Dealing with ignored attributes in choice experiments on valuation of Sweden’s environmental quality objectives
AbstractIn this paper we use follow-up questions to investigate whether attributes have been ignored in a choice experiment on environmental goods. This information is subsequently used in the estimation of the model by restricting the individual parameters for the ignored attributes to zero. We then separately estimate the marginal willingness to pay (WTP) for the whole sample and for those who took all attributes into account. We find no significant differences in mean marginal WTP between these two models. However, when taking the shares of respondents who considered both the environmental and the cost attributes (52 -69 percent of the respondents) into account, then the marginal WTPs for each attribute change if the respondents who ignored the attributes have a zero WTP. Hence, not taking into account whether respondents have considered the attribute could give biased welfare estimates and wrong policy implications. We also investigate whether any socioeconomic characteristics can explain who ignores attributes, and find that very few of the variables are significant, indicating that we can only partly explain the behavior.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 289.
Length: 35 pages
Date of creation: 20 Feb 2008
Date of revision: 01 Mar 2009
Publication status: Published in Environmental and Resource Economics, 2010, pages 65-89.
Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Choice experiment; WTP; ignoring attributes; follow-up question; environmental quality objectives;
Other versions of this item:
- Fredrik Carlsson & Mitesh Kataria & Elina Lampi, 2010. "Dealing with Ignored Attributes in Choice Experiments on Valuation of Sweden’s Environmental Quality Objectives," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 47(1), pages 65-89, September.
- Fredrik Carlsson & Mitesh Kataria & Elina Lampi, 2009. "Dealing with ignored attributes in choice experiments on valuation of Sweden's environmental quality objectives," Jena Economic Research Papers 2009-089, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-23 (All new papers)
- NEP-CBE-2008-02-23 (Cognitive & Behavioural Economics)
- NEP-DCM-2008-02-23 (Discrete Choice Models)
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