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Public support for hosting the Olympic Summer Games in Germany: The CVM approach

Author

Listed:
  • Pamela Wicker
  • John C. Whitehead
  • Daniel S. Mason
  • Bruce K. Johnson

Abstract

Cities throughout the world continue to weigh the merits of hosting major sport events, including the Olympic Games. These events are considered desirable due to a range of benefits, including economic and/or tourism development. In addition, previous research has shown that hosting the Olympics may confer intangible benefits for cities and their residents. This paper presents the results of a contingent valuation method estimate of the monetary value of intangible benefits to Germans of hosting the Olympic Summer Games. In a nationwide online survey 6,977 respondents were asked if they would support a referendum to host the Games. The survey employed a payment card format containing monthly tax amounts to elicit willingness-to-pay to finance the Games over a five-year-period. In the weighted sample, 72 percent expressed a positive willingness-to-pay. Among those with a positive willingness-to-pay, average willingness-to-pay was €47. The results from grouped data hurdle models showed that various intangible benefits (e.g. pride and happiness in sporting success; increased German prestige) and policy consequentiality had a significant positive effect on willingness-to-pay. The findings have implications for policy makers since they show what population groups are more supportive of hosting the Games. Key Words: Contingent Valuation Method; Willingness-to-pay; Olympic Games; Public goods; Sport event

Suggested Citation

  • Pamela Wicker & John C. Whitehead & Daniel S. Mason & Bruce K. Johnson, 2015. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Working Papers 15-06, Department of Economics, Appalachian State University.
  • Handle: RePEc:apl:wpaper:15-06
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp1506.pdf
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    References listed on IDEAS

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    1. I'm thinking about changing the name of this blog to "Environmental and Urban Economics"
      by John Whitehead in Environmental Economics on 2016-09-14 15:44:20

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    Cited by:

    1. John C. Whitehead & Pamela Wicker, 2017. "Using Willingness to Travel to Estimate the Monetary Value of Intangible Benefits Derived from Active Sport Event Tourism," Working Papers 17-03, Department of Economics, Appalachian State University.
    2. repec:gam:jsusta:v:10:y:2018:i:4:p:1191-:d:141164 is not listed on IDEAS
    3. Bakkenbüll, Linn-Brit & Dilger, Alexander, 2016. "Willingness to pay and accept for hosting Olympic Games in Germany," Discussion Papers of the Institute for Organisational Economics 11/2016, University of Münster, Institute for Organisational Economics.
    4. Brad R. Humphreys & Bruce K. Johnson & John C. Whitehead, 2017. "Validity and Reliability of Contingent Valuation and Life Satisfaction Measures of Welfare: An Application to the Value of National Olympic Success," Working Papers 17-08, Department of Economics, Appalachian State University.

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