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Contingent Valuation Design and Data Treatment: If You Can't Shoot the Messenger, Change the Message

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  • Clive L Spash

    (Commonwealth Scientific and Research Organisation, Sustainable Ecosystems Division, Canberra, Australian Capital Territory, Australia)

Abstract

The contingent valuation method has become an established and major part of the toolbox used to produce monetary values for evaluating environmental changes. It has been used to inform everything from the value of ecosystem services to cultural heritage to loss of life. The method has been highly controversial at various stages but despite this, or perhaps due to the publicity, it has grown in scope and scale. Numerous occurrences of ‘bias’ and ‘anomalies’ in results have been addressed by improved design, so providing guidance on perfected approaches to making sure respondents reveal preferences in accord with theoretical expectations. That respondents may not wish to and often fail to conform is seen as a challenge for the design team to be more ingenious with their incentive mechanisms which get respondents to act ‘rationally’. Failing this, data can be classified and treated to derive ‘conservative’ results. I document in this paper how whole areas of evidence from contingent valuation have been removed from consideration by design, with respondents expected to conform to an idealised rational agent model or to suffer branding and exclusion as having the ‘wrong motives’. While the method is then susceptible to manipulation (eg to meet sponsors' requirements), if used more scientifically it also holds the potential to reveal fundamental flaws in economic theory and ways to advance that same theory.

Suggested Citation

  • Clive L Spash, 2008. "Contingent Valuation Design and Data Treatment: If You Can't Shoot the Messenger, Change the Message," Environment and Planning C, , vol. 26(1), pages 34-53, February.
  • Handle: RePEc:sae:envirc:v:26:y:2008:i:1:p:34-53
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    Citations

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    Cited by:

    1. Spash, Clive L., 2015. "Bulldozing Biodiversity: The Economics of Optimal Extinction," SRE-Discussion Papers 2015/01, WU Vienna University of Economics and Business.
    2. Sara Moreno Pires & Liam Magee & Meg Holden, 2017. "Learning from community indicators movements: Towards a citizen-powered urban data revolution," Environment and Planning C, , vol. 35(7), pages 1304-1323, November.
    3. Lucia Reisch & Clive L Spash & Sabine Bietz, 2008. "Sustainable Consumption and Mass Communication: A German Experiment," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2008-12, CSIRO Sustainable Ecosystems.
    4. Ivan Diaz‐Rainey & John K. Ashton, 2011. "Profiling potential green electricity tariff adopters: green consumerism as an environmental policy tool?," Business Strategy and the Environment, Wiley Blackwell, vol. 20(7), pages 456-470, November.
    5. Ivan Diaz-Rainey & Dionisia Tzavara, 2011. "Financing Renewable Energy through Household Adoption of Green Electricity Tariffs: A Diffusion Model of an Induced Environmental Market," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2011-03, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    6. Adaman, Fikret & KaralI, Nihan & Kumbaroglu, Gürkan & Or, Ilhan & Özkaynak, Begüm & Zenginobuz, Ünal, 2011. "What determines urban households' willingness to pay for CO2 emission reductions in Turkey: A contingent valuation survey," Energy Policy, Elsevier, vol. 39(2), pages 689-698, February.
    7. Parks, Sarah & Gowdy, John, 2013. "What have economists learned about valuing nature? A review essay," Ecosystem Services, Elsevier, vol. 3(C), pages 1-10.
    8. Ryan, Anthony M. & Spash, Clive L., 2011. "Is WTP an attitudinal measure? Empirical analysis of the psychological explanation for contingent values," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 674-687.
    9. Susan Geertshuis & Otto Krickl, 2013. "Value Judgements and Continuing Education," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 2(1), pages 123-141.
    10. Roel Plant & Spike Boydell & Jason Prior & Joanne Chong & Aleta Lederwasch, 2017. "From liability to opportunity: An institutional approach towards value-based land remediation," Environment and Planning C, , vol. 35(2), pages 197-220, March.

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