What Are the Consequences of Consequentiality?
We offer an empirical test of a theoretical result in the contingent valuation literature. Specifically, it has been argued from a theoretical point of view that survey participants who perceive a survey to be ``consequential'' will respond to questions truthfully regardless of the degree of perceived consequentiality. Using survey data from the Iowa Lakes Project, we test this supposition. Specifically, we employ a Bayesian treatment effect model in which the degree of perceived consequentiality, measured as an ordinal response, is permitted to have a structural impact on willingness to pay (WTP) for a hypothetical environmental improvement. We test the theory by determining if the WTP distributions are the same for each value of the ordinal response. In our survey data, a subsample of individuals were randomly assigned supporting information suggesting that their responses to the questionnaires were important and will have an impact on policy decisions. In conjunction with a Bayesian posterