IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v12y1998i3p375-386.html
   My bibliography  Save this article

WTA Estimates Using the Method of Paired Comparison: Tests of Robutness

Author

Listed:
  • Patrucua Champ
  • John Loomis

Abstract

The method of paired comparison is modified to allow choices between two alternative gains so as to estimate willingness to accept (WTA) without loss aversion. The robustness of WTA values for two public goods is tested with respect to sensitivity of the WTA measure to the context of the bundle of goods used in the paired comparison exercise and to the scope (scale) of the public good project. There was no statistical difference in WTA measures for open space based on independent treatments with different contexts. One treatment involved valuing open space within a set of goods with similar value. The other treatment involved valuing open space within a choice set of goods which had lower dollar values than open space. There was a statistical difference in WTA between a permanent expansion in the bus system and a temporary expansion in the bus system. We conclude the method of paired comparison appears to be a very promising approach to elicit measures of WTA. Copyright Kluwer Academic Publishers 1998

Suggested Citation

  • Patrucua Champ & John Loomis, 1998. "WTA Estimates Using the Method of Paired Comparison: Tests of Robutness," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(3), pages 375-386, October.
    • Handle: RePEc:kap:enreec:v:12:y:1998:i:3:p:375-386
    DOI: 10.1023/A:1008265128762
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1008265128762
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1008265128762?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carson, Richard T., 1995. "Contingent Valuation Surveys and Tests of Insensitivity to Scope," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148791, Australian Agricultural and Resource Economics Society.
    2. Magat, Wesley A. & Kip Viscusi, W. & Huber, Joel, 1988. "Paired comparison and contingent valuation approaches to morbidity risk valuation," Journal of Environmental Economics and Management, Elsevier, vol. 15(4), pages 395-411, December.
    3. 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.
    4. Bromley, Daniel W., 1995. "Property rights and natural resource damage assessments," Ecological Economics, Elsevier, vol. 14(2), pages 129-135, August.
    5. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-1348, December.
    6. Richard T. Carson & Nicholas E. Flores & Kerry M. Martin & Jennifer L. Wright, 1996. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," Land Economics, University of Wisconsin Press, vol. 72(1), pages 80-99.
    7. Hoehn John P. & Loomis John B., 1993. "Substitution Effects in the Valuation of Multiple Environmental Programs," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 56-75, July.
    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. Donald, Vandegrift & Michael, Lahr, 2007. "Open Space Purchases, House Prices, and the Tax Base," MPRA Paper 6118, University Library of Munich, Germany.
    2. David C. Kingsley & Thomas C. Brown, 2010. "Preference Uncertainty, Preference Learning, and Paired Comparison Experiments," Land Economics, University of Wisconsin Press, vol. 86(3).
    3. Schlapfer, Felix, 2006. "Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis," Ecological Economics, Elsevier, vol. 57(3), pages 415-429, May.
    4. Dietrich Earnhart, 2006. "Using Contingent-Pricing Analysis to Value Open Space and Its Duration at Residential Locations," Land Economics, University of Wisconsin Press, vol. 82(1), pages 17-35.
    5. Euston Quah & Edward Choa & K. C. Tan, 2006. "Use of damage schedules in environmental valuation: The case of urban Singapore," Applied Economics, Taylor & Francis Journals, vol. 38(13), pages 1501-1512.

    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. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    2. 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.
    3. 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.
    4. Sælensminde, Kjartan, 2003. "Embedding effects in valuation of non-market goods," Transport Policy, Elsevier, vol. 10(1), pages 59-72, January.
    5. Hiselius, Lena Winslott, 2005. "Preferences regarding road transports of hazardous materials using choice experiments - any sign of biases?," Working Papers 2005:30, Lund University, Department of Economics.
    6. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    7. Tonin, Stefania, 2018. "Citizens’ perspectives on marine protected areas as a governance strategy to effectively preserve marine ecosystem services and biodiversity," Ecosystem Services, Elsevier, vol. 34(PB), pages 189-200.
    8. Stern, David I., 1997. "Limits to substitution and irreversibility in production and consumption: A neoclassical interpretation of ecological economics," Ecological Economics, Elsevier, vol. 21(3), pages 197-215, June.
    9. 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.
    10. Diane Dupont, 2003. "CVM Embedding Effects When There Are Active, Potentially Active and Passive Users of Environmental Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(3), pages 319-341, July.
    11. Nir Becker & Yael Choresh & Ofer Bahat & Moshe Inbar, 2010. "Cost benefit analysis of conservation efforts to preserve an endangered species: The Griffon Vulture (Gyps fulvus) in Israel," Journal of Bioeconomics, Springer, vol. 12(1), pages 55-70, April.
    12. Clark, Jeremy & Friesen, Lana, 2008. "The causes of order effects in contingent valuation surveys: An experimental investigation," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 195-206, September.
    13. 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.
    14. Mullarkey, Daniel J. & Bishop, Richard C., 1999. "Sensitivity To Scope: Evidence From A Cvm Study Of Wetlands," 1999 Annual meeting, August 8-11, Nashville, TN 21513, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    16. Svenningsen, Lea S. & Jacobsen, Jette Bredahl, 2018. "Testing the effect of changes in elicitation format, payment vehicle and bid range on the hypothetical bias for moral goods," Journal of choice modelling, Elsevier, vol. 29(C), pages 17-32.
    17. Banzhaf, H. Spencer, 2016. "Constructing markets: environmental economics and the contingent valuation controversy," MPRA Paper 78814, University Library of Munich, Germany.
    18. repec:ken:wpaper:0805 is not listed on IDEAS
    19. Jack L. Knetsch, 2016. "Reference Dependence And Other Behavioral Findings: The Likelihood Of Serious Evaluation And Policy Biases," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(03), pages 1-11, June.
    20. Bernard van denBerg & Werner Brouwer & Job van Exel & Marc Koopmanschap, 2005. "Economic valuation of informal care: the contingent valuation method applied to informal caregiving," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 169-183, February.
    21. Bruno S. Frey & Simon Luechinger, 2005. "Measuring terrorism," Chapters, in: Alain Marciano & Jean-Michel Josselin (ed.), Law and the State, chapter 6, Edward Elgar Publishing.

    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:kap:enreec:v:12:y:1998:i:3:p:375-386. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.