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Scope effects of respondent uncertainty in contingent valuation: evidence from motorized emission reductions in the city of Nairobi, Kenya

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  • Hilary Ndambiri
  • Eric Mungatana
  • Roy Brouwer

Abstract

This study analyzed the scope effects of respondent uncertainty in contingent valuation (CV) by evaluating whether willingness to pay (WTP) estimates were sensitive to changes in the magnitudes of motorized emission reductions in the city of Nairobi, Kenya. The WTP estimates were elicited through the conventional payment card (PC), stochastic payment card (SPC) and the polychotomous payment card (PPC) formats. While SPC and PPC formats were used to capture respondent uncertainty, the PC format captured respondent certainty regarding the amounts individuals were WTP for emission reductions. Based on parametric and nonparametric analysis, results show that certain (PC) respondents stated significantly larger WTP amounts for larger emission reductions than for smaller reductions. Conversely, uncertain (SPC and PPC) respondents stated smaller amounts for larger emission reductions than certain (PC) respondents. The implication is that though respondents were sensitive to the scope of motorized emission reductions, respondent uncertainty lowered their sensitivity to scope.

Suggested Citation

  • Hilary Ndambiri & Eric Mungatana & Roy Brouwer, 2017. "Scope effects of respondent uncertainty in contingent valuation: evidence from motorized emission reductions in the city of Nairobi, Kenya," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(1), pages 22-46, January.
    • Handle: RePEc:taf:jenpmg:v:60:y:2017:i:1:p:22-46
    DOI: 10.1080/09640568.2016.1140024
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    References listed on IDEAS

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    1. John C. Whitehead & William B. Clifford & Thomas J. Hoban, 2000. "“WTP for Research and Extension Programs: Divergent Validity of Contingent Valuation with Single and Multiple Bound Valuation Questions,”," Working Papers 0002, East Carolina University, Department of Economics.
    2. 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 2009:1, Örebro University, School of Business.
    3. Dominguez-Torreiro, Marcos & Solino, Mario, 2011. "Uncertainty in Individuals' Preferences for Non-commodity Outputs Provided by Rural Development Programs (RDPs): A Contingent Valuation Approach," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114437, European Association of Agricultural Economists.
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