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Stated Preferences with Survey Consequentiality and Outcome Uncertainty: A Split Sample Discrete Choice Experiment

Author

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  • Tensay Hadush Meles

    (Economic and Social Research Institute
    Trinity College Dublin)

  • Razack Lokina

    (University of Dar es Salaam)

  • Erica Louis Mtenga

    (University of Dar es Salaam)

  • Julieth Julius Tibanywana

    (University of Dar es Salaam)

Abstract

Stated preference studies are often based on the assumptions that proposed outcomes would realize with certainty and respondents believe their survey responses are consequential. This paper uses split sample treatments to test whether survey consequentiality and outcome uncertainty lead to differences in welfare measures, focusing on a discrete choice experiment on improving quality of electricity supply among business enterprises in Tanzania. Our results show that incorporating uncertainty not only affects the preferences for the attribute with uncertainty (duration of power outage) but also for a choice attribute with a precautionary feature (advanced outage notification). While outcome uncertainty and an additional survey script (a formal letter from a state-owned electric utility) to strengthen consequentiality have some influence on preferences and willingness to pay (WTP) estimates for certain attributes, we do not find significant implications on overall welfare estimates.

Suggested Citation

  • Tensay Hadush Meles & Razack Lokina & Erica Louis Mtenga & Julieth Julius Tibanywana, 2023. "Stated Preferences with Survey Consequentiality and Outcome Uncertainty: A Split Sample Discrete Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(4), pages 717-754, December.
    • Handle: RePEc:kap:enreec:v:86:y:2023:i:4:d:10.1007_s10640-023-00810-5
    DOI: 10.1007/s10640-023-00810-5
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    More about this item

    Keywords

    Stated preferences; Survey consequentiality; Outcome uncertainty; Discrete choice experiment; Power outages; Business enterprises; Tanzania;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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