IDEAS home Printed from https://ideas.repec.org/a/sae/envval/v33y2024i2p163-188.html
   My bibliography  Save this article

‘I didn’t count “willingness to pay†as part of the value’: Monetary valuation through respondents’ perspectives

Author

Listed:
  • Lina Isacs

    (Institute for Housing and Urban Research, Uppsala University, Uppsala
    Department of Economic History, Uppsala University, Uppsala, Sweden)

  • Cecilia HÃ¥kansson

    (KTH, Royal Institute of Technology, Department of Sustainable Development, Environmental Sciences and Engineering, Stockholm, Sweden)

  • Therese Lindahl

    (The Beijer Institute of Ecological Economics, The Royal Swedish Academy of Science, Stockholm, Sweden
    Stockholm Resilience Centre, Stockholm University, Stockholm, Sweden)

  • Ulrika Gunnarsson-Östling

    (KTH, Royal Institute of Technology, Department of Sustainable Development, Environmental Sciences and Engineering, Stockholm, Sweden)

  • Pernilla Andersson

    (Uppsala University, Department of Education, Uppsala, Sweden)

Abstract

A frequent justification in the literature for using stated preference methods (SP) is that they are the only methods that can capture the so-called total economic value (TEV) of environmental changes to society. Based on follow-up interviews with SP survey respondents, this paper addresses the implications of that argument by shedding light on the construction of TEV, through respondents’ perspective. It illuminates the deficiencies of willingness to pay (WTP) as a measure of value presented as three aggregated themes considering respondents’ unintentionality, their retraction once they understood that their WTP could be decisive in cost-benefit analysis and the inherent incompleteness of WTP. We discuss why the TEV discourse persists, how it conceals rather than reveals broader notions of value and in what ways our results support the development of alternative approaches that truly endorse plurality in environmental valuation and decision-making.

