IDEAS home Printed from https://ideas.repec.org/a/ris/badest/0791.html
   My bibliography  Save this article

Anchoring Effect in Context of a Familiar Good: A Case Study of Irrigation Water Supply in Rural India

Author

Listed:
  • DURBA BISWAS

    (Post doctoral fellow at Ashoka Trust for Research in Ecology and the Environment (ATREE))

Abstract

Literature shows that the presence of anchoring effect invalidates contingent valuation results. However, studies from developing countries have not addressed this phenomenon adequately. In this paper, indication of anchoring effect was tested using results from a contingent valuation exercise for a familiar good – canal irrigation water used by farmers – in a rural region of India. A single bound dichotomous choice question was followed up by a final open-ended question about the respondents’ maximum willingness to pay for improved water supply. Anchoring effect was not detected which is consistent with the argument that familiarity reduces anchoring. Furthermore, validity tested through a scope insensitivity test shows that the estimated economic values are valid.

Suggested Citation

  • Durba Biswas, 2015. "Anchoring Effect in Context of a Familiar Good: A Case Study of Irrigation Water Supply in Rural India," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 38(4), pages 91-98.
    • Handle: RePEc:ris:badest:0791
    as

    Download full text from publisher

    File URL: http://bids.org.bd/uploads/publication/BDS/38/38-4/04_Anchoring%20effect%20in%20context%20of%20a%20familiar%20good.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dambala Gelo & Steven F. Koch, 2011. "Contingent Valuation of Community Forestry Programs in Ethiopia: Observing Preference Anomalies in Double-Bounded CVM," Working Papers 201124, University of Pretoria, Department of Economics.
    2. Durba Biswas & L. Venkatachalam, 2015. "Farmers' Willingness to Pay for Improved Irrigation Water — A Case Study of Malaprabha Irrigation Project in Karnataka, India," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1-24.
    3. Whittington, Dale & Briscoe, John & Mu, Xinming & Barron, William, 1990. "Estimating the Willingness to Pay for Water Services in Developing Countries: A Case Study of the Use of Contingent Valuation Surveys in Southern Haiti," Economic Development and Cultural Change, University of Chicago Press, vol. 38(2), pages 293-311, January.
    4. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427, December.
    5. Jonathan E. Alevy & Craig E. Landry & John A. List, 2015. "Field Experiments On The Anchoring Of Economic Valuations," Economic Inquiry, Western Economic Association International, vol. 53(3), pages 1522-1538, July.
    6. Silverman, Jonathan & Klock, Mark, 1989. "The behavior of respondents in contingent valuation: Evidence on starting bids," Journal of Behavioral Economics, Elsevier, vol. 18(1), pages 51-60.
    7. Raje, D. V. & Dhobe, P. S. & Deshpande, A. W., 2002. "Consumer's willingness to pay more for municipal supplied water: a case study," Ecological Economics, Elsevier, vol. 42(3), pages 391-400, September.
    8. Richard T. Carson, 2012. "Contingent Valuation: A Practical Alternative When Prices Aren't Available," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 27-42, Fall.
    9. Jorgensen, Bradley S. & Syme, Geoffrey J., 2000. "Protest responses and willingness to pay: attitude toward paying for stormwater pollution abatement," Ecological Economics, Elsevier, vol. 33(2), pages 251-265, May.
    10. repec:rza:wpaper:272 is not listed on IDEAS
    11. Weldesilassie, Alebel B. & Fror, Oliver & Boelee, Eline & Dabbert, Stephan, 2009. "The Economic Value of Improved Wastewater Irrigation: A Contingent Valuation Study in Addis Ababa, Ethiopia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-22, December.
    Full references (including those not matched with items on IDEAS)

