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Part-Whole Bias in Contingent Valuation: Will Scope Effects Be Detected with Inexpensive Survey Methods?

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  • John C. Whitehead
  • Timothy Haab
  • Ju-Chin Huang

Abstract

The purpose of this paper is to test for scope effects with the contingent valuation method. We use data from a telephone survey focusing on water quality improvements in the Albemarle and Pamlico Sounds in North Carolina. We find that the willingness to pay estimates are sensitive to the scope of the policy. These results suggest that the use of inexpensive survey methods may not be the cause of the failure to detect scope effects in some recent contingent valuation studies.

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Bibliographic Info

Paper provided by East Carolina University, Department of Economics in its series Working Papers with number 9707.

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Handle: RePEc:wop:eacaec:9707

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  1. Trudy Ann Cameron, 1991. "Interval Estimates of Non-Market Resource Values from Referendum Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 67(4), pages 413-421.
  2. Diamond, P., 1993. "Testing the Internal Consistency of Contingent Valuation Surveys," Working papers 93-1, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. John Whitehead & Ju-Chin Huang & Glenn Blomquist & Richard Ready, 1998. "Construct Validity of Dichotomous and Polychotomous Choice Contingent Valuation Questions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(1), pages 107-116, January.
  4. Harrison, Glenn W. & Lesley, James C., 1996. "Must Contingent Valuation Surveys Cost So Much?," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 79-95, July.
  5. Timothy C. Haab & Kenneth E. McConnell, 1998. "Referendum Models and Economic Values: Theoretical, Intuitive, and Practical Bounds on Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 74(2), pages 216-229.
  6. Boyle Kevin J. & Desvousges William H. & Johnson F. Reed & Dunford Richard W. & Hudson Sara P., 1994. "An Investigation of Part-Whole Biases in Contingent-Valuation Studies," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 64-83, July.
  7. Loomis John & Lockwood Michael & DeLacy Terry, 1993. "Some Empirical Evidence on Embedding Effects in Contingent Valuation of Forest Protection," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 45-55, July.
  8. Randall, Alan & Hoehn, John P., 1996. "Embedding in Market Demand Systems," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 369-380, May.
  9. Smith, V. Kerry & Osborne, Laura L., 1996. "Do Contingent Valuation Estimates Pass a "Scope" Test? A Meta-analysis," Journal of Environmental Economics and Management, Elsevier, vol. 31(3), pages 287-301, November.
  10. Haab, Timothy C. & McConnell, Kenneth E., 1997. "Referendum Models and Negative Willingness to Pay: Alternative Solutions," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 251-270, February.
  11. Richard Carson & Robert Mitchell & Michael Hanemann & Raymond Kopp & Stanley Presser & Paul Ruud, 2003. "Contingent Valuation and Lost Passive Use: Damages from the Exxon Valdez Oil Spill," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(3), pages 257-286, July.
  12. Berrens, Robert P. & Ganderton, Philip T. & Silva, Carol L., 1996. "Valuing The Protection Of Minimum Instream Flows In New Mexico," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(02), December.
  13. 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.
  14. Kanninen Barbara J., 1995. "Bias in Discrete Response Contingent Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 114-125, January.
  15. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
  16. John C. Whitehead, 1995. "Willingness to Pay for Quality Improvements: Comparative Statics and Interpretation of Contingent Valuation Results," Land Economics, University of Wisconsin Press, vol. 71(2), pages 207-215.
  17. Fischhoff, Baruch, et al, 1993. " Embedding Effects: Stimulus Representation and Response Mode," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 211-34, June.
  18. Carson Richard T. & Mitchell Robert Cameron, 1995. "Sequencing and Nesting in Contingent Valuation Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 155-173, March.
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Citations

RePEc Biblio mentions

As found on the RePEc Biblio, the curated bibliography for Economics:
  1. > Environmental and Natural Resource Economics > Environmental Economics > Valuation > Contingent valuation method > Scope effects
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Cited by:
  1. John C. Whitehead & Peter A. Groothuis & Rob Southwick, 2007. "Linking Recreation Demand and Willingness to Pay with the Inclusive Value: Valuation of Saginaw Bay Coastal Marsh," Working Papers 07-09, Department of Economics, Appalachian State University.
  2. Barreiro Hurlé, J. & Pérez Y Pérez, L, 2001. "Coste vs. Eficiencia: utilización de entrevistadores no profesionales en valoración contingente," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 18, pages 5-19, Agosto.
  3. Timothy C. Haab & Matthew G. Interis & Daniel R. Petrolia & John C. Whitehead, 2013. "From Hopeless to Curious? Thoughts on Hausman’s “Dubious to Hopeless” Critique of Contingent Valuation," Working Papers 13-07, Department of Economics, Appalachian State University.
  4. Kim, Sooil & Haab, Timothy C., 2005. "Generalized Estimation Methods for Non-i.i.d. Binary Data: An Application to Dichotomous Choice Contingent Valuation," 2005 Annual meeting, July 24-27, Providence, RI 19138, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. John C. Whitehead, 2006. "Improving Willingness to Pay Estimates for Quality Improvements through Joint Estimation with Quality Perceptions," Southern Economic Journal, Southern Economic Association, vol. 73(1), pages 100–111, July.
  6. Christopher Bruce, 2012. "The Use of Collaborative Bargaining in Agricultural Policy-Making," Working Papers 2012-04, Department of Economics, University of Calgary.
  7. Kim, Sooil, 2006. "Bias and Efficiency of Uniform Bid Design in Contingent Valuation," 2006 Annual meeting, July 23-26, Long Beach, CA 21335, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. John Whitehead & Suzanne Finney, 2003. "Willingness to Pay for Submerged Maritime Cultural Resources," Journal of Cultural Economics, Springer, vol. 27(3), pages 231-240, November.
  9. John C. Whitehead & Peter A. Groothuis & Rob Southwick & Pat Foster-Turley, 2006. "Economic Values of Saginaw Bay Coastal Marshes," Working Papers 06-10, Department of Economics, Appalachian State University.

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