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Willingness to Pay Estimation When Protest Beliefs are not Separable from the Public Good Definition

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Author Info

  • Kimberly Rollins

    ()
    (Department of Resource Economics, University of Nevada, Reno)

  • M.D.R. Evans

    ()
    (Department of Resource Economics and Department of Sociology, University of Nevada, Reno)

  • Mimako Kobayashi

    ()
    (Department of Resource Economics, University of Nevada, Reno)

  • Anita Castledine

    (Department of Resource Economics, University of Nevada, Reno)

Abstract

Public good attributes that are correlated with protest beliefs but not separable from the good's value, would affect stated preference estimates of the WTP for the public good. Survey data collected to value a program to prevent ecosystem losses on Nevada rangelands, where the majority of land is publicly owned and managed, reveal more than half of the respondents exhibiting some protest belief. Of these, about 60% voted 'yes' to some nonzero bid amount. By treating protest beliefs and opposition to the proposed program as separate concepts, we systematically analyze their determinants and impacts on WTP. In this framework, people with protest beliefs may or may not vote 'no' to all bids and people may, without being protesters, answer 'no' to all dollar amounts. Multinomial logit regression results suggest that factors motivating people to protest and/or oppose the proposed program are so diverse that a single model does not provide a good fit. We estimate nested models and conclude that different underlying processes determine WTP for "protesters" ($34.02) and "non-protesters" ($69.56).

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File URL: http://www.coba.unr.edu/econ/wp/papers/UNRECONWP10002.pdf
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Bibliographic Info

Paper provided by University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics in its series Working Papers with number 10-002.

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Length: 31 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:unr:wpaper:10-002

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Related research

Keywords: Stated preferences; Willingness to pay; Protest responses; Rangelands; Valuation of ecosystem services;

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