IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v46y1995i1p97-112.html
   My bibliography  Save this article

Measuring Non‐Use Value Of Environmental Goods Using The Contingent Valuation Method: Problems Of Information And Cognition And The Application Of Cognitive Questionnaire Design Methods

Author

Listed:
  • W. George Hutchinson
  • Susan M. Chilton
  • John Davis

Abstract

Much interest now focuses on the use of the Contingent Valuation Method (CVM) to assess non‐use value of environmental goods. The paper reviews recent literature and highlights particular problems of information provision and respondent knowledge, comprehension and cognition. These must be dealt with by economists in designing CVM surveys for eliciting non‐use values. Cognitive Questionnaire Design Methods are presented which invoke concepts from psychology and tools from cognitive survey design (focus groups and verbal reports) to reduce a complex environmental good into a meaningful commodity that can be valued by respondents in a contingent market. This process is illustrated with examples from the authors' own research valuing alternative afforestation programmes.

Suggested Citation

  • W. George Hutchinson & Susan M. Chilton & John Davis, 1995. "Measuring Non‐Use Value Of Environmental Goods Using The Contingent Valuation Method: Problems Of Information And Cognition And The Application Of Cognitive Questionnaire Design Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 97-112, January.
    • Handle: RePEc:bla:jageco:v:46:y:1995:i:1:p:97-112
    DOI: 10.1111/j.1477-9552.1995.tb00755.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1477-9552.1995.tb00755.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1477-9552.1995.tb00755.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bohm, Peter, 1972. "Estimating demand for public goods: An experiment," European Economic Review, Elsevier, vol. 3(2), pages 111-130.
    2. John C. Bergstrom & John R. Stoll & Alan Randall, 1990. "The Impact of Information on Environmental Commodity Valuation Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 614-621.
    3. Hoehn, John P & Randall, Alan, 1989. "Too Many Proposals Pass the Benefit Cost Test," American Economic Review, American Economic Association, vol. 79(3), pages 544-551, June.
    4. J. M. Bowker & John R. Stoll, 1988. "Use of Dichotomous Choice Nonmarket Methods to Value the Whooping Crane Resource," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 372-381.
    5. Bennett, Jeffrey W., 1984. "Using Direct Questioning To Value The Existence Benefits Of Preserved Natural Areas," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 28(2-3), pages 1-17, August.
    6. William D. Schulze & Ralph C. d'Arge & David S. Brookshire, 1981. "Valuing Environmental Commodities: Some Recent Experiments," Land Economics, University of Wisconsin Press, vol. 57(2), pages 151-172.
    7. Peter Bohm, 1972. "Estimating the demand for public goods: An experiment," Framed Field Experiments 00126, The Field Experiments Website.
    8. John P. Hoehn, 1991. "Valuing the Multidimensional Impacts of Environmental Policy: Theory and Methods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 289-299.
    9. 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.
    10. John C. Bergstrom & John R. Stoll & Alan Randall, 1989. "Information Effects in Contingent Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 685-691.
    11. Nick Hanley & Alistair Munro, "undated". "The Effects of Information in Contingent Markets for Enviromental Goods," Working Papers Series e94/5, University of Stirling, Division of Economics.
    12. J. Davis & C. O'Neill, 1992. "Discrete‐Choice Valuation Of Recreational Angling In Northern Ireland," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 452-457, September.
    13. Brown, G. & Layton, D. & Lazo, J., 1994. "Valuing Habitat and Endangered Species," Working Papers 94-1, University of Washington, Department of Economics.
    14. Jeffrey K. Lazo & William D. Schulze & Gary H. McClelland & James K. Doyle, 1992. "Can Contingent Valuation Measure Nonuse Values?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1126-1132.
