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Contingent Valuation Method (contingent + valuation_method)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	60%

Selected Abstracts

An Examination of the Disparity Between Hypothetical and Actual Willingness to Pay Using the Contingent Valuation Method: The Case of Red Kite Conservation in the United Kingdom

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 2 2007
Michael Christie
This paper reports the findings of a field experiment that explores the criterion validity of the contingent valuation (CV) method. The empirical experiment examined the disparity between hypothetical and actual willingness to pay (WTP) bids for Red Kite conservation in Wales. Hypothetical WTP was elicited using an open-ended CV instrument, while the actual WTP value was determined from actual donations to the Welsh Kite Trust,a charity set up to aid the conservation of Red Kites in Wales. The survey results indicate that hypothetical WTP was three times greater than the mean value of actual donations; this finding is consistent with a number of other criterion validity experiments. However, we also demonstrate equality of hypothetical and actual WTP among those who actually express a payment amount. Further investigations identify that an underlying cause of this disparity stems from the respondents of the CV survey overstating their intention of pay. This observation has potentially significant implication for CV design in that it suggests that the emphasis in design should be placed much more fully on initially determining whether people would actually pay at all. Le présent article présente les résultats d'une expérience sur le terrain qui a exploré la validité de critère de la méthode d'évaluation contingente (CV). L'expérience empirique a examiné l'écart entre la volonté de payer (VDP) hypothétique et réelle pour la conservation du milan royal dans le pays de Galles. La VDP hypothétique a été obtenue en utilisant un questionnaire ouvert pour effectuer l'évaluation contingente (CV), tandis que la valeur de la VDP réelle a été déterminée d'après les dons réels versés àThe Welsh Kite Trust, organisation caritative créée pour la conservation du milan royal au pays de Galles. Les résultats du sondage ont indiqué que la VDP hypothétique était trois fois supérieures à la valeur moyenne des dons réels; ce résultat rejoint ceux d'autres expériences sur la validité de critère. Cependant, nous avons aussi démontré une égalité entre la VDP hypothétique et réelle des personnes qui ont exprimé le montant du don. Des sondages ultérieurs ont montré qu'une des causes sous-jacentes de cet écart venait du fait que les répondants avaient exagéré leur intention de payer. Cette observation a une implication potentielle importante pour la conception d'évaluation contingente puisqu'elle laisse supposer que l'accent mis sur la conception devrait plutôt être mis sur la détermination initiale de l'intention des personnes à payer ou non. [source]

Testing the convergent validity of the contingent valuation and travel cost methods in valuing the benefits of health care

HEALTH ECONOMICS, Issue 2 2002
Philip M. Clarke
Abstract In this study, the convergent validity of the contingent valuation method (CVM) and travel cost method (TCM) is tested by comparing estimates of the willingness to pay (WTP) for improving access to mammographic screening in rural areas of Australia. It is based on a telephone survey of 458 women in 19 towns, in which they were asked about their recent screening behaviour and their WTP to have a mobile screening unit visit their nearest town. After eliminating missing data and other non-usable responses the contingent valuation experiment and travel cost model were based on information from 372 and 319 women, respectively. Estimates of the maximum WTP for the use of mobile screening units were derived using both methods and compared. The highest mean WTP estimated using the TCM was $83.10 (95% C.I. $99.06,$68.53), which is significantly less than the estimate of $148.09 ($131.13,$166.60) using the CVM. This could be due to the CVM estimates also reflecting non-use values such as altruism, or a range of potential biases that are known to affect both methods. Further tests of validity are required in order to gain a greater understanding of the relationship between these two methods of estimating WTP. Copyright © 2001 John Wiley & Sons, Ltd. [source]

The Value of Employer-Sponsored Child Care to Employees

INDUSTRIAL RELATIONS, Issue 4 2004
Rachel Connelly
This article uses the contingent valuation method for calculating the value of employer-sponsored child care to employees. Like many environmental amenities, there may be a nonuse or existence value of working for a company that offers employer-sponsored child care (ESCC), as well as a use value to parents who have children in the center. We test this hypothesis using data from three firms, two of which have on-site child care. Our findings indicate that price is a determinant of willingness to pay for the continued existence or establishment of an on-site center. We find evidence of the existence value, even for employees without young children, and a greater valuation among recent hires than among longer-term employees. [source]

Comparing money and labour payment in contingent valuation: the case of forest fire prevention in Vietnamese context

JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 2 2007
Le Trong Hung
Abstract The contingent valuation method for valuing public goods is a relatively new method in Vietnam. In developed countries, payments are often requested in money, but the form of payment should be more flexible in developing countries that do not have extensive cash economies. Drawing on historical precedent in Vietnam, payment in working days was also used and accepted by the local people; payment in money was less acceptable for the firebreak establishment and maintenance programme. The household mean willingness to pay for the firebreak establishment and maintenance programme was five days a year. The contingent valuation method was found workable at least for a forest fire prevention programme in the Vietnamese context. The lessons learned from this study should be of interest to researchers and policy makers considering applying the contingent valuation method in newly emerging market economies. Copyright © 2006 John Wiley & Sons, Ltd. [source]

Testing for convergent validity between travel cost and contingent valuation estimates of recreation values in the Coorong, Australia,

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 4 2010
John Rolfe
A number of studies valuing recreation have shown that the travel cost method (TCM) generates higher estimates of value than the contingent valuation method (CVM), even though the latter is commonly associated with potential problems of hypothetical and strategic bias. In this study, both methods have been used to estimate the recreational values associated with the Coorong on the Murray River in south-eastern Australia. Values per adult visitor per recreation day are estimated with the TCM at $149 and with the CVM at $116. A number of methodological and framing issues to explain these value differences are tested. In summary, while no single methodological or framing issue could be identified that would reconcile the difference between TCM and CVM values, it appears likely that there may be a combination of factors that drive the systematic variations in consumer surplus values. The evidence in this study suggests that the most important of these are likely to be the different decision points underpinning data collection and the consideration of substitute sites, strategic responses and the treatment of uncertain responses within the CVM. [source]