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Investigating the Characteristics of Stated Preferences for Reducing the Impacts of Air Pollution: A Contingent Valuation Experiment

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Author Info
Ian J. Bateman () (University of East Anglia)
Michael P. Cameron (University of Waikato)
Antreas Tsoumas (University of the Aegean)

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Abstract

This paper investigates the nature of stated preferences for reducing air pollution impacts. Specifically a contingent valuation (CV) experiment is designed to elicit individuals’ values for reducing these impacts and to examine how these may change when multiple schemes for reducing differing impacts are valued. The novel survey design allows simultaneous testing for the presence of several anomalies reported in the CV literature within the same context, including (i) scope sensitivity (ii) part-whole or substitution effects (iii) ordering effects and (iv) visible choice set effects. Results indicate some scope sensitivity and interaction between ordering effects and visible choice set effects, as well as substantial part-whole or substitution effects between two exclusive schemes. A practical consequence of these findings is that estimates of the value of combined programmes may not readily be obtained by summing the values of their constituent parts obtained using the CV method.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0608.pdf
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Publisher Info
Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 06/08.

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Length: 24 pages
Date of creation: 11 May 2006
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Handle: RePEc:wai:econwp:06/08

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Related research
Keywords: air pollution contingent valuation stated preferences part-whole effect experimental surveys

Other versions of this item:

Find related papers by JEL classification:
C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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References listed on IDEAS
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    Other versions:
  10. Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January. [Downloadable!] (restricted)
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  12. Richard T. Carson, 1995. "Contingent Valuation Surveys and Tests of Insensitivity to Scope," University of California at San Diego, Economics Working Paper Series 95-05, Department of Economics, UC San Diego.
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  14. Bateman, Ian J, et al, 1997. "Does Part-Whole Bias Exist? An Experimental Investigation," Economic Journal, Royal Economic Society, vol. 107(441), pages 322-32, March. [Downloadable!] (restricted)
  15. Hanemann, W Michael, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall. [Downloadable!] (restricted)
  16. Bateman, Ian J. & Cole, Matthew & Cooper, Philip & Georgiou, Stavros & Hadley, David & Poe, Gregory L., 2004. "On visible choice sets and scope sensitivity," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 71-93, January. [Downloadable!] (restricted)
  17. Ferraro, Paul J. & Rondeau, Daniel & Poe, Gregory L., 2003. "Detecting other-regarding behavior with virtual players," Journal of Economic Behavior & Organization, Elsevier, vol. 51(1), pages 99-109, May. [Downloadable!] (restricted)
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  20. Bateman, Ian J, et al, 1997. "A Test of the Theory of Reference-Dependent Preferences," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 479-505, May.
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