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Consumer versus citizen preferences in contingent valuation: evidence on the role of question framing

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  • Ovaskainen, Ville
  • Kniivila, Matleena
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    Abstract

    Rather than individual consumer preferences, responses to referendum-style contingent valuation surveys on environmental goods may express citizen assessments that take into account benefits to others. We reconsider the consumer versus citizen hypothesis with a focus on the role of framing information. Survey data on conservation areas in Ilomantsi, Finland, are used. Different versions of the valuation question were used to encourage the respondents to take the consumer or the citizen role. The citizen version expectedly resulted in substantially fewer zero-WTP responses and protests and higher mean and median WTP, suggesting that the framing information has a major effect on the preferences expressed. The findings support the idea of multiple preferences. For a more confident interpretation of contingent valuation responses, future studies should recognise their intended use in survey design and gain information about respondents’ motives to determine the presence and type of altruistic motives.

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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 49 (2005)
    Issue (Month): 4 (December)
    Pages:

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    Handle: RePEc:ags:aareaj:118585

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    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    Related research

    Keywords: altruism; benefit–cost analysis; conservation areas; contingent valuation; multiple preference orderings; referendum; spike model; Consumer/Household Economics;

    References

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    1. Bengt Kristr�m, 1997. "Spike Models in Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1013-1023.
    2. Blamey, Russell K. & Common, Mick S. & Quiggin, John C., 1995. "Respondents To Contingent Valuation Surveys: Consumers Or Citizens?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December.
    3. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    4. Clinch, J Peter & Murphy, Anthony, 2001. "Modelling Winners and Losers in Contingent Valuation of Public Goods: Appropriate Welfare Measures and Econometric Analysis," Economic Journal, Royal Economic Society, vol. 111(470), pages 420-43, April.
    5. Anni Huhtala, 2000. "Binary Choice Valuation Studies with Heteregeneous Preferences Regarding the Program Being Valued," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 16(3), pages 263-279, July.
    6. Ajzen, Icek & Brown, Thomas C. & Rosenthal, Lori H., 1996. "Information Bias in Contingent Valuation: Effects of Personal Relevance, Quality of Information, and Motivational Orientation," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 43-57, January.
    7. Haab, Timothy C. & McConnell, Kenneth E., 1997. "Referendum Models and Negative Willingness to Pay: Alternative Solutions," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 251-270, February.
    8. McConnell, K. E., 1997. "Does Altruism Undermine Existence Value?," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 22-37, January.
    9. Thomas H. Stevens & Jaime Echeverria & Ronald J. Glass & Tim Hager & Thomas A. More, 1991. "Measuring the Existence Value of Wildlife: What Do CVM Estimates Really Show?," Land Economics, University of Wisconsin Press, vol. 67(4), pages 390-400.
    10. Per-Olov Johansson, 1992. "Altruism in cost-benefit analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(6), pages 605-613, November.
    11. John C. Harsanyi, 1955. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility," Journal of Political Economy, University of Chicago Press, vol. 63, pages 309.
    12. Curtis, John A. & McConnell, Kenneth E., 2002. "The citizen versus consumer hypothesis: Evidence from a contingent valuation survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), March.
    13. Keith, John E. & Fawson, Christopher & Johnson, Van, 1996. "Preservation or use A contingent valuation study of wilderness designation in Utah," Ecological Economics, Elsevier, vol. 18(3), pages 207-214, September.
    14. Douglas Macmillan & Elizabeth Duff & David Elston, 2001. "Modelling the Non-market Environmental Costs and Benefits of Biodiversity Projects Using Contingent Valuation Data," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(4), pages 391-410, April.
    15. Nyborg, Karine, 2000. "Homo Economicus and Homo Politicus: interpretation and aggregation of environmental values," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 305-322, July.
    16. Salvador Del Saz-Salazar & Leandro Garcia-Menendez, 2001. "Willingness to Pay for Environmental Improvements in a Large City Evidence from The Spike Model and From a Non-Parametric Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(2), pages 103-112, October.
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    Cited by:
    1. Lindhjem, Henrik, 2007. "20 years of stated preference valuation of non-timber benefits from Fennoscandian forests: A meta-analysis," Journal of Forest Economics, Elsevier, vol. 12(4), pages 251-277, February.
    2. van der Heide, C.M. & Blaeij, A.T. de & Heijman, Wim J.M., 2008. "Economic Aspects in Landscape Decision-making: a Participatory Planning Tool based on a Representative Approach," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43949, European Association of Agricultural Economists.
    3. Kniivila, Matleena, 2006. "Users and non-users of conservation areas: Are there differences in WTP, motives and the validity of responses in CVM surveys?," Ecological Economics, Elsevier, vol. 59(4), pages 530-539, October.

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