Testing for Consistency in Tourists' Willingness to Pay for New Nature Reserves in the Gulf of Morbihan (France)
In this paper, we develop an empirical test of consistency in contingent willingness to pay (WTP) responses, which is based on the following a priori expectation. In economics, when an individual considers paying for public goods, his decision to pay, and his WTP are based on utility-maximising behaviour. Accordingly, supposing other factors are identical, if individual A expresses greater interest in paying for public goods in general than individual B, that is because A receives more benefits from the use and/or the non-use of these goods than B. Continuing with this logic, if both individuals are asked about their WTP for a precise public good, A should logically be more likely to pay and should be willing to pay more than B. Thus, the test consists in measuring the degree to which people are likely to give money for public goods in general, and including it as a covariate in WTP models for the specific public good. If this covariate is significantly positive, then WTP responses are considered consistent. If this is not the case, then future research might focus on motives behind inconsistent WTP responses. To assess the robustness of the test, we consider 3 situations 1) the covariate is exogenous 2) it is endogenous and uncorrelated with the choice to pay or not for the specific good 3) it is endogenous and correlated with this choice. Using a contingent valuation study estimating tourists’ willingness to pay for future nature reserves in the Gulf of Morbihan, we find that WTP responses are consistent in all situations considered.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Langford, Ian H. & Bateman, Ian J., 1996.
"Elicitation and truncation effects in contingent valuation studies,"
Elsevier, vol. 19(3), pages 265-267, December.
- Bateman, Ian J. & Langford, Ian H. & Turner, R. Kerry & Willis, Ken G. & Garrod, Guy D., 1995. "Elicitation and truncation effects in contingent valuation studies," Ecological Economics, Elsevier, vol. 12(2), pages 161-179, February.
- Ham, John C, 1982.
"Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment,"
Review of Economic Studies,
Wiley Blackwell, vol. 49(3), pages 335-54, July.
- John C. Ham, 1980. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," Working Papers 521, Princeton University, Department of Economics, Industrial Relations Section..
- Stephen D. Reiling & Kevin J. Boyle & Marcia L. Phillips & Mark W. Anderson, 1990. "Temporal Reliability of Contingent Values," Land Economics, University of Wisconsin Press, vol. 66(2), pages 128-134.
- Elisabetta Strazzera & Margarita Genius & Riccardo Scarpa & George Hutchinson, 2003. "The Effect of Protest Votes on the Estimates of WTP for Use Values of Recreational Sites," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(4), pages 461-476, August.
- Whitehead John C. & Blomquist Glenn C. & Hoban Thomas J. & Clifford William B., 1995. "Assessing the Validity and Reliability of Contingent Values: A Comparison of On-Site Users, Off-Site Users, and Non-users," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 238-251, September.
- Alberini, Anna & Cropper, Maureen & Fu, Tsu-Tan & Krupnick, Alan & Liu, Jin-Tan & Shaw, Daigee & Harrington, Winston, 1997. "Valuing Health Effects of Air Pollution in Developing Countries: The Case of Taiwan," Journal of Environmental Economics and Management, Elsevier, vol. 34(2), pages 107-126, October.
- M. Morrison & R. Blamey & J. Bennett, 2000. "Minimising Payment Vehicle Bias in Contingent Valuation Studies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 16(4), pages 407-422, August.
- Alfonso Miranda & Sophia Rabe-Hesketh, 2006. "Maximum likelihood estimation of endogenous switching and sample selection models for binary, ordinal, and count variables," Stata Journal, StataCorp LP, vol. 6(3), pages 285-308, September.
- Lyssenko, Nikita & Martinez-Espineira, Roberto, 2009. "`Been there done that': Disentangling option value effects from user heterogeneity when valuing natural resources with a use component," MPRA Paper 21976, University Library of Munich, Germany, revised 08 Apr 2010.
- K. McConnell* & I. Strand & Sebastián Valdés, 1998. "Testing Temporal Reliability and Carry-over Effect: The Role of Correlated Responses in Test-retest Reliability Studies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(3), pages 357-374, October.
- Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
- Kontoleon, Andreas & Yabe, Mitsuyasu & Darby, Laura, 2005. "Alternative Payment Vehicles in Contingent Valuation: The Case of Genetically Modified Foods," MPRA Paper 1827, University Library of Munich, Germany.
- Ryan, Mandy & San Miguel, Fernando, 2000. "Testing for consistency in willingness to pay experiments," Journal of Economic Psychology, Elsevier, vol. 21(3), pages 305-317, June.
- Garcia, Serge & Harou, Patrice & Montagné, Claire & Stenger, Anne, 2009. "Models for sample selection bias in contingent valuation: Application to forest biodiversity," Journal of Forest Economics, Elsevier, vol. 15(1-2), pages 59-78, January.
- Baral, Nabin & Stern, Marc J. & Bhattarai, Ranju, 2008. "Contingent valuation of ecotourism in Annapurna conservation area, Nepal: Implications for sustainable park finance and local development," Ecological Economics, Elsevier, vol. 66(2-3), pages 218-227, June.
- Ian Bateman & Ian Langford, 1997. "Non-users' Willingness to Pay for a National Park: An Application and Critique of the Contingent Valuation Method," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 571-582.
- Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
- Jerrell Richer, 1995. "Willingness To Pay For Desert Protection," Contemporary Economic Policy, Western Economic Association International, vol. 13(4), pages 93-104, October.
- Pouta, Eija, 2004. "Attitude and belief questions as a source of context effect in a contingent valuation survey," Journal of Economic Psychology, Elsevier, vol. 25(2), pages 229-242, April.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:114378. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.