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Do CVM Welfare Estimates Suffer from On-Site Sampling Bias? A Comparison of On-Site and Household Visitor Surveys

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  • Gonzalez-Sepulveda, Juan Marcos
  • Loomis, John B.

Abstract

The problem of endogenous stratification associated with on-site sampling has been overlooked in the Contingent Valuation Method (CVM). We find that using on-site samples of visitors overstates visitor willingness to pay (WTP) estimates relative to a household sample of visitors, and substantially overstates the unconditional population values. We provide two methods of correcting WTP of on-site samples. The uncorrected on-site sample CVM yields WTP of $132 per trip, while visitor WTP obtained from a random sample of households had a value of $66 per trip. Adaptation of choice-based sampling correction estimator to the on-site CVM data yields $73 per trip, not statistically different from the visitor value from the household survey, but significantly different from the uncorrected on-site sample value.

Suggested Citation

  • Gonzalez-Sepulveda, Juan Marcos & Loomis, John B., 2010. "Do CVM Welfare Estimates Suffer from On-Site Sampling Bias? A Comparison of On-Site and Household Visitor Surveys," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 39(3), pages 1-10, October.
    • Handle: RePEc:ags:arerjl:95610
    DOI: 10.22004/ag.econ.95610
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    Cited by:

    1. Kim, Ju-Yeon & Mjelde, James W. & Kim, Tae-Kyun & Lee, Choong-Ki & Ahn, Kyung-Mo, 2012. "Comparing willingness-to-pay between residents and non-residents when correcting hypothetical bias: Case of endangered spotted seal in South Korea," Ecological Economics, Elsevier, vol. 78(C), pages 123-131.
    2. Slee, William & Thomson, Kenneth J., 2011. "Rural development policy and the provision of public goods: challenges for evaluation," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99601, European Association of Agricultural Economists.
    3. Henry-Osorio, Miguel & Mittelhammer, Ronald C., 2012. "An Information-Theoretic Approach to Modeling Binary Choices: Estimating Willingness to Pay for Recreation Site Attributes," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123432, Agricultural and Applied Economics Association.
    4. Yusuph J. Kulindwa, 2016. "Key factors that influence households’ tree planting behaviour," Natural Resources Forum, Blackwell Publishing, vol. 40(1-2), pages 37-50, February.
    5. Farr, Marina & Stoeckl, Natalie & Sutton, Stephen, 2014. "Recreational fishing and boating: Are the determinants the same?," Marine Policy, Elsevier, vol. 47(C), pages 126-137.

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    Keywords

    Environmental Economics and Policy;

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