Does Uncertainty Affect the Divergence between WTP and WTA Measures?
Many empirical studies have demonstrated large discrepancies between willingness to accept (WTA) and willingness to pay (WTP) measures. This paper examines the extent to which uncertainty about the environmental quality improvement can lead to a divergence between WTP and WTA measures. Indirect utility function parameters and uncertainty about the environmental quality change affect the extent to which WTP and WTA measures can differ. These results have implications for design and implementation of contingent valuation surveys.
Volume (Year): 4 (2004)
Issue (Month): 1 ()
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