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Protest Responses in Contingent Valuation

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  • Bradley Jorgensen

    ()

  • Geoffrey Syme
  • Brian Bishop
  • Blair Nancarrow
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    Abstract

    A significant number of respondents to contingent valuation surveys tend to either state a zero bid, or refuse to state a bid at all, for reasons associated with the process of valuation. These protest responses are routinely removed from contingent valuation samples because it is assumed that they are not indicative of respondents’ ‘true’ values. The censoring of protest responses has led to the emergence of a definitional controversy. One view is that the definition of protest responses and the rules for censoring them are dependent on whether the practitioner conceives of the contingent valuation survey as a market or as a referendum. However, what is not acknowledged is the possibility that protest responses and their meaning may vary according to the type of good being valued, the elicitation format, and the interaction between these elements and external factors. This potential renders the development of unambiguous rules for censoring protest responses difficult. Moreover, when willingness to pay is viewed as a behavioural intention, it becomes important to determine what the responses actually mean. This approach does not assume an interpretative position a priori against which the responses should be judged, but seeks to inform an existing understanding which is inadequate. Copyright Kluwer Academic Publishers 1999

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    File URL: http://hdl.handle.net/10.1023/A:1008372522243
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    Bibliographic Info

    Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

    Volume (Year): 14 (1999)
    Issue (Month): 1 (July)
    Pages: 131-150

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    Handle: RePEc:kap:enreec:v:14:y:1999:i:1:p:131-150

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    Web page: http://www.springerlink.com/link.asp?id=100263

    Related research

    Keywords: contingent valuation; protest responses; willingness to pay; stormwater pollution;

    References

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    1. Fischhoff, Baruch & Furby, Lita, 1988. " Measuring Values: A Conceptual Framework for Interpreting Transactions with Special Reference to Contingent Valuation of Visibility," Journal of Risk and Uncertainty, Springer, vol. 1(2), pages 147-84, June.
    2. Hoevenagel, R. & van der Linden, J. W., 1993. "Effects of different descriptions of the ecological good on willingness to pay values," Ecological Economics, Elsevier, vol. 7(3), pages 223-238, June.
    3. Anne-Marie Aish & Karl Jöreskog, 1990. "A panel model for political efficacy and responsiveness: an application of LISREL 7 with weighted least squares," Quality & Quantity: International Journal of Methodology, Springer, vol. 24(4), pages 405-426, November.
    4. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-76, May.
    5. Whittington, Dale & Smith, V. Kerry & Okorafor, Apia & Okore, Augustine & Liu, Jin Long & McPhail, Alexander, 1992. "Giving respondents time to think in contingent valuation studies: A developing country application," Journal of Environmental Economics and Management, Elsevier, vol. 22(3), pages 205-225, May.
    6. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    7. Christine Seller & John R. Stoll & Jean-Paul Chavas, 1985. "Validation of Empirical Measures of Welfare Change: A Comparison of Nonmarket Techniques," Land Economics, University of Wisconsin Press, vol. 62(2), pages 156-175.
    8. Steven F. Edwards & Glen D. Anderson, 1987. "Overlooked Biases in Contingent Valuation Surveys: Some Considerations," Land Economics, University of Wisconsin Press, vol. 63(2), pages 168-178.
    9. Milon, J. Walter, 1989. "Contingent valuation experiments for strategic behavior," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 293-308, November.
    10. Halstead, John M. & Luloff, A.E. & Stevens, Thomas H., 1992. "Protest Bidders In Contingent Valuation," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(2), October.
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