    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. MEZGEBO, Alem & GETA, Endrias & ZELEKE, Fresenbet, 2016. "Urban Freshwater Users Willingness To Pay For Upland Degraded Watershed Management: The Case Of Dechatu In Dire Dawa Administration, Ethiopia," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(01), pages 1-8, March.
    2. Gurluk, Serkan, 2006. "The estimation of ecosystem services' value in the region of Misi Rural Development Project: Results from a contingent valuation survey," Forest Policy and Economics, Elsevier, vol. 9(3), pages 209-218, December.
    3. Lee, Kyung-Sook & Kim, Ju-Hee & Yoo, Seung-Hoon, 2021. "Would people pay a price premium for electricity from domestic wind power facilities? The case of South Korea," Energy Policy, Elsevier, vol. 156(C).
    4. Daniel R. Petrolia & Matthew G. Interis & Joonghyun Hwang, 2018. "Single-Choice, Repeated-Choice, and Best-Worst Scaling Elicitation Formats: Do Results Differ and by How Much?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 365-393, February.
    5. Ulrich J Frey & Frauke Pirscher, 2018. "Willingness to pay and moral stance: The case of farm animal welfare in Germany," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-20, August.
    6. Laia Soler & Nicolas Borzykowski, 2021. "The costs of celiac disease: a contingent valuation in Switzerland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(9), pages 1487-1505, December.
    7. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    8. Gebretsadik, Kidanemariam Abreha & Romstad, Eirik, 2020. "Climate and farmers’ willingness to pay for improved irrigation water supply," World Development Perspectives, Elsevier, vol. 20(C).
    9. Baker, Rick & Ruting, Brad, 2014. "Environmental Policy Analysis: A Guide to Non‑Market Valuation," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165810, Australian Agricultural and Resource Economics Society.
    10. Gelo, Dambala & Koch, Steven F., 2015. "Contingent valuation of community forestry programs in Ethiopia: Controlling for preference anomalies in double-bounded CVM," Ecological Economics, Elsevier, vol. 114(C), pages 79-89.
    11. Irina Klytchnikova & Michael Lokshin, 2009. "Measuring Welfare Gains from Better Quality Infrastructure," Journal of Infrastructure Development, India Development Foundation, vol. 1(2), pages 87-109, December.
    12. Michael Kaplowitz & Frank Lupi & Oscar Arreola, 2012. "Local Markets for Payments for Environmental Services: Can Small Rural Communities Self-Finance Watershed Protection?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(13), pages 3689-3704, October.
    13. Daniel R. Petrolia & Matthew G. Interis & Joonghyun Hwang, 2014. "America's Wetland? A National Survey of Willingness to Pay for Restoration of Louisiana's Coastal Wetlands," Marine Resource Economics, University of Chicago Press, vol. 29(1), pages 17-37.
    14. Halkos, George, 2012. "The use of contingent valuation in assessing marine and coastal ecosystems’ water quality: A review," MPRA Paper 42183, University Library of Munich, Germany.
    15. Alemu Mekonnen & Zenebe Gebreegziabher & Abebe D. Beyene & Fitsum Hagos, 2019. "Valuation of Access to Irrigation Water in Rural Ethiopia: Application of Choice Experiment and Contingent Valuation Methods," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-26, September.
    16. Ngouhouo Poufoun, Jonas & Abildtrup, Jens & Sonwa, Dénis Jean & Delacote, Philippe, 2016. "The value of endangered forest elephants to local communities in a transboundary conservation landscape," Ecological Economics, Elsevier, vol. 126(C), pages 70-86.
    17. Mikhail Miklyaev & Alan S. Wyatt & Ridha Drebika & Owotomiwa (Christiana) Olubamiro & Glenn P. Jenkins, 2024. "Financial And Economic Appraisal Of Water Supply Desalination Technologies And Reuse Initiatives:Integrating Modern Portfolio Theory Into Strategic Water Resource Allocation," Development Discussion Papers 2024-02 Jel Classificatio, JDI Executive Programs.
    18. George Parsons & Kelley Myers, 2017. "Fat tails and truncated bids in contingent valuation: an application to an endangered shorebird species," Chapters, in: Daniel McFadden & Kenneth Train (ed.), Contingent Valuation of Environmental Goods, chapter 2, pages 17-42, Edward Elgar Publishing.
    19. Massimo Filippini & Adán L. Martínez-Cruz, 2016. "Impact of environmental and social attitudes, and family concerns on willingness to pay for improved air quality: a contingent valuation application in Mexico City," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-18, December.
    20. Felix Schläpfer, 2021. "Inadequate Standards in the Valuation of Public Goods and Ecosystem Services: Why Economists, Environmental Scientists and Policymakers Should Care," Sustainability, MDPI, vol. 13(1), pages 1-10, January.

    More about this item

    Keywords

    Irrigation Water; Contingent Valuation; Anchoring Effect; Construct Validity; Developing Country;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    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:ris:badest:0791. 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: Meftaur Rahman, Cheif Publication Officer, BIDS (email available below). General contact details of provider: https://edirc.repec.org/data/bidssbd.html .

    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.