    15. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    16. Brown, G. & Layton, D. & Lazo, J., 1994. "Valuing Habitat and Endangered Species," Discussion Papers in Economics at the University of Washington 94-1, Department of Economics at the University of Washington.
    17. Karl C. Samples & John A. Dixon & KMarcia M. Gowen, 1986. "Information Disclosure and Endangered Species Valuation," Land Economics, University of Wisconsin Press, vol. 62(3), pages 306-312.
    18. Gregory, Robin & Lichtenstein, Sarah & Slovic, Paul, 1993. "Valuing Environmental Resources: A Constructive Approach," Journal of Risk and Uncertainty, Springer, vol. 7(2), pages 177-197, October.
    19. Harrison, Glenn W., 1992. "Valuing public goods with the contingent valuation method: A critique of kahneman and knetsch," Journal of Environmental Economics and Management, Elsevier, vol. 23(3), pages 248-257, November.
    20. Smith, V. Kerry, 1992. "Arbitrary values, good causes, and premature verdicts," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 71-89, January.
    21. Kealy, Mary Jo & Montgomery, Mark & Dovidio, John F., 1990. "Reliability and predictive validity of contingent values: Does the nature of the good matter?," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 244-263, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kevin C. Urama & Ian Hodge, 2006. "Participatory Environmental Education and Willingness to Pay for River Basin Management: Empirical Evidence from Nigeria," Land Economics, University of Wisconsin Press, vol. 82(4), pages 542-561.
    2. Michael Ahlheim & Benchaphun Ekasingh & Oliver Frör & Jirawan Kitchaicharoen & Andreas Neef & Chapika Sangkapitux & Nopasom Sinphurmsukskul, 2008. "Better than their reputation - A case for mail surveys in contingent valuation," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 297/2008, Department of Economics, University of Hohenheim, Germany.
    3. Thanh Mai Ha & Shamim Shakur & Kim Hang Pham Do, 2018. "Regional differences in willingness to pay for organic vegetables in Vietnam," Discussion Papers 1808, School of Economics and Finance, Massey University, New Zealand.
    4. Jacquelin Burgess & Judy Clark & Carolyn Harrison, 2000. "Culture, Communication, and the Information Problem in Contingent Valuation Surveys: A Case Study of a Wildlife Enhancement Scheme," Environment and Planning C, , vol. 18(5), pages 505-524, October.
    5. Mann, Stefan, 2003. "Die Expertenbewertung als Alternative zur Kontingenzbewertung," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(08), pages 1-8.
    6. Chilton, S. M. & Hutchinson, W. G., 2000. "A note on the warm glow of giving and scope sensitivity in contingent valuation studies," Journal of Economic Psychology, Elsevier, vol. 21(4), pages 343-349, August.
    7. MacMillan, Douglas & Hanley, Nick & Lienhoop, Nele, 2006. "Contingent valuation: Environmental polling or preference engine?," Ecological Economics, Elsevier, vol. 60(1), pages 299-307, November.
    8. Richard D. Smith, 2008. "Contingent valuation in health care: does it matter how the ‘good’ is described?," Health Economics, John Wiley & Sons, Ltd., vol. 17(5), pages 607-617, May.
    9. Frör, Oliver, 2008. "Bounded rationality in contingent valuation: Empirical evidence using cognitive psychology," Ecological Economics, Elsevier, vol. 68(1-2), pages 570-581, December.
    10. Michael Kaplowitz, 2000. "Identifying ecosystem services using multiple methods: Lessons from the mangrove wetlands of Yucatan, Mexico," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 17(2), pages 169-179, June.
    11. Kuo-Cheng Hsu, 2020. "House Prices in the Peripheries of Mass Rapid Transit Stations Using the Contingent Valuation Method," Sustainability, MDPI, vol. 12(20), pages 1-21, October.
    12. Kaplowitz, Michael D. & Hoehn, John P., 2001. "Do focus groups and individual interviews reveal the same information for natural resource valuation?," Ecological Economics, Elsevier, vol. 36(2), pages 237-247, February.
    13. Clark, Judy & Burgess, Jacquelin & Harrison, Carolyn M., 2000. ""I struggled with this money business": respondents' perspectives on contingent valuation," Ecological Economics, Elsevier, vol. 33(1), pages 45-62, April.
    14. Svedsater, Henrik, 2000. "Contingent valuation of global environmental resources: Test of perfect and regular embedding," Journal of Economic Psychology, Elsevier, vol. 21(6), pages 605-623, December.
