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Payment Certainty in Discrete Choice Contingent Valuation Responses: Results from a Field Validity Test

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Author Info

  • Christian A. Vossler

    ()
    (Department of Applied Economics and Management, Cornell University)

  • Robert G. Ethier

    ()
    (ISO-New England, Holyoke, MA)

  • Gregory L. Poe

    ()
    (Department of Applied Economics and Management, Cornell University)

  • Michael P. Welsh

    ()
    (Christensen Associates)

Abstract

Two methods for calibrating discrete choice contingent valuation responses—the dichotomous choice with follow-up certainty question method of and the multiple-bounded method of —are evaluated using data from a field validity comparison of hypothetical and actual participation decisions in a green electricity pricing program. Both calibration methods can produce hypothetical participation levels that closely correspond with actual program participation rates. However, the two methods demonstrate procedural variance as they yield significantly different underlying distributions of willingness to pay.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 69 (2003)
Issue (Month): 4 (April)
Pages: 886-902

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Handle: RePEc:sej:ancoec:v:69:4:y:2003:p:886-902

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Citations

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Cited by:
  1. Lars Hultkrantz & Gunnar Lindberg & Camilla Andersson, 2006. "The value of improved road safety," Journal of Risk and Uncertainty, Springer, Springer, vol. 32(2), pages 151-170, March.
  2. Steven B. Caudill & Peter A. Groothuis & John C. Whitehead, 2006. "Testing for Hypothetical Bias in Contingent Valuation Using a Latent Choice Multinomial Logit Model," Working Papers, Department of Economics, Appalachian State University 06-09, Department of Economics, Appalachian State University.
  3. Sund, Björn, 2009. "Certainty calibration in contingent valuation - exploring the within-difference between dichotomous choice and open-ended answers as a certainty measure," Working Papers, Örebro University, School of Business 2009:1, Örebro University, School of Business.
  4. Vossler, Christian A., 2003. "Multiple bounded discrete choice contingent valuation: parametric and nonparametric welfare estimation and a comparison to the payment card," MPRA Paper 38867, University Library of Munich, Germany.
  5. Guo, Xiurui & Liu, Haifeng & Mao, Xianqiang & Jin, Jianjun & Chen, Dongsheng & Cheng, Shuiyuan, 2014. "Willingness to pay for renewable electricity: A contingent valuation study in Beijing, China," Energy Policy, Elsevier, Elsevier, vol. 68(C), pages 340-347.
  6. Simona Bigerna & Carlo Andrea Bollino & Paolo Polinori, 2014. "The Question of Sustainability of Green Electricity Policy Intervention," Sustainability, MDPI, Open Access Journal, vol. 6(8), pages 5378-5400, August.
  7. Bigerna, Simona & Polinori, Paolo, 2014. "Italian households׳ willingness to pay for green electricity," Renewable and Sustainable Energy Reviews, Elsevier, Elsevier, vol. 34(C), pages 110-121.
  8. Nikita Lyssenko & Roberto Martínez-Espi�eira, 2012. "Respondent uncertainty in contingent valuation: the case of whale conservation in Newfoundland and Labrador," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 44(15), pages 1911-1930, May.
  9. Rosenberger, Randall S. & Needham, Mark D. & Morzillo, Anita T. & Moehrke, Caitlin, 2012. "Attitudes, willingness to pay, and stated values for recreation use fees at an urban proximate forest," Journal of Forest Economics, Elsevier, Elsevier, vol. 18(4), pages 271-281.
  10. Ana Bedate & Luis Herrero & José Sanz, 2009. "Economic valuation of a contemporary art museum: correction of hypothetical bias using a certainty question," Journal of Cultural Economics, Springer, Springer, vol. 33(3), pages 185-199, August.
  11. Whitehead, John C. & Cherry, Todd L., 2007. "Willingness to pay for a Green Energy program: A comparison of ex-ante and ex-post hypothetical bias mitigation approaches," Resource and Energy Economics, Elsevier, Elsevier, vol. 29(4), pages 247-261, November.
  12. John C. Whitehead & Todd L. Cherry, 2004. "Mitigating the Hypothetical Bias of Willingness to Pay: A Comparison of Ex-Ante and Ex-Post Approaches," Working Papers, Department of Economics, Appalachian State University 04-21, Department of Economics, Appalachian State University.
  13. Bigerna, Simona & Polinori, Paolo, 2011. "Italian consumers’ willingness to pay for renewable energy sources," MPRA Paper 34408, University Library of Munich, Germany.
  14. Christian Vossler & Michael McKee, 2006. "Induced-Value Tests of Contingent Valuation Elicitation Mechanisms," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 35(2), pages 137-168, October.
  15. Norwood, F. Bailey, 2005. "Can Calibration Reconcile Stated and Observed Preferences?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 37(01), April.
  16. Glenn Blomquist & Karen Blumenschein & Magnus Johannesson, 2009. "Eliciting Willingness to Pay without Bias using Follow-up Certainty Statements: Comparisons between Probably/Definitely and a 10-point Certainty Scale," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 43(4), pages 473-502, August.

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