IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v7y2000i7p447-450.html

Hypothetical surveys versus real commitments: further evidence

Author

Listed:
  • J. Lon Carlson

Abstract

The contingent valuation method is frequently used to estimate willingness to pay for environmental services. However, numerous studies have raised serious questions about the validity and reliability of such estimates. The study reported here extends the analysis of hypothetical versus real commitments by considering the effects of alternative indicators of WTP in the hypothetical setting. While part of the results confirm the findings of previous studies-CV methods can result in an overestimate of actual mean WTP-evidence is also produced that a carefully designed CV instrument can produce an estimate of mean WTP that is much closer to actual mean WTP than previous studies would suggest.

Suggested Citation

  • J. Lon Carlson, 2000. "Hypothetical surveys versus real commitments: further evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 7(7), pages 447-450.
    • Handle: RePEc:taf:apeclt:v:7:y:2000:i:7:p:447-450
    DOI: 10.1080/135048500351159
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/135048500351159&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/135048500351159?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Boyle Kevin J. & Desvousges William H. & Johnson F. Reed & Dunford Richard W. & Hudson Sara P., 1994. "An Investigation of Part-Whole Biases in Contingent-Valuation Studies," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 64-83, July.
    2. Schkade David A. & Payne John W., 1994. "How People Respond to Contingent Valuation Questions: A Verbal Protocol Analysis of Willingness to Pay for an Environmental Regulation," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 88-109, January.
    3. Helen R. Neill & Ronald G. Cummings & Philip T. Ganderton & Glenn W. Harrison & Thomas McGuckin, 1994. "Hypothetical Surveys and Real Economic Commitments," Land Economics, University of Wisconsin Press, vol. 70(2), pages 145-154.
    4. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kanya, Lucy & Sanghera, Sabina & Lewin, Alex & Fox-Rushby, Julia, 2019. "The criterion validity of willingness to pay methods: A systematic review and meta-analysis of the evidence," Social Science & Medicine, Elsevier, vol. 232(C), pages 238-261.
    2. Kanya, Lucy & Saghera, Sabina & Lewin, Alex & Fox-Rushby, Julia, 2019. "The criterion validity of willingness to pay methods: a systematic review and meta-analysis of the evidence," LSE Research Online Documents on Economics 100741, London School of Economics and Political Science, LSE Library.
    3. Fan Yang & Ling Ding & Cai Liu & Lizheng Xu & Stephen Nicholas & Jian Wang, 2018. "Haze Attitudes and the Willingness to Pay for Haze Improvement: Evidence from Four Cities in Shandong Province, China," IJERPH, MDPI, vol. 15(10), pages 1-15, October.

    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. Johnston, Robert J. & Swallow, Stephen K. & Weaver, Thomas F., 1999. "Estimating Willingness to Pay and Resource Tradeoffs with Different Payment Mechanisms: An Evaluation of a Funding Guarantee for Watershed Management," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 97-120, July.
    2. Robert J. Johnston & Ewa Zawojska, 2018. "Benefit Transfer and Commodity Measurement Scales: Consequences for Validity and Reliability," Working Papers 2018-26, Faculty of Economic Sciences, University of Warsaw.
    3. Bateman, Ian J. & Brouwer, Roy, 2006. "Consistency and construction in stated WTP for health risk reductions: A novel scope-sensitivity test," Resource and Energy Economics, Elsevier, vol. 28(3), pages 199-214, August.
    4. Subade, Rodelio F. & Francisco, Herminia A., 2014. "Do non-users value coral reefs?: Economic valuation of conserving Tubbataha Reefs, Philippines," Ecological Economics, Elsevier, vol. 102(C), pages 24-32.
    5. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    6. Bernt Kartman & Nils‐Olov Stålhammar & Magnus Johannesson, 1996. "Valuation of health changes with the contingent valuation method: A test of scope and question order effects," Health Economics, John Wiley & Sons, Ltd., vol. 5(6), pages 531-541, November.
    7. Loomis, John B., 2010. "Testing Construct Validity of River Recreation Use Values: A Comparison of Direct Elicitation of Use Values to Use Values Inferred Indirectly from WTP for Total Economic Value," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60410, Agricultural and Applied Economics Association.
    8. Schläpfer, Felix & Schmitt, Marcel & Roschewitz, Anna, 2008. "Competitive politics, simplified heuristics, and preferences for public goods," Ecological Economics, Elsevier, vol. 65(3), pages 574-589, April.
    9. Frykblom, Peter, 1997. "Hypothetical Question Modes and Real Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 275-287, November.
    10. Murphy, James J. & Stevens, Thomas H., 2004. "Contingent Valuation, Hypothetical Bias, and Experimental Economics," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(2), pages 182-192, October.
    11. James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, March.
    12. Liljas, Bengt & Blumenschein, Karen, 2000. "On hypothetical bias and calibration in cost-benefit studies," Health Policy, Elsevier, vol. 52(1), pages 53-70, May.
    13. Sælensminde, Kjartan, 2003. "Embedding effects in valuation of non-market goods," Transport Policy, Elsevier, vol. 10(1), pages 59-72, January.
    14. John K. Horowitz & Kenneth E. McConnell & James J. Murphy, 2013. "Behavioral foundations of environmental economics and valuation," Chapters, in: John A. List & Michael K. Price (ed.), Handbook on Experimental Economics and the Environment, chapter 4, pages 115-156, Edward Elgar Publishing.
    15. Johnson, Laurie Tipton, 2006. "Distributional preferences in contingent valuation surveys," Ecological Economics, Elsevier, vol. 56(4), pages 475-487, April.
    16. Newell, Laurie W. & Swallow, Stephen K., 2013. "Real-payment choice experiments: Valuing forested wetlands and spatial attributes within a landscape context," Ecological Economics, Elsevier, vol. 92(C), pages 37-47.
    17. Lunander, Anders, 1998. "Inducing Incentives to Understate and to Overstate Willingness to Pay within the Open-Ended and the Dichotomous-Choice Elicitation Formats: An Experimental Study," Journal of Environmental Economics and Management, Elsevier, vol. 35(1), pages 88-102, January.
    18. Timothy C. Haab & Kenneth E. McConnell, "undated". "Intuitive Bounds on Willingness to Pay," Working Papers 9609, East Carolina University, Department of Economics.
    19. Eulàlia Dalmau‐Matarrodona, 2001. "Alternative approaches to obtain optimal bid values in contingent valuation studies and to model protest zeros. Estimating the determinants of individuals' willingness to pay for home care services in day case surgery," Health Economics, John Wiley & Sons, Ltd., vol. 10(2), pages 101-118, March.
    20. Gubanova, Tatiana & Adamowicz, Wiktor L. & McMillan, Melville, 2009. "'Pocket and Pot': Hypothetical Bias in a No-Free-Riding Public Contribution Game," Staff Paper Series 91403, University of Alberta, Department of Resource Economics and Environmental Sociology.

    More about this item

    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:taf:apeclt:v:7:y:2000:i:7:p:447-450. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.