IDEAS home Printed from https://ideas.repec.org/p/een/eenhrr/0917.html
   My bibliography  Save this paper

What'’s Appropriate? Investigating the Effects of Attribute Level Framing and Changing Cost Levels in Choice Experiments

Author

Listed:
  • Marit E Kragt

    () (Crawford School of Public Policy, The Australian National University, Australia)

  • Jeff Bennett

    () (Crawford School of Public Policy, The Australian National University, Australia)

Abstract

Choice Experiments w are increasingly used to estimate the values of non-market goods and services. A cost attribute is typically included in a CE questionnaire to enable the estimation of monetary values for changes in the non-market attributes presented. Notwithstanding the central importance of the cost attribute, limited research has been undertaken on the impacts of varying the levels of the cost attribute on respondents’ choices in CE surveys. Furthermore, the ways in which the levels of non-market attributes are described to respondents - the ‘attribute frame’ - may affect value estimates. The challenge for CE practitioners is to identify the ‘appropriate’ attribute frames and range in cost levels. In this report, the impacts of changing cost levels, the impacts of describing non-market attributes as absolute levels or in relative terms, and of using positive versus negative contextual descriptions of attribute levels are assessed. These tests were performed using data from a CE on catchment management in Tasmania, Australia. Contrary to a priori expectations, including explicit information cues about relative attribute levels in the choice sets is found not to affect stated preferences. The data reveal significant differences in value estimates when attribute levels are described as a ‘loss’, compared to a ‘presence’. Furthermore, comparisons between different split samples provide evidence that respondents’ preferences are impacted by changing the level of the cost attribute, with higher levels leading to significantly higher estimates of WTP for one of the three environmental attributes.

Suggested Citation

  • Marit E Kragt & Jeff Bennett, 2009. "What'’s Appropriate? Investigating the Effects of Attribute Level Framing and Changing Cost Levels in Choice Experiments," Environmental Economics Research Hub Research Reports 0917, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University, revised Sep 2009.
  • Handle: RePEc:een:eenhrr:0917
    as

    Download full text from publisher

    File URL: https://crawford.anu.edu.au/research_units/eerh/pdf/EERH_RR17.pdf
    Download Restriction: no

    More about this item

    Keywords

    Choice experiments; Mixed Logit models; Environmental valuation; Attribute framing; Cost bias;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:een:eenhrr:0917. 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: (CAP Web Team). General contact details of provider: http://edirc.repec.org/data/asanuau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.