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Minimising Payment Vehicle Bias in Contingent Valuation Studies

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Author Info
M. Morrison
R. Blamey
J. Bennett ()

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Abstract

The payment vehicle is a crucial element inapplications of the contingent valuation methodbecause it provides the context for payment. However,in many countries a relative unfamiliarity with theuse of tax levies and referenda can affect theplausibility of payment vehicles and lead to paymentvehicle bias. The most commonly used approach fordetermining whether payment bias exists is to usetests of convergent validity. It is demonstrated thatsimple tests of convergent validity can be ineffectivein diagnosing the existence of payment vehicle bias.Payment vehicle bias is found to occur because ofdifferences in the coverage of payment vehicles anddoubts about payment being one-off. When respondentsare found to be protesting against a particularpayment vehicle, the current state of the art approachis to delete them from the sample. In this paper analternative approach that relies on the recoding ofprotest responses is proposed. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1008368611972
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 16 (2000)
Issue (Month): 4 (August)
Pages: 407-422
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Handle: RePEc:kap:enreec:v:16:y:2000:i:4:p:407-422

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Related research
Keywords: contingent valuation; payment vehicle bias; wetlands;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Carson, Richard T. & Hanemann, W. Michael, 2006. "Contingent Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936 Elsevier. [Downloadable!] (restricted)
  2. Thomas H. Stevens & Nichole E. DeCoteau & Cleve E. Willis, 1997. "Sensitivity of Contingent Valuation to Alternative Payment Schedules," Land Economics, University of Wisconsin Press, vol. 73(1), pages 140-148. [Downloadable!] (restricted)
  3. Rowe, Robert D. & D'Arge, Ralph C. & Brookshire, David S., 1980. "An experiment on the economic value of visibility," Journal of Environmental Economics and Management, Elsevier, vol. 7(1), pages 1-19, March. [Downloadable!] (restricted)
  4. Hayes, Karen M. & Tyrrell, Timothy J. & Anderson, Glen, 1992. "Estimating the Benefits of Water Quality Improvements in the Upper Narragansett Bay," Marine Resource Economics, Marine Resources Foundation, vol. 7(1). [Downloadable!]
  5. Loomis John & Lockwood Michael & DeLacy Terry, 1993. "Some Empirical Evidence on Embedding Effects in Contingent Valuation of Forest Protection," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 45-55, July. [Downloadable!] (restricted)
  6. Portney, Paul R, 1994. "The Contingent Valuation Debate: Why Economists Should Care," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 3-17, Fall. [Downloadable!] (restricted)
  7. STÅLE Navrud & GERALD Pruckner, 1997. "Environmental Valuation – To Use or Not to Use? A Comparative Study of the United States and Europe," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(1), pages 1-26, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. John Bergstrom & Kevin Boyle & Mitsuyasu Yabe, 2004. "Trading Taxes vs. Paying Taxes to Value and Finance Public Environmental Goods," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(4), pages 533-549, August. [Downloadable!] (restricted)
  2. Morrison, Mark, 2001. "Non-market Valuation Databases: How Useful Are They?," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 31(1), pages 33-56, March. [Downloadable!]
  3. Paulo Nunes & Chiara Travisi, 2009. "Comparing Tax and Tax Reallocation Payments in Financing Rail Noise Abatement Programmes: Results from a Stated Choice Valuation Study in Italy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(4), pages 503-517, August. [Downloadable!] (restricted)
  4. Jürgen Meyerhoff & Ulf Liebe, 2008. "Do protest responses to a contingent valuation question and a choice experiment differ?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(4), pages 433-446, April. [Downloadable!] (restricted)
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