Suggested Citation

  • Lina Isacs & Cecilia HÃ¥kansson & Therese Lindahl & Ulrika Gunnarsson-Östling & Pernilla Andersson, 2024. "‘I didn’t count “willingness to pay†as part of the value’: Monetary valuation through respondents’ perspectives," Environmental Values, , vol. 33(2), pages 163-188, April.
    • Handle: RePEc:sae:envval:v:33:y:2024:i:2:p:163-188
    DOI: 10.1177/09632719241231509
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09632719241231509
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09632719241231509?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kahneman, Daniel & Ritov, Ilana & Schkade, David A, 1999. "Economic Preferences or Attitude Expressions?: An Analysis of Dollar Responses to Public Issues," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 203-235, December.
    2. Ivan Boldyrev & Ekaterina Svetlova (ed.), 2016. "Enacting Dismal Science," Perspectives from Social Economics, Palgrave Macmillan, number 978-1-137-48876-3, December.
    3. Catherine L. Kling & Daniel J. Phaneuf & Jinhua Zhao, 2012. "From Exxon to BP: Has Some Number Become Better Than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 3-26, Fall.
    4. Nick Hanley & Mikołaj Czajkowski, 2019. "The Role of Stated Preference Valuation Methods in Understanding Choices and Informing Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 248-266.
    5. repec:sae:envval:ev31:commev3101 is not listed on IDEAS
    6. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    7. Kenter, Jasper O., 2016. "Integrating deliberative monetary valuation, systems modelling and participatory mapping to assess shared values of ecosystem services," Ecosystem Services, Elsevier, vol. 21(PB), pages 291-307.
    8. Nicholas Bardsley & Graziano Ceddia & Rachel McCloy & Simone Pfuderer, 2022. "Why Economic Valuation Does Not Value the Environment: Climate Policy as Collective Endeavour," Environmental Values, , vol. 31(3), pages 277-293, June.
    9. repec:sae:envval:ev31:ev3111 is not listed on IDEAS
    10. Robert Tinch & Nicola Beaumont & Tim Sunderland & Ece Ozdemiroglu & David Barton & Colm Bowe & Tobias Börger & Paul Burgess & Canon Nigel Cooper & Michela Faccioli & Pierre Failler & Ioanna Gkolemi & , 2019. "Economic valuation of ecosystem goods and services: a review for decision makers," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 8(4), pages 359-378, October.
    11. Clark, Judy & Burgess, Jacquelin & Harrison, Carolyn M., 2000. ""I struggled with this money business": respondents' perspectives on contingent valuation," Ecological Economics, Elsevier, vol. 33(1), pages 45-62, April.
    12. Richard T. Carson & W. Michael Hanemann & Dale Whittington, 2020. "The Existence Value of a Distinctive Native American Culture: Survival of the Hopi Reservation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 931-951, April.
    13. Dunford, Rob & Harrison, Paula & Smith, Alison & Dick, Jan & Barton, David N. & Martin-Lopez, Berta & Kelemen, Ezsther & Jacobs, Sander & Saarikoski, Heli & Turkelboom, Francis & Verheyden, Wim & Hauc, 2018. "Integrating methods for ecosystem service assessment: Experiences from real world situations," Ecosystem Services, Elsevier, vol. 29(PC), pages 499-514.
    14. Fabian Muniesa & Yuval Millo & Michel Callon, 2007. "An introduction to market devices," Post-Print halshs-00177928, HAL.
    15. Clive L. Spash, 2021. "Conceptualising Nature: From Dasgupta to Degrowth," Environmental Values, , vol. 30(3), pages 265-275, June.
    16. Caroline Vass & Dan Rigby & Katherine Payne, 2017. "The Role of Qualitative Research Methods in Discrete Choice Experiments," Medical Decision Making, , vol. 37(3), pages 298-313, April.
    17. Spash, Clive L. & Urama, Kevin & Burton, Rob & Kenyon, Wendy & Shannon, Peter & Hill, Gary, 2009. "Motives behind willingness to pay for improving biodiversity in a water ecosystem: Economics, ethics and social psychology," Ecological Economics, Elsevier, vol. 68(4), pages 955-964, February.
    18. Clive L. Spash, 2022. "Three Decades of Environmental Values: Some Personal Reflections," Environmental Values, , vol. 31(1), pages 1-14, February.
    19. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    20. Clive L. Spash, 2008. "Deliberative Monetary Valuation and the Evidence for a New Value Theory," Land Economics, University of Wisconsin Press, vol. 84(3), pages 469-488.
    21. Roy Brouwer & Neil Powe & R. Kerry Turner & Ian J. Bateman & Ian H. Langford, 1999. "Public Attitudes to Contingent Valuation and Public Consultation1," Environmental Values, , vol. 8(3), pages 325-347, August.
    22. 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.
    23. H. Spencer Banzhaf, 2009. "Objective or Multi-Objective? Two Historically Competing Visions for Benefit-Cost Analysis," Land Economics, University of Wisconsin Press, vol. 85(1), pages 3-23.
    24. Jerry Hausman, 2012. "Contingent Valuation: From Dubious to Hopeless," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 43-56, Fall.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Felix Schläpfer, 2021. "Inadequate Standards in the Valuation of Public Goods and Ecosystem Services: Why Economists, Environmental Scientists and Policymakers Should Care," Sustainability, MDPI, vol. 13(1), pages 1-10, January.
    2. Wanek, Eva & Bartkowski, Bartosz & Bourgeois-Gironde, Sacha & Schaafsma, Marije, 2023. "Deliberately vague or vaguely deliberative: A review of motivation and design choices in deliberative monetary valuation studies," Ecological Economics, Elsevier, vol. 208(C).
    3. Richard C. Bishop & Kevin J. Boyle, 2021. "On Adding-Up as a Validity Criterion for Stated-Preference Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(3), pages 587-601, November.
    4. Jacob Ainscough & Jasper O. Kenter & Elaine Azzopardi & A. Meriwether W. Wilson, 2024. "Participant perceptions of different forms of deliberative monetary valuation: Comparing democratic monetary valuation and deliberative democratic monetary valuation in the context of regional marine ," Environmental Values, , vol. 33(2), pages 189-215, April.
    5. Ulrich J Frey & Frauke Pirscher, 2019. "Distinguishing protest responses in contingent valuation: A conceptualization of motivations and attitudes behind them," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-20, January.
    6. Daniel A. Brent & Lata Gangadharan & Anke D. Leroux & Paul A. Raschky, 2022. "Reducing bias in preference elicitation for environmental public goods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 280-308, April.
    7. Gordillo, Fernando & Elsasser, Peter & Günter, Sven, 2019. "Willingness to pay for forest conservation in Ecuador: Results from a nationwide contingent valuation survey in a combined “referendum” – “Consequential open-ended” design," Forest Policy and Economics, Elsevier, vol. 105(C), pages 28-39.
    8. Sawe, Nik, 2017. "Using neuroeconomics to understand environmental valuation," Ecological Economics, Elsevier, vol. 135(C), pages 1-9.
    9. Lo, Alex Y. & Spash, Clive L., 2011. "Articulation of Plural Values in Deliberative Monetary Valuation: Beyond Preference Economisation and Moralisation," MPRA Paper 30002, University Library of Munich, Germany.
    10. Anders Dugstad & Kristine Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2020. "Scope elasticity and economic significance in discrete choice experiments," Discussion Papers 942, Statistics Norway, Research Department.
    11. Amoah, Anthony & Ferrini, Silvia & Schaafsma, Marije, 2019. "Electricity outages in Ghana: Are contingent valuation estimates valid?," Energy Policy, Elsevier, vol. 135(C).
    12. Perni, Ángel & Barreiro-Hurlé, Jesús & Martínez-Paz, José Miguel, 2021. "Contingent valuation estimates for environmental goods: Validity and reliability," Ecological Economics, Elsevier, vol. 189(C).
    13. Baker, Rick & Ruting, Brad, 2014. "Environmental Policy Analysis: A Guide to Non‑Market Valuation," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165810, Australian Agricultural and Resource Economics Society.
    14. Richard C. Bishop & Kevin J. Boyle, 2019. "Reliability and Validity in Nonmarket Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 559-582, February.
    15. José L Oviedo & Pablo Campos & Alejandro Caparrós, 2022. "Contingent valuation of landowner demand for forest amenities: application in Andalusia, Spain," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(3), pages 615-643.
    16. Christian A. Vossler & Stéphane Bergeron & Maurice Doyon & Daniel Rondeau, 2023. "Revisiting the Gap between the Willingness to Pay and Willingness to Accept for Public Goods," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 10(2), pages 413-445.
    17. Timothy C. Haab & Matthew G. Interis & Daniel R. Petrolia & John C. Whitehead, 2013. "From Hopeless to Curious? Thoughts on Hausman's "Dubious to Hopeless" Critique of Contingent Valuation," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(4), pages 593-612.
    18. Daniel A. Brent & Lata Gangadharan & Anke Leroux & Paul A. Raschky, 2014. "Putting One's Money Where One's Mouth is: Increasing Saliency in the Field," Monash Economics Working Papers 43-14, Monash University, Department of Economics.
    19. Schlapfer, Felix, 2008. "Contingent valuation: A new perspective," Ecological Economics, Elsevier, vol. 64(4), pages 729-740, February.
    20. Herrera-Araujo, Daniel & Rheinberger, Christoph M. & Hammitt, James K., 2022. "Valuing non-marginal changes in mortality and morbidity risk," Journal of Health Economics, Elsevier, vol. 84(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envval:v:33:y:2024:i:2:p:163-188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.