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Payment Certainty in Discrete Choice Contingent Valuation Responses: Results from a Field Validity Test

Author

Listed:
  • Christian A. Vossler

    (Department of Applied Economics and Management, Cornell University)

  • Robert G. Ethier

    (ISO-New England, Holyoke, MA)

  • Gregory L. Poe

    (Department of Applied Economics and Management, Cornell University)

  • Michael P. Welsh

    (Christensen Associates)

Abstract

Two methods for calibrating discrete choice contingent valuation responses—the dichotomous choice with follow-up certainty question method of and the multiple-bounded method of —are evaluated using data from a field validity comparison of hypothetical and actual participation decisions in a green electricity pricing program. Both calibration methods can produce hypothetical participation levels that closely correspond with actual program participation rates. However, the two methods demonstrate procedural variance as they yield significantly different underlying distributions of willingness to pay.

Suggested Citation

  • Christian A. Vossler & Robert G. Ethier & Gregory L. Poe & Michael P. Welsh, 2003. "Payment Certainty in Discrete Choice Contingent Valuation Responses: Results from a Field Validity Test," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 886-902, April.
  • Handle: RePEc:wly:soecon:v:69:4:y:2003:p:886-902
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