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Ordering effects in contingent valuation surveys

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  • Bente Halvorsen

Abstract

This paper focuses on ordering effects in CVM surveys; how the expressed value of a particular good valued in a sequence of several goods depends on where in the sequence the good is valued. We use data from a Norwegian CVM survey focusing on WTP for a 50% reduction in air pollution from car traffic to test for the existence of ordering effects and to apply a test for internal consistency. We found considerable and significant ordering effects in our data, but were not able to reject the hypothesis of internal consistency. Based on our survey, we argue that ordering effects may be a result of rational choice. These effects are problematic if a sequential valuation procedure is applied to a simultaneous problem, and/or the respondents are given imperfect information about the decision problem. Copyright Kluwer Academic Publishers 1996

Suggested Citation

  • Bente Halvorsen, 1996. "Ordering effects in contingent valuation surveys," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(4), pages 485-499, December.
    • Handle: RePEc:kap:enreec:v:8:y:1996:i:4:p:485-499
    DOI: 10.1007/BF00357416
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    1. G.S. Maddala & Forrest D. Nelson, 1975. "Specification Errors in Limited Dependent Variable Models," NBER Working Papers 0096, National Bureau of Economic Research, Inc.
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    4. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    5. Hurd, Michael, 1979. "Estimation in truncated samples when there is heteroscedasticity," Journal of Econometrics, Elsevier, vol. 11(2-3), pages 247-258.
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    Cited by:

    1. Dominika Parry Dziegielewska & Robert Mendelsohn, 2005. "Valuing Air Quality in Poland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(2), pages 131-163, February.
    2. Stewart, Jennifer M. & O'Shea, Eamon & Donaldson, Cam & Shackley, Phil, 2002. "Do ordering effects matter in willingness-to-pay studies of health care?," Journal of Health Economics, Elsevier, vol. 21(4), pages 585-599, July.
    3. Eva Kougea & Phoebe Koundouri, 2011. "Air Quality Degradation: Can Economics Help in Measuring its Welfare Effects? A Review of Economic Valuation Studies," Chapters, in: Jose A. Orosa (ed.), Indoor and Outdoor Air Pollution, IntechOpen.
    4. Noboru Hidano & Takaaki Kato, 2008. "Determining variability of willingness to pay for Japan’s antiglobal-warming policies: a comparison of contingent valuation surveys," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 9(4), pages 259-281, December.
    5. Lopez-Becerra, E.I. & Alcon, F., 2021. "Social desirability bias in the environmental economic valuation: An inferred valuation approach," Ecological Economics, Elsevier, vol. 184(C).
    6. Jones, Nikoleta & Sophoulis, Costas M. & Malesios, Chrisovaladis, 2008. "Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2478-2491, December.
    7. Fredrik Carlsson & Peter Martinsson, 2001. "Willingness to pay for reduction in air pollution: a multilevel analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 4(1), pages 17-27, March.
    8. Bente Halvorsen & Tiril Willumsen, 2002. "Willingness to Pay for Dental Fear Treatment. Is Supplying Fear Treatment Socially Beneficial?," Discussion Papers 334, Statistics Norway, Research Department.
    9. Sonia Akter & Jeff Bennett, 2011. "Household perceptions of climate change and preferences for mitigation action: the case of the Carbon Pollution Reduction Scheme in Australia," Climatic Change, Springer, vol. 109(3), pages 417-436, December.
    10. Logar, Ivana & Brouwer, Roy & Campbell, Danny, 2020. "Does attribute order influence attribute-information processing in discrete choice experiments?," Resource and Energy Economics, Elsevier, vol. 60(C).
    11. Stithou, Mavra, 2009. "Respondent Certainty and Payment Vehicle Effect in Contingent Valuation: an Empirical Study for the Conservation of Two Endangered Species in Zakynthos Island, Greece," Stirling Economics Discussion Papers 2009-21, University of Stirling, Division of Economics.
    12. Meg Perry-Duxbury & Job Exel & Werner Brouwer, 2019. "How to value safety in economic evaluations in health care? A review of applications in different sectors," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1041-1061, September.
    13. Ståle Navrud, 2001. "Valuing Health Impacts from Air Pollution in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(4), pages 305-329, December.
    14. María Xosé Vázquez & Jorge E. Araña & Carmelo J. León, 2006. "Economic evaluation of health effects with preference imprecision," Health Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 403-417, April.
    15. Julia Martin‐Ortega & M. Azahara Mesa‐Jurado & Julio Berbel, 2015. "Revisiting the Impact of Order Effects on Sensitivity to Scope: A Contingent Valuation of a Common‐Pool Resource," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(3), pages 705-726, September.
    16. Bente Halvorsen & Tiril Willumsen, 2004. "Willingness to pay for dental fear treatment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 5(4), pages 299-308, November.
    17. Okuyama, Tadahiro, 2018. "Analysis of optimal timing of tourism demand recovery policies from natural disaster using the contingent behavior method," Tourism Management, Elsevier, vol. 64(C), pages 37-54.
    18. Annemieke De Ridder & Diana De Graeve, 2005. "Order bias in estimates of willingness to pay for drugs to treat attention-deficit/hyperactivity disorder," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(2), pages 146-151, June.
    19. Kevin Boyle & Semra Özdemir, 2009. "Convergent Validity of Attribute-Based, Choice Questions in Stated-Preference Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 247-264, February.
    20. Anne ROZAN & Marc WILLINGER, 1999. "Does the knowledge of the origin of the health damage matter for WTP estimates?," Working Papers of BETA 9904, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    21. Alexandra K. Shannon & Faraz Usmani & Subhrendu K. Pattanayak & Marc Jeuland, 2019. "The Price of Purity: Willingness to Pay for Air and Water Purification Technologies in Rajasthan, India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1073-1100, August.
    22. Nguyen Duc Kien & Nguyen H. D. My & Dang Thi Anh Thu & Ton That Canh Tri & Nghiem Hong Son & Thai Khanh Phong & Hoang Cong Tin & Nguyen Hoang Lan & Tran Binh Thang & Bui Dung The & Phung Tri Dung, 2023. "Valuation of a Heatwave Early Warning System for Mitigating Risks Associated with Heat-Related Illness in Central Vietnam," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    23. Anne Rozan, 2001. "How to measure health costs induced by air pollution?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 137(I), pages 103-116, March.
    24. Noboru Hidano & Takaaki Kato, 2008. "Determining variability of willingness to pay for Japan’s antiglobal-warming policies: a comparison of contingent valuation surveys," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 9(4), pages 259-281, December.

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