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Calibration of Stated Willingness to Pay for Public Goods with Voting and Tax Liability Data: Provision of Landscape Amenities in Switzerland

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  • Nick Hanley
  • Felix Schlapfer

Abstract

Controversy remains over the degree of hypothetical bias in contingent valutation method (CVM) estimates of values for public goods, especially for public goods with significant passive-use values. This paper uses an 'indifferent voter' approach to calibrate stated WTP for a proposed public good increase with actual WTP implied by voting and tax liability data. Our data are from a CVM survey and an actual voting decision on propositions to increase public funds for landscape amenities protection in the canton of Zurich, Switzerland.

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Bibliographic Info

Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2002_2.

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Handle: RePEc:gla:glaewp:2002_2

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Keywords: contingent valuation; indifferent voter; median voter theorem; referendum; valuation;

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References

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  2. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
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  5. Carson, Richard T. & Flores, Nicholas E. & Martin, Kerry M. & Wright, Jennifer L., 1995. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148793, Australian Agricultural and Resource Economics Society.
  6. Fox, John A. & Shogren, J. & Hayes, Dermot J. & Kliebenstein, James, 2003. "Cvm-X: Calibrating Contingent Values with Experimental Auction Markets," Staff General Research Papers 11935, Iowa State University, Department of Economics.
  7. Fischel, William A., 1979. "Determinants of voting on environmental quality: A study of a New Hampshire pulp mill referendum," Journal of Environmental Economics and Management, Elsevier, vol. 6(2), pages 107-118, June.
  8. Nick Hanley & Felix Schlapfer, . "A Method to Estimate the Magnitude of "Hypothetical Bias" in Stated Preference Surveys of Passive-use Value," Working Papers 2002_1, Business School - Economics, University of Glasgow.
  9. Khan, M. & Matsusaka, J.G., 1995. "Demand for Environment Goods: Evidence from Voting Patterns on California Initiatives," Discussion Papers 1995_08, Columbia University, Department of Economics.
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  12. Frykblom, Peter, 1997. "Hypothetical Question Modes and Real Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 275-287, November.
  13. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
  14. Ethier, Robert G. & Poe, Gregory L. & Schulze, William D. & Clark, Jeremy, 1997. "A Comparison Of Hypothetical Phone And Mail Contingent Valuation Responses For Green Pricing Electricity Programs," Working Papers 7245, Cornell University, Department of Applied Economics and Management.
  15. Cummings, Ronald G, et al, 1997. "Are Hypothetical Referenda Incentive Compatible?," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 609-21, June.
  16. Nick Hanley & Felix Schlapfer, . "What determines the demand for programmes providing local environmental public goods," Working Papers 2001_7, Business School - Economics, University of Glasgow.
  17. John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1996. "Improving Validity Experiments of Contingent Valuation Methods: Results of Efforts to Reduce the Disparity of Hypothetical and Actual Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 72(4), pages 450-461.
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  19. Cummings, Ronald G & Harrison, Glenn W & Rutstrom, E Elisabet, 1995. "Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible?," American Economic Review, American Economic Association, vol. 85(1), pages 260-66, March.
  20. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
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Cited by:
  1. Nick Hanley & Felix Schlapfer, . "A Method to Estimate the Magnitude of "Hypothetical Bias" in Stated Preference Surveys of Passive-use Value," Working Papers 2002_1, Business School - Economics, University of Glasgow.

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