as buying gifts, etc.…”

Consumers’ Valuation of Rice‐Grade Labeling

“…Thus, participants who answer a direct question in the presence of an interviewer may present socially acceptable preferences instead of showing their true preferences (Leggett et al ; List et al ). IV was originally developed to alleviate potential social desirability bias by asking indirect questions of participants (Lusk and Norwood ; Stachtiaris et al ; Yadav et al ). Participants are asked to predict other people's potential behaviors, and thus, infer their preferences.…”