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Comparing Choice Question Formats for Evaluating Natural Resource Tradeoffs

  • William S. Breffle
  • Robert D. Rowe
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    Choice questions are increasingly being used to scale competing natural resource programs. Respondents choose between two alternatives with varying levels of program characteristics and costs. Complexity in the choice task can increase the randomness (variance) in the choices and the estimation of preferences, and the magnitude of randomness is examined using scope tests and scale parameters. We provide an empirical comparison of response variance from three formats. A simple resource-to-resource format appears superior to simple referendum and composite formats in terms of coherence. The application stems from a study addressing PCBcaused natural resource losses in Green Bay, Wisconsin.

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    File URL: http://le.uwpress.org/cgi/reprint/78/2/298
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    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 78 (2002)
    Issue (Month): 2 ()
    Pages: 298-314

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    Handle: RePEc:uwp:landec:v:78:y:2002:i:2:p:298-314
    Contact details of provider: Web page: http://le.uwpress.org/

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    1. Marisa J. Mazzotta & James J. Opaluch, 1995. "Decision Making When Choices Are Complex: A Test of Heiner's Hypothesis," Land Economics, University of Wisconsin Press, vol. 71(4), pages 500-515.
    2. Carson, Richard T & Flores, Nicholas A, 2000. "Contingent Valuation: Controversies and Evidence," University of California at San Diego, Economics Working Paper Series qt75k752s7, Department of Economics, UC San Diego.
    3. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    4. Kip Viscusi, W. & Magat, Wesley A. & Huber, Joel, 1991. "Pricing environmental health risks: survey assessments of risk-risk and risk-dollar trade-offs for chronic bronchitis," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 32-51, July.
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