Correcting for the endogeneity of pro-environment behavioral choices in contingent valuation

Martı́nez-Espiñeira, Roberto; Lyssenko, Nikita

doi:10.1016/j.ecolecon.2011.02.007

Cited by 14 publications

(10 citation statements)

References 28 publications

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“…The endogeneity bias would be positive or negative if the sign of the effect of the unobserved characteristics of the individuals is the same or opposite, respectively [33].…”

Section: Discussionmentioning

confidence: 99%

“…This can enable the unobserved variables, SE * j and WTP * j , to be jointly distributed as a multivariate normal with a free correlation coefficient, ρ [33]. We first derived the determinants of WTP using the naïve model (Model 1) where acceptance is the dependent variable with the explanatory variables including experience.…”

Section: Discussionmentioning

confidence: 99%

“…After accounting for the correlation (endogeneity bias) between the experience and the error terms in the WTP model, each of the parameters of the explanatory variables changed. The effect of correcting the endogeneity bias could be dependent on the size of the relevant target population, which means the change in the mean WTP affecting policy decision making could be different for the level of the correction effect according to the relevant population [33]. It apparently seems that the mid-and downstream residents gain a lot of benefits from the fish biodiversity conservation seeking aquatic ecosystem improvement, whereas the upstream residents do not.…”

Section: Willingness To Pay and Benefit Calculationmentioning

confidence: 99%

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Economic Valuation of the Aquatic Biodiversity Conservation in South Korea: Correcting for the Endogeneity Bias in Contingent Valuation

et al. 2017

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Abstract:In this study, we use the Contingent Valuation (CV) method to estimate households' willingness to pay (WTP) for the aquatic ecosystem health (biodiversity) improvement. This paper extends CV studies by dealing with the endogenous effect of a proxy variable, namely the subjective experience of negative environmental quality changes. The results show that the correction for the endogeneity bias facilitates the efficiency of parameter estimation in the empirical model. The mean WTP per household accounts for around 46.8% (KRW 79.6) of the current water use charge (KRW 170 per cubic meter). The total benefit from conserving the biodiversity is around KRW 198.62 billion. We found several factors that affect households' WTP for fish biodiversity conservation, suggesting the importance of these factors in the formulation of water policies associated with aquatic biodiversity. In addition, the inefficient water management costs should be redistributed to other projects or new programs such as for the fish biodiversity conservation.

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“…The endogeneity bias would be positive or negative if the sign of the effect of the unobserved characteristics of the individuals is the same or opposite, respectively [33].…”

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Willingness To Pay and Benefit Calculationmentioning

confidence: 99%

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Economic Valuation of the Aquatic Biodiversity Conservation in South Korea: Correcting for the Endogeneity Bias in Contingent Valuation

et al. 2017

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“…The economic literature has already established the relevance of individualś attitudes and concerns as factors behind variability in WTP (e.g. Bartczak 2015;Martínez-Espiñeira and Lyssenko 2011;Spash 2006;Spash et al 2009). This paper illustrates this relevance in the Mexican context.…”

Section: Introductionmentioning

confidence: 99%

Impact of environmental and social attitudes, and family concerns on willingness to pay for improved air quality: a contingent valuation application in Mexico City

Filippini

Martínez-Cruz

2016

Lat Am Econ Rev

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By means of a single-bounded, referendum format contingent valuation, this paper estimates willingness to pay (WTP) for improved air quality among residents of Mexico City Metropolitan Area (MCMA). Findings from this paper illustrate heterogeneity in WTP associated with environmental and social attitudes, and family concerns. For instance, WTP is higher than average if respondents state a very high priority to air pollution but smaller than average if respondent's household contains more adults than the sample median. This contingent valuation exercise provides elements to carry out cost-benefit analysis of environmental policies both recently implemented and currently under discussion in the MCMA context. For instance, a cost-benefit analysis using estimates from this paper suggests benefits from improved air quality surpass the costs of investing in hybrid buses. Usefulness of this study is underscored by pointing out recent evidence suggesting that (1) air pollution in MCMA has larger health impacts than in similar cities located in developed countries, and (2) policies tackling air pollution in MCMA have had no impact on pollution levels.

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“…Second, the sample size is small. Nonetheless, other authors do not find significant differences in WTP estimates between probit and bivariate probit (Martínez-Espiñeira & Lyssenko, 2011). Table 4 shows mean WTP, computed using parameters from column (2) in Table 3.…”

Section: B Wtp Estimatesmentioning

confidence: 99%

Community-based conservation programs and local people willingness to pay for wildlife protection: The case of the cotton-top tamarin in the Colombian Caribbean

Vargas¹,

Díaz²

2014

Lec Econ

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Correcting for the endogeneity of pro-environment behavioral choices in contingent valuation

Cited by 14 publications

References 28 publications

Economic Valuation of the Aquatic Biodiversity Conservation in South Korea: Correcting for the Endogeneity Bias in Contingent Valuation

Economic Valuation of the Aquatic Biodiversity Conservation in South Korea: Correcting for the Endogeneity Bias in Contingent Valuation

Impact of environmental and social attitudes, and family concerns on willingness to pay for improved air quality: a contingent valuation application in Mexico City

Community-based conservation programs and local people willingness to pay for wildlife protection: The case of the cotton-top tamarin in the Colombian Caribbean

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