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Contingent Valuation: Comparing Participant Performance in Group-Based Approaches and Personal Interviews

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  • Nele Lienhoop
  • Douglas C. Macmillan

Abstract

This paper reports a Contingent Valuation application to estimate the non-market costs and benefits of hydro scheme developments in an Icelandic wilderness area. A deliberative group-based approach, called Market Stall, is compared to a control group consisting of conventional in-person interviews, in order to investigate flaws of Contingent Valuation, such as poor validity and protest responses. Perceived property rights suggested the use of willingness-to-accept in compensation for wilderness loss and willingness-to-pay for hydro scheme benefits. The study is novel as it applies participant behaviour observation to gain insights into the shortcomings of conventional data collection modes. Main drawbacks with in-person interviews were found to be low motivation, standardised information and time pressure which hindered individuals from carefully considering their preferences. Market Stall performed better in the study: welfare estimates were more easily explained by socio-economic variables, the non-response rate was lower, and respondents were more engaged. Our research findings also suggest that participant behaviour can be used to supplement conventional validity tests.

Suggested Citation

  • Nele Lienhoop & Douglas C. Macmillan, 2007. "Contingent Valuation: Comparing Participant Performance in Group-Based Approaches and Personal Interviews," Environmental Values, , vol. 16(2), pages 209-232, May.
    • Handle: RePEc:sae:envval:v:16:y:2007:i:2:p:209-232
    DOI: 10.3197/096327107780474500
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    1. Ajzen, Icek & Brown, Thomas C. & Rosenthal, Lori H., 1996. "Information Bias in Contingent Valuation: Effects of Personal Relevance, Quality of Information, and Motivational Orientation," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 43-57, January.
    2. Fischhoff, Baruch & Furby, Lita, 1988. "Measuring Values: A Conceptual Framework for Interpreting Transactions with Special Reference to Contingent Valuation of Visibility," Journal of Risk and Uncertainty, Springer, vol. 1(2), pages 147-184, June.
    3. Wilson, Matthew A. & Howarth, Richard B., 2002. "Discourse-based valuation of ecosystem services: establishing fair outcomes through group deliberation," Ecological Economics, Elsevier, vol. 41(3), pages 431-443, June.
    4. Kotchen, Matthew J. & Reiling, Stephen D., 2000. "Environmental attitudes, motivations, and contingent valuation of nonuse values: a case study involving endangered species," Ecological Economics, Elsevier, vol. 32(1), pages 93-107, January.
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    1. Jacob Ainscough & Jasper O. Kenter & Elaine Azzopardi & A. Meriwether W. Wilson, 2024. "Participant perceptions of different forms of deliberative monetary valuation: Comparing democratic monetary valuation and deliberative democratic monetary valuation in the context of regional marine ," Environmental Values, , vol. 33(2), pages 189-215, April.

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