Actual averting expenditure versus stated willingness to pay
AbstractThe purpose of this study is to perform a complete comparison of actual averting expenditure and stated willingness to pay measures, and to determine if the averting expenditure is a lower bound of the willingness to pay measured from contingent valuation experiment as suggested by literature. In addition to the single value comparison, Bootstrap, Krinsky and Robb, Jackknife, and Cameron are four simulation methods used to calculate confidence intervals for response function. Sample sizes of 100, 200, and 1000 are simulated 100 and 200 times respectively. A set of data with 540 households from a contingent policy referendum survey is employed for our purpose. Under a specific level of BOD improvement, a one-to-one single mean value comparison of the actual averting expenditure is greater than the mean willingness to pay from utility difference model. The empirical results are consistent with the theoretical expectation for expenditure difference that averting expenditure is a lower bound of willingness to pay generated from the contingent valuation method. A confidence interval, which contains the true mean willingness to pay at least 90% of the times, includes the actual averting expenditure as a lower bound of the mean willingness to pay as theory predicts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 33 (2001)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Urama, Kevin C. & Hodge, Ian D., 2006. "Are stated preferences convergent with revealed preferences? Empirical evidence from Nigeria," Ecological Economics, Elsevier, vol. 59(1), pages 24-37, August.
- Bernal García, Juan Jesús & Martínez Maria-Dolores, Soledad María & Sánchez García, Juan Francisco, 2006. "Study of the potentiality of the electronic commerce in the Region of Murcia by means of a model of logistic regression/Estudio de la Potencialidad del Comercio Electrónico en la Región de Murcia me," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 24, pages 499-529, Abril.
- M. R. Bhatia & J. A. Fox-Rushby, 2003. "Validity of Willingness to Pay: hypothetical versus actual payment," Applied Economics Letters, Taylor & Francis Journals, vol. 10(12), pages 737-740.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.