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Protest Adjustments in the Valuation of Watershed Restoration Using Payment Card Data

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  • Collins, Alan R.
  • Rosenberger, Randall S.

Abstract

When using a willingness-to-pay (WTP) format in contingent valuation (CV) to value water-shed restoration, respondents may protest by questioning why they should pay to clean up a pollution problem that someone else created. Using a sample selection interval data model based on Bhat (1994) and Brox, Kumar, and Stollery (2003), we found that the decision to protest and WTP values were correlated. Protest sample selection bias resulted in a 300 percent overestimate of mean WTP per respondent. Using different ad hoc treatments of protesters, protest bias resulted in moderate effects (-10 percent to +14 percent) after controlling for sample selection bias.

Suggested Citation

  • Collins, Alan R. & Rosenberger, Randall S., 2007. "Protest Adjustments in the Valuation of Watershed Restoration Using Payment Card Data," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), October.
  • Handle: RePEc:ags:arerjl:44706
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    References listed on IDEAS

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    1. repec:kap:enreec:v:68:y:2017:i:2:d:10.1007_s10640-016-0021-7 is not listed on IDEAS
    2. Brouwer, Roy & Martín-Ortega, Julia, 2012. "Modeling self-censoring of polluter pays protest votes in stated preference research to support resource damage estimations in environmental liability," Resource and Energy Economics, Elsevier, vol. 34(1), pages 151-166.
    3. Khatri-Chhetri, Arun & Collins, Alan R., 2011. "Estimation of a Surface Water Quality Valuation Index for the Appalachian Region," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103653, Agricultural and Applied Economics Association.

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