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Willingness to Pay for Biodiesel in Diesel Engines: A Stochastic Double Bounded Contingent Valuation Survey

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Author Info
Jeanty, P. Wilner
Haab, Tim
Hitzhusen, Fred

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Abstract

The double bounded dichotomous choice format has been proven to improve efficiency in contingent valuation models. However, this format has been criticized due to lack of behavioral and statistical consistencies between the first and the second responses. In this study a split sampling methodology was used to determine whether allowing respondents to express uncertainty in the follow-up question would alleviate such inconsistencies. Results indicate that allowing respondents to express uncertainty in the follow-up question was effective at reducing both types of inconsistencies while efficiency gain is maintained.

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File URL: http://purl.umn.edu/9868
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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN with number 9868.

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Date of creation: 2007
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Handle: RePEc:ags:aaea07:9868

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Related research
Keywords: Biodiesel; diesel; environmental benefits; contingent valuation; willingness to pay; double bounded model; and statistical and behavioral inconsistencies; Demand and Price Analysis; Resource /Energy Economics and Policy; I18; L91; Q42; Q51; Q53;

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