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A Field Experiment Involving Cash and Hypothetical Charitable Donations

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  • Douglas Macmillan
  • Trevor Smart
  • Andrew Thorburn

Abstract

An important focus for concern about Contingent Valuation (CV) is that hypothetical payments for non-market goods are biased upwards in comparison to cash payments. Lack of realism, through its influence on incentives to mis-report payments, may explain the divergence. This paper reports on a study which attempts to overcome this problem by emulating a real fund-raising solicitation by the Isle of Eigg Trust for both real and hypothetical donations. In contrast to previous results, the mean cash donation was higher (£3.71) than the man CV donation (£3.41). A third survey, which used a neutral CV design, implemented by a research organization, obtained a mean donation which was much higher (£6.21) than the cash equivalent. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Douglas Macmillan & Trevor Smart & Andrew Thorburn, 1999. "A Field Experiment Involving Cash and Hypothetical Charitable Donations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(3), pages 399-412, October.
    • Handle: RePEc:kap:enreec:v:14:y:1999:i:3:p:399-412
    DOI: 10.1023/A:1008304405734
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. MacMillan, Douglas & Hanley, Nick & Lienhoop, Nele, 2006. "Contingent valuation: Environmental polling or preference engine?," Ecological Economics, Elsevier, vol. 60(1), pages 299-307, November.
    3. repec:kap:iaecre:v:13:y:2007:i:2:p:171-182 is not listed on IDEAS
    4. Debra Israel, 2007. "Charitable Donations: Evidence of Demand for Environmental Protection?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(2), pages 171-182, May.
    5. Ken Belcher & Andrea Germann & Josef Schmutz, 2007. "Beef with environmental and quality attributes: Preferences of environmental group and general population consumers in Saskatchewan, Canada," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 24(3), pages 333-342, September.
    6. Edward J. Lopez & W. Robert Nelson, 2005. "The Endowment Effect in a Public Good Experiment," Experimental 0512001, University Library of Munich, Germany.
    7. Schlapfer, Felix & Roschewitz, Anna & Hanley, Nick, 2004. "Validation of stated preferences for public goods: a comparison of contingent valuation survey response and voting behaviour," Ecological Economics, Elsevier, vol. 51(1-2), pages 1-16, November.

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