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Sequence Effects in the Valuation of Multiple Environmental Programs Using the Contingent Valuation Method

Author

Listed:
  • Alberto Longo
  • David Hoyos
  • Anil Markandya

Abstract

In contingent valuation, the willingness to pay for hypothetical programs may be affected by the order in which programs are presented to respondents. With inclusive lists, economic theory suggests that sequence effects should be expected. However, when policy makers allocate public budgets to several environmental programs, they may be interested in assessing the value of the programs without the valuations being affected by the order in which the programs are presented. Using single-bounded dichotomous choice contingent valuation questions, we show that if respondents have the possibility to revise their willingness-to-pay answers, sequence effects are mitigated.

Suggested Citation

  • Alberto Longo & David Hoyos & Anil Markandya, 2015. "Sequence Effects in the Valuation of Multiple Environmental Programs Using the Contingent Valuation Method," Land Economics, University of Wisconsin Press, vol. 91(1), pages 20-35.
  • Handle: RePEc:uwp:landec:v:91:y:2015:i:1:p:20-35
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    References listed on IDEAS

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    1. Bateman, Ian J. & Cole, Matthew & Cooper, Philip & Georgiou, Stavros & Hadley, David & Poe, Gregory L., 2004. "On visible choice sets and scope sensitivity," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 71-93, January.
    2. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
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    5. Bateman, Ian J. & Burgess, Diane & Hutchinson, W. George & Matthews, David I., 2008. "Learning design contingent valuation (LDCV): NOAA guidelines, preference learning and coherent arbitrariness," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 127-141, March.
    6. Loomis, John B., 1997. "Panel Estimators To Combine Revealed And Stated Preference Dichotomous Choice Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-13, December.
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    8. Gregory L. Poe & Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 353-365.
    9. Carson Richard T. & Mitchell Robert Cameron, 1995. "Sequencing and Nesting in Contingent Valuation Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 155-173, March.
    10. Timothy Park & John Loomis, 1996. "Joint estimation of contingent valuation survey responses," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(2), pages 149-162, March.
    11. Gregory L. Poe & Eric K. Severance-Lossin & Michael P. Welsh, 1994. "Measuring the Difference (X — Y) of Simulated Distributions: A Convolutions Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 904-915.
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    Cited by:

    1. repec:eee:ecolec:v:147:y:2018:i:c:p:333-342 is not listed on IDEAS
    2. repec:elg:eechap:17527_2 is not listed on IDEAS
    3. Whitehead, John C., 2016. "Plausible responsiveness to scope in contingent valuation," Ecological Economics, Elsevier, vol. 128(C), pages 17-22.
    4. Ho-Young Kim & So-Yeon Park & Seung-Hoon Yoo, 2016. "Public Acceptability of Introducing a Biogas Mandate in Korea: A Contingent Valuation Study," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-16, October.
    5. repec:eee:rensus:v:81:y:2018:i:p1:p:242-249 is not listed on IDEAS
    6. George Parsons & Kelley Myers, 2017. "Fat tails and truncated bids in contingent valuation: an application to an endangered shorebird species," Chapters,in: Contingent Valuation of Environmental Goods, chapter 2, pages 17-42 Edward Elgar Publishing.
    7. repec:aen:journl:ej38-4-oseni is not listed on IDEAS

    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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