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Is Referendum the Same as Dichotomous Choice Contingent Valuation?

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  • Philippe Polome
  • Anne van der Veen
  • Peter Geurts

Abstract

The NOAA Panel on contingent valuation (Arrow et al. 1993) recommends that the valuation question be cast under the form of a referendum because of incentive properties and familiarity to the respondent. Even though the literature has generally accepted the panel recommendation, it is not clear whether explicitly mentioning a referendum leads to different values than asking a dichotomous (yes/no) question without mentioning any voting process. The results of our specifically designed contingent valuation survey indicate that the estimated willingness to pay is significantly larger when a referendum is explicitly mentioned.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 82 (2006)
Issue (Month): 2 ()
Pages: 174-188

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Handle: RePEc:uwp:landec:v:82:y:2006:i:2:p:174-188

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Web page: http://le.uwpress.org/

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