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Comparing welfare estimates across stated preference and uncertainty elicitation formats for air quality improvements in Nairobi, Kenya

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  • Ndambiri, Hilary
  • Brouwer, Roy
  • Mungatana, Eric

Abstract

The effect of preference uncertainty on estimated willingness to pay (WTP) is examined using identical payment cards and alternative uncertainty elicitation procedures in three split samples, focusing on air quality improvement in Nairobi. The effect of the stochastic payment card (SPC) and polychotomous payment card (PPC) are compared with a conventional payment card (PC). Substantial financial support is found for improved air quality in Nairobi, with approximately 85 per cent of the whole sample stating a positive WTP. The way WTP values are elicited, with and without ability to express preference uncertainty, has significant effect on WTP welfare estimate. Allowing respondents to express experienced uncertainty when stating WTP value yields more conservative but less accurate WTP values for inclusion in policy analysis. The PPC seems to hold more promise since it is easier to understand and imposes less cognitive burden on survey participants than the SPC in a developing country context.

Suggested Citation

  • Ndambiri, Hilary & Brouwer, Roy & Mungatana, Eric, 2016. "Comparing welfare estimates across stated preference and uncertainty elicitation formats for air quality improvements in Nairobi, Kenya," Environment and Development Economics, Cambridge University Press, vol. 21(5), pages 649-668, October.
    • Handle: RePEc:cup:endeec:v:21:y:2016:i:05:p:649-668_00
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    Cited by:

    1. Ndebele, Tom, 2020. "Assessing the potential for consumer-driven renewable energy development in deregulated electricity markets dominated by renewables," Energy Policy, Elsevier, vol. 136(C).
    2. Jing Ning & Jianjun Jin & Foyuan Kuang & Xinyu Wan & Chenyang Zhang & Tong Guan, 2019. "The Valuation of Grassland Ecosystem Services in Inner Mongolia of China and Its Spatial Differences," Sustainability, MDPI, vol. 11(24), pages 1-14, December.

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