    15. Michael Ahlheim & Benchaphun Ekasingh & Oliver Frör & Jirawan Kitchaincharoen & Andreas Neef & Chapika Sangkapitux & Nopasom Sinphurmsukskul, 2007. "Using Citizen Expert Groups in Environmental Valuation - Lessons from a CVM study in Northern Thailand," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 283/2007, Department of Economics, University of Hohenheim, Germany.
    16. Catherine Heyes & Anthony Heyes, 1999. "Willingness to Pay Versus Willingness to Travel: Assessing the Recreational Benefits from Dartmoor National Park," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 124-139, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Veisten, Knut, 2007. "Contingent valuation controversies: Philosophic debates about economic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 204-232, April.
    2. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    3. Blamey, Russell K., 1998. "Decisiveness, attitude expression and symbolic responses in contingent valuation surveys," Journal of Economic Behavior & Organization, Elsevier, vol. 34(4), pages 577-601, March.
    4. Vivien Foster & Ian J. Bateman & David Harley, 1997. "Real And Hypothetical Willingness To Pay For Environmental Preservation: A Non‐Experimental Comparison," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 123-137, January.
    5. Schulze, William D. & McClelland, Gary H. & Lazo, Jeffrey K. & Rowe, Robert D., 1998. "Embedding and calibration in measuring non-use values," Resource and Energy Economics, Elsevier, vol. 20(2), pages 163-178, June.
    6. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    7. Richard Carson & Nicholas Flores & Norman Meade, 2001. "Contingent Valuation: Controversies and Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
    8. Hoehn, John P. & Randall, Alan, 2002. "The effect of resource quality information on resource injury perceptions and contingent values," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 13-31, February.
    9. Schlapfer, Felix, 2008. "Contingent valuation: A new perspective," Ecological Economics, Elsevier, vol. 64(4), pages 729-740, February.
    10. Trine Hansen, 1997. "The Willingness-to-Pay for the Royal Theatre in Copenhagen as a Public Good," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 21(1), pages 1-28, March.
    11. Halkos, George, 2012. "The use of contingent valuation in assessing marine and coastal ecosystems’ water quality: A review," MPRA Paper 42183, University Library of Munich, Germany.
    12. Shogren, Jason F., 2006. "Experimental Methods and Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 19, pages 969-1027, Elsevier.
    13. Richard T. Carson & Miko_aj Czajkowski, 2014. "The discrete choice experiment approach to environmental contingent valuation," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 9, pages 202-235, Edward Elgar Publishing.
    14. Powe, N. A. & Bateman, I. J., 2003. "Ordering effects in nested 'top-down' and 'bottom-up' contingent valuation designs," Ecological Economics, Elsevier, vol. 45(2), pages 255-270, June.
    15. Clem Tisdell & Clevo Wilson, 2006. "Information, Wildlife Valuation, Conservation: Experiments And Policy," Contemporary Economic Policy, Western Economic Association International, vol. 24(1), pages 144-159, January.
    16. Cameron, Trudy Ann & Englin, Jeffrey, 1997. "Respondent Experience and Contingent Valuation of Environmental Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 296-313, July.
    17. Carson, Richard & Flores, Nicholas E. & Hanemann, W. Michael, 1998. "Sequencing and Valuing Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 314-323, November.
    18. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    19. Banzhaf, H. Spencer, 2016. "Constructing markets: environmental economics and the contingent valuation controversy," MPRA Paper 78814, University Library of Munich, Germany.
    20. Ressurreição, Adriana & Gibbons, James & Dentinho, Tomaz Ponce & Kaiser, Michel & Santos, Ricardo S. & Edwards-Jones, Gareth, 2011. "Economic valuation of species loss in the open sea," Ecological Economics, Elsevier, vol. 70(4), pages 729-739, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:46:y:1995:i:1:p:97-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.