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Sensitivity of Contingent Valuation to Alternative Payment Schedules


  • Thomas H. Stevens
  • Nichole E. DeCoteau
  • Cleve E. Willis


Insensitivity to payment schedule, wherein respondents do not adequately differentiate between a one-time payment and a series of payments may be an important, but often overlooked factor in the design, interpretation, and use of contingent valuation studies. Several contingent valuation experiments involving a familiar private good and a less familiar environmental commodity indicate that although respondents distinguished between lump sum and periodic payment schedules, implicit discount rates were very high, suggesting that sensitivity to payment schedule is an important subject for further study.

Suggested Citation

  • Thomas H. Stevens & Nichole E. DeCoteau & Cleve E. Willis, 1997. "Sensitivity of Contingent Valuation to Alternative Payment Schedules," Land Economics, University of Wisconsin Press, vol. 73(1), pages 140-148.
  • Handle: RePEc:uwp:landec:v:73:y:1997:i:1:p:140-148

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    References listed on IDEAS

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    4. Thomas H. Tietenberg, 1980. "Transferable Discharge Permits and the Control of Stationary Source Air Pollution: A Survey and Synthesis," Land Economics, University of Wisconsin Press, vol. 56(4), pages 391-416.
    5. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, March.
    6. Krupnick, Alan J. & Oates, Wallace E. & Van De Verg, Eric, 1983. "On marketable air-pollution permits: The case for a system of pollution offsets," Journal of Environmental Economics and Management, Elsevier, vol. 10(3), pages 233-247, September.
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