Advanced Search
MyIDEAS: Login to save this paper or follow this series

Contingent Valuation of Community Forestry Programs in Ethiopia: Observing Preference Anomalies in Double-Bounded CVM

Contents:

Author Info

  • Dambala Gelo

    ()
    (Department of Economics, University of Pretoria)

  • Steven F. Koch

    ()
    (Department of Economics, University of Pretoria)

Abstract

This study examines the potential for anomalous response behaviour effects within the context of double-bounded contingent valuation methods applied to community forestry programs in rural Ethiopia. Anomalous responses considered include shift effects, framing effects and anchoring effects, and these effects are considered within a double-bounded contingent valuation study. The results confirmed the presence of incentive incompatibility and framing effects. However, anchoring effects are not uncovered. After controlling for these biases, the community forestry program considered is shown to offer a welfare gain ranging from Ethiopian Birr (ETB) 20.14 to 22.80. In addition to these welfare benefits, the results raise questions with respect to the validity of previous welfare estimates associated with double-bounded CVM studies in developing countries, suggesting that future studies should control for incentive incompatibility and framing effects bias.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://econrsa.org/home/index.php?option=com_docman&task=doc_download&gid=415&Itemid=67
Download Restriction: no

Bibliographic Info

Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 201124.

as in new window
Length: 33 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:pre:wpaper:201124

Contact details of provider:
Postal: PRETORIA, 0002
Phone: (+2712) 420 2413
Fax: (+2712) 362-5207
Web page: http://web.up.ac.za/default.asp?ipkCategoryID=677
More information through EDIRC

Related research

Keywords: Double-bounded CVM; incentive incompatibility bias; anchoring bias;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Davis, George C. & Kim, Sung-Yong, 2002. "Measuring instrument relevance in the single endogenous regressor-multiple instrument case: a simplifying procedure," Economics Letters, Elsevier, Elsevier, vol. 74(3), pages 321-325, February.
  2. Cropper, Maureen L. & Haile, Mitiku & Lampietti, Julian & Poulos, Christine & Whittington, Dale, 2004. "The demand for a malaria vaccine: evidence from Ethiopia," Journal of Development Economics, Elsevier, Elsevier, vol. 75(1), pages 303-318, October.
  3. Gelo, Dambala & Koch, Steven F., 2012. "Does one size fit all? Heterogeneity in the valuation of community forestry programs," Ecological Economics, Elsevier, Elsevier, vol. 74(C), pages 85-94.
  4. Gebremedhin, Berhanu & Pender, John & Tesfay, Girmay, 2003. "Community natural resource management: the case of woodlots in Northern Ethiopia," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 8(01), pages 129-148, February.
  5. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 8(4), pages 19-43, Fall.
  6. Emmanuel Flachaire & Guillaume Hollard, 2005. "Controlling starting-point bias in double-bounded contingent valuation surveys," Cahiers de la Maison des Sciences Economiques, Université Panthéon-Sorbonne (Paris 1) v05076, Université Panthéon-Sorbonne (Paris 1).
  7. Whittington, Dale & Lauria, Donald T. & Choe, Kyeongae & Hughes, Jeffrey A. & Swarna, Venkateswarlu & Wright, Albert M., 1993. "Household sanitation in Kumasi, Ghana: A description of current practices, attitudes, and perceptions," World Development, Elsevier, Elsevier, vol. 21(5), pages 733-748, May.
  8. Whittington, Dale, et al, 1990. "Estimating the Willingness to Pay for Water Services in Developing Countries: A Case Study of the Use of Contingent Valuation Surveys in Southern Haiti," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 38(2), pages 293-311, January.
  9. John C. Whitehead, 2002. "Incentive Incompatibility and Starting-Point Bias in Iterative Valuation Questions," Land Economics, University of Wisconsin Press, vol. 78(2), pages 285-297.
  10. K hlin, Gunnar, 2001. "Contingent valuation in project planning and evaluation: the case of social forestry in Orissa, India," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 6(02), pages 237-258, May.
  11. Alberini Anna, 1995. "Efficiency vs Bias of Willingness-to-Pay Estimates: Bivariate and Interval-Data Models," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 169-180, September.
  12. John Shea, 1996. "Instrument Relevance in Multivariate Linear Models: A Simple Measure," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0193, National Bureau of Economic Research, Inc.
  13. Herriges, Joseph A. & Shogren, Jason F., 1996. "Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 112-131, January.
  14. Yu-Lan Chien & Cliff J. Huang & Daigee Shaw, 2004. "A General Model of Starting Point Bias in Double-Bounded Dichotomous Contingent Valuation Surveys," IEAS Working Paper : academic research, Institute of Economics, Academia Sinica, Taipei, Taiwan 04-A008, Institute of Economics, Academia Sinica, Taipei, Taiwan.
  15. Trudy Ann Cameron & John Quiggin, 1992. "Estimation Using Contingent Valuation Data From a "Dichotomous Choice with Follow-Up" Questionnaire," UCLA Economics Working Papers, UCLA Department of Economics 653, UCLA Department of Economics.
  16. Sattout, E.J. & Talhouk, S.N. & Caligari, P.D.S., 2007. "Economic value of cedar relics in Lebanon: An application of contingent valuation method for conservation," Ecological Economics, Elsevier, Elsevier, vol. 61(2-3), pages 315-322, March.
  17. Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
  18. Shyamsundar, Priya & Kramer, Randall A., 1996. "Tropical Forest Protection: An Empirical Analysis of the Costs Borne by Local People," Journal of Environmental Economics and Management, Elsevier, vol. 31(2), pages 129-144, September.
  19. Mekonnen, Alemu, 2000. "Valuation of community forestry in Ethiopia: a contingent valuation study of rural households," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 5(03), pages 289-308, July.
  20. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195060119, October.
  21. DeShazo, J. R., 2002. "Designing Transactions without Framing Effects in Iterative Question Formats," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 360-385, May.
  22. Andersson, Camilla & Mekonnen, Alemu & Stage, Jesper, 2009. "Impacts of the Productive Safety Net Program in Ethiopia on Livestock and Tree Holdings of Rural Households," Discussion Papers, Resources For the Future dp-09-05-efd, Resources For the Future.
  23. Carlsson, Fredrik & Köhlin, Gunnar & Mekonnen, Alemu, 2004. "Contingent valuation of community plantations in Ethiopia: a look into value elicitation formats and intra-household preference variations," Working Papers in Economics, University of Gothenburg, Department of Economics 151, University of Gothenburg, Department of Economics.
  24. Navrud, StAle & Mungatana, E. D., 1994. "Environmental valuation in developing countries: The recreational value of wildlife viewing," Ecological Economics, Elsevier, Elsevier, vol. 11(2), pages 135-151, November.
  25. repec:hal:journl:halshs-00196431 is not listed on IDEAS
  26. Watson, Verity & Ryan, Mandy, 2007. "Exploring preference anomalies in double bounded contingent valuation," Journal of Health Economics, Elsevier, Elsevier, vol. 26(3), pages 463-482, May.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pre:wpaper:201124. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rangan Gupta).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.