Estimation Using Contingent Valuation Data from a "Dichotomous Choice with Follow-Up" Questionnaire

Cameron, Trudy Ann; Quiggin, John

doi:10.1006/jeem.1994.1035

Cited by 407 publications

(326 citation statements)

References 0 publications

Supporting

Mentioning

313

Contrasting

Unclassified

Order By: Relevance

“…Recognising the large sample sizes required for statistically significant estimation when using the SB choice format, some CV surveys have incorporated a follow-up question in the elicitation format. Numerous studies have found differences in WTP implied by the first and second questions in this doublebounded CV format (Cameron and Quiggin, 1994;Hanemann et al, 1991;McFadden and Leonard, 1995). Several interpretations of the difference have been given.…”

Section: Elicitation Format and Stated Preferencesmentioning

confidence: 97%

A comparison of responses to single and repeated discrete choice questions

McNair

Bennett

Hensher

2011

Resource and Energy Economics

View full text Add to dashboard Cite

According to neoclassical economic theory, a stated preference elicitation format comprising a single binary choice between the status quo and one alternative is incentive compatible under certain conditions. Formats typically used in choice experiments comprising a sequence of discrete choice questions do not hold this property.In this paper, the effect on stated preferences of expanding the number of binary choice tasks per respondent from one to four is tested using a split sample treatment in an attribute-based survey relating to the undergrounding of overhead electricity and telecommunications wires. We find evidence to suggest that presenting multiple choice tasks per respondent decreases estimates of expected willingness to pay. Preferences stated in the first of a sequence of choice tasks are not significantly different from those stated in the incentive compatible single binary choice task, but, in subsequent choice tasks, responses are influenced by cost levels observed in past questions. Three behavioural explanations can be advanced -weak strategic misrepresentation, reference point revision and cost-driven value learning. The evidence is contrary to the standard assumption of truthful response with stable preferences.

show abstract

Section: Elicitation Format and Stated Preferencesmentioning

confidence: 97%

A comparison of responses to single and repeated discrete choice questions

McNair

Bennett

Hensher

2011

Resource and Energy Economics

View full text Add to dashboard Cite

show abstract

“…This is because there is evidence that some of the responses to the second bid are inconsistent with the responses to the first bid. A number of studies have dealt with this issue and have concluded that the DB elicitation method is internally inconsistent in that the hypothesis (that the first and second responses in the DB DC experiment are drawn from the same distribution) can be rejected at the 1% level (e.g., Cameron and Quiggin, 1994;McFadden, 1994). Bateman et al (2001) considered a variety of potential causes of such inconsistencies, tested both the effects caused by moving from SB to DB, and suggested that the responses to the second follow-up DB questions should not be used as the basis of valuation exercises.…”

Section: Elicitation Methodsmentioning

confidence: 99%

The External Benefits of Research and Development Investment in Waste-to-Energy Technology in Korea

Lim¹,

Kim²,

Yoo³

2016

KTIS

View full text Add to dashboard Cite

The Korean government considers expanding the WtE share of total energy from 1% to 5% by 2020 through research and development (R&D) in wasteto-energy (WtE) technologies. This study attempts to measure the external benefits of investing in R&D in these technologies. To this end, a contingent valuation (CV) is employed. More specifically, a 2016 national survey of randomly selected 1,000 households was carried out across the nation to gauge the willingness to pay (WTP) for the investment. One-and-one-half-bounded dichotomous choice question was used in the CV survey, and the spike model was applied to dealing with zero WTP responses. The mean yearly WTP is estimated to be KRW 4,175 (USD 3.57) per household, which is statistically significant at the 1% level. Expanding the value to the entire nation translates into an investment of about KRW 79.1 billion (USD 67.6 million), which can be interpreted as the annual external benefit of the R&D investment in WtE technology.

show abstract

“…We followed the so-called double-bounded dichotomous-choice format to elicit households WTP for improved public health services (Hanemann et al, 1991;Arrow et al, 1993;Cameroon and Quiggin, 1994). A dichotomous choice payment question asks the respondent if she would pay Birr X to obtain the good.…”

Section: Wtp Elicitation Formatmentioning

confidence: 99%

Micro Water Harvesting for Climate Change Mitigation: Trade-Offs between Health and Poverty Reduction in Northern Ethiopia

Hagos

Yohannes

Linderhof³

et al. 2006

SSRN Journal

View full text Add to dashboard Cite

Water harvesting is an important tool for mitigating the adverse effects of climate change. This report investigates the trade-offs between health and poverty reduction by considering the impacts of water harvesting on health in Tigray region, northern Ethiopia. In particular, we assess the prevalence of malaria in association with ponds and wells. The determinants of malaria incidence are explored with multivariate analysis. We investigate people's willingness to pay (WTP) for improved malaria control using a contingent valuation method (CVM). We applied a double-bounded dichotomous choice CV surveys to elicit households' WTP for improved health services to control malaria. With interval regression, the WTP was explained as a function of household characteristics, health and health service conditions, and village level factors. The malaria prevalence rate is very high, more than 30 percent in low land communities, although rates are higher after the rainy season. This suggests that ponds and wells are important factors in determining the prevalence of malaria. Better housing conditions, toilet type, and availability of bed nets are all factors which reduce the incidence of malaria.Pond and well ownership affects the WTP for improved malaria control in a negative and positive way respectively, indicating differences in their economic attractiveness. WTP decreases with altitude and thus malaria incidence. Education and household asset holding generally increases WTP for improved health services. The results suggest that valuation results on household's WTP in poor economies may be underestimated because of cash constraint. Consequently, alternative payment vehicles in eliciting households' WTP have to be considered. Similarly, the estimated mean WTP for the external health cost of wells and ponds may be underestimated. In our case, ponds and wells are not fully exploited, as our results suggest that they do not contribute to household income or welfare. Thus the presence of ponds and wells pose high external costs to the economy.

show abstract

Estimation Using Contingent Valuation Data from a "Dichotomous Choice with Follow-Up" Questionnaire

Cited by 407 publications

References 0 publications

A comparison of responses to single and repeated discrete choice questions

A comparison of responses to single and repeated discrete choice questions

The External Benefits of Research and Development Investment in Waste-to-Energy Technology in Korea

Micro Water Harvesting for Climate Change Mitigation: Trade-Offs between Health and Poverty Reduction in Northern Ethiopia

Contact Info

Product

Resources

About