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Modelling zero values and protest responses in contingent valuation surveys

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  • Elisabetta Strazzera
  • Riccardo Scarpa
  • Pinuccia Calia
  • Guy Garrod
  • Kenneth Willis

Abstract

In contingent valuation surveys the category of zero bidders refers to individuals that are not willing to pay anything for the programme under analysis. Specific questions can help to identify true zero values, coming from people that are indifferent to the programme, separately from protest responses: the latter are generally excluded from the analysis. This paper introduces a mixture-sample selection model that takes into account both zero values and protest responses in the estimates. The model is applied to the valuation of a traffic calming scheme aimed at reducing risks for residents in three villages in the north-east of England.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 2 ()
Pages: 133-138

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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:133-138

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References

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  1. An, Mark Y. & Roberto Ayala, 1995. "A Mixture Model of Willingness to Pay Distributions," Working Papers 95-21, Duke University, Department of Economics.
  2. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
  3. Trudy Ann Cameron, 1991. "Interval Estimates of Non-Market Resource Values from Referendum Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 67(4), pages 413-421.
  4. Bengt Kristr�m, 1997. "Spike Models in Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1013-1023.
  5. P. Calia & E. Strazzera, 1999. "A Sample Selection Model for Protest Non-Response Votes in Contingent Valuation Analyses," Working Paper CRENoS 199905, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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Cited by:
  1. Neil Powe & Kenneth Willis & Guy Garrod, 2006. "Difficulties in valuing street light improvement: trust, surprise and bound effects," Applied Economics, Taylor & Francis Journals, vol. 38(4), pages 371-381.
  2. John Whitehead, 2006. "A comparison of contingent valuation method and random utility model estimates of the value of avoiding reductions in king mackerel bag limits," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1725-1735.
  3. Elisabetta Strazzera & Margarita Genius, 2004. "The Copula Approach to Sample Selection Modelling: An Application to the Recreational Value of Forests," Working Papers 2004.73, Fondazione Eni Enrico Mattei.
  4. Collins, Alan R. & Rosenberger, Randall S., 2007. "Protest Adjustments in the Valuation of Watershed Restoration Using Payment Card Data," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), October.
  5. 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.
  6. Stithou, Mavra, 2009. "Respondent Certainty and Payment Vehicle Effect in Contingent Valuation: an Empirical Study for the Conservation of Two Endangered Species in Zakynthos Island, Greece," Stirling Economics Discussion Papers 2009-21, University of Stirling, Division of Economics.
  7. Elisabetta Strazzera & Margarita Genius & Riccardo Scarpa & George Hutchinson, 2003. "The Effect of Protest Votes on the Estimates of WTP for Use Values of Recreational Sites," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(4), pages 461-476, August.
  8. Giles Atkinson & Sian Morse-Jones & Susana Mourato & Allan Provins, 2012. "‘When to Take “No” for an Answer’? Using Entreaties to Reduce Protests in Contingent Valuation Studies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(4), pages 497-523, April.
  9. Paulo Nunes & Jeroen van den Bergh, 2004. "Can People Value Protection against Invasive Marine Species? Evidence from a Joint TC–CV Survey in the Netherlands," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(4), pages 517-532, August.
  10. Nathalie Havet & Magali Morelle & Alexis Penot & Raphaël Remonnay, 2012. "The information content of the WTP-WTA gap: An empirical analysis among severely ill patients," Working Papers 1213, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  11. Maria Ana Odejar & Kostas Mavromaras & Mandy Ryan, 2004. "Messy Data Modelling in Health Care Contingent Valuation Studies," Econometric Society 2004 North American Summer Meetings 406, Econometric Society.
  12. Kaneko, Naoya & Chern, Wen S., 2006. "Identification of Consumer Segments and Its Implication on the Willingness-to-Pay Distribution: The Case of Demand for Non-Genetically Modified Vegetable Oil in the United States," 2006 Annual meeting, July 23-26, Long Beach, CA 21194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  13. Brouwer, Roy & Martín-Ortega, Julia, 2012. "Modeling self-censoring of polluter pays protest votes in stated preference research to support resource damage estimations in environmental liability," Resource and Energy Economics, Elsevier, vol. 34(1), pages 151-166.
  14. Hu, Wuyang, 2006. "Use of Spike Models in Measuring Consumers' Willingness to Pay for Non-GM Oil," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(03), December.
  15. Jean-Claude Thill & Chunhua Wang, 2011. "Understanding Willingness to Support Higher Taxes for Urban Transportation Services: The Case of an American City," ERSA conference papers ersa11p1449, European Regional Science Association.
  16. Genius, Margarita & Strazzera, Elisabetta, 2011. "Can unbiased be tighter? Assessment of methods to reduce the bias-variance trade-off in WTP estimation," Resource and Energy Economics, Elsevier, vol. 33(1), pages 293-314, January.
  17. Cho, Seong-Hoon & Yen, Steven T. & Bowker, James Michael & Newman, David H., 2008. "Modeling Willingness to Pay for Land Conservation Easements: Treatment of Zero and Protest Bids and Application and Policy Implications," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April.
  18. repec:sep:wpaper:3_320 is not listed on IDEAS
  19. Annunziata Vita, 2012. "La Valutazione Economica Dei Parchi Marini. Il Caso “Punta Infreschi”," Working Papers 3_220, Dipartimento di Scienze Economiche e Statistiche, Università degli Studi di Salerno.
  20. Nathalie Havet & Magali Morelle & Raphaël Remonnay & Marie-Odile Carrere, 2012. "Cancer patients’ willingness to pay for blood transfusions at home: results from a contingent valuation study in a French cancer network," The European Journal of Health Economics, Springer, vol. 13(3), pages 289-300, June.
  21. Madureira, Lívia & Nunes, Luis C. & Borges, José G. & Falcão, André O., 2011. "Assessing forest management strategies using a contingent valuation approach and advanced visualisation techniques: A Portuguese case study," Journal of Forest Economics, Elsevier, vol. 17(4), pages 399-414.
  22. William Fonta & Hyacinth Ichoku & Kanayo Ogujiuba, 2010. "Estimating willingness to pay with the stochastic payment card design: further evidence from rural Cameroon," Environment, Development and Sustainability, Springer, vol. 12(2), pages 179-193, April.
  23. William Fonta & H. Ichoku & Jane Kabubo-Mariara, 2010. "The effect of protest zeros on estimates of willingness to pay in healthcare contingent valuation analysis," Applied Health Economics and Health Policy, Springer, vol. 8(4), pages 225-237, July.
  24. David Hoyos & Petr Mariel, 2010. "Contingent Valuation: Past, Present and Future," Prague Economic Papers, University of Economics, Prague, vol. 2010(4), pages 329-343.

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