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Contingent valuation and real referendum behaviour

  • Felix Schlapfer
  • Anna Roschewitz
  • Nick Hanley

This paper compares contingent values for a hypothetical landscape protection programme with respondents’ voting behaviour in an actual referendum. We use the example of a proposed increase of expenditures for landscape protection in the canton of Zurich, Switzerland. In particular we examine (i) CVM bid magnitudes of the different voter groups, (ii) relationships between qualitative response categories, (iii) consistency of responses assuming tax increases are known, and (iv) associations with socio-economic characteristics. Results suggest a strong upward bias of hypothetical values, possibly indicating that many respondents failed to realistically consider their budget constraints in the hypothetical choice situation.

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Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2001_8.

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Handle: RePEc:gla:glaewp:2001_8
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  1. Rubinfeld, Daniel L, 1977. "Voting in a Local School Election: A Micro Analysis," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 30-42, February.
  2. Deacon, Robert T & Shapiro, Perry, 1975. "Private Preference for Collective Goods Revealed Through Voting on Referenda," American Economic Review, American Economic Association, vol. 65(5), pages 943-55, December.
  3. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, vol. 50(5), pages 1183-1205, September.
  4. Ethier, Robert G. & Poe, Gregory L. & Schulze, William D. & Clark, Jeremy, 1997. "A Comparison Of Hypothetical Phone And Mail Contingent Valuation Responses For Green Pricing Electricity Programs," Working Papers 7245, Cornell University, Department of Applied Economics and Management.
  5. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
  6. John A. Fox & Jason F. Shogren & Dermot J. Hayes & James B. Kliebenstein, 1998. "CVM-X: Calibrating Contingent Values with Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 455-465.
  7. Frykblom, Peter, 1997. "Hypothetical Question Modes and Real Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 275-287, November.
  8. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
  9. Vivien Foster & Ian J. Bateman & David Harley, 1997. "Real And Hypothetical Willingness To Pay For Environmental Preservation: A Non-Experimental Comparison," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 123-137.
  10. John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1996. "Improving Validity Experiments of Contingent Valuation Methods: Results of Efforts to Reduce the Disparity of Hypothetical and Actual Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 72(4), pages 450-461.
  11. Kalle Seip & Jon Strand, 1992. "Willingness to pay for environmental goods in Norway: A contingent valuation study with real payment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(1), pages 91-106, January.
  12. Leonard Shabman & Kurt Stephenson, 1996. "Searching for the Correct Benefit Estimate: Empirical Evidence for an Alternative Perspective," Land Economics, University of Wisconsin Press, vol. 72(4), pages 433-449.
  13. Cummings, Ronald G & Harrison, Glenn W & Rutstrom, E Elisabet, 1995. "Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible?," American Economic Review, American Economic Association, vol. 85(1), pages 260-66, March.
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