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Estimating the Benefits to Florida Households from Avoiding Another Gulf Oil Spill Using the Contingent Valuation Method: Internal Validity Tests with Probability-based and Opt-in Samples

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Listed:
  • John C. Whitehead
  • Andrew Ropicki
  • John Loomis
  • Sherry Larkin
  • Tim Haab
  • Sergio Alvarez

Abstract

This paper evaluates the importance of contingent valuation method data quality by examining differences in results between probability-based and opt-in internet samples. Our data is from a survey estimating passive use losses associated with the BP/Deepwater Horizon oil spill to Florida residents. Several internal tests of validity are conducted. We find that the willingness to pay estimates from the opt-in sample may be biased upwards and only the probability-based sample data pass the scope test. In general, we conclude that the probability-based sample data is of higher quality. Key Words: contingent valuation, scope test, probability-based sample data; opt-in sample data

Suggested Citation

  • John C. Whitehead & Andrew Ropicki & John Loomis & Sherry Larkin & Tim Haab & Sergio Alvarez, 2021. "Estimating the Benefits to Florida Households from Avoiding Another Gulf Oil Spill Using the Contingent Valuation Method: Internal Validity Tests with Probability-based and Opt-in Samples," Working Papers 21-13, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:21-13
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp2113.pdf
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    1. Now we just wait for the comment from Desvousges, Mathews and Train
      by John Whitehead in Environmental Economics on 2023-03-03 10:10:00

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    Cited by:

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    2. Jerrod M. Penn & Daniel R. Petrolia & J. Matthew Fannin, 2023. "Hypothetical bias mitigation in representative and convenience samples," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 721-743, June.

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    More about this item

    Keywords

    contingent valuation; scope test; probability-based sample data; opt-in sample data;
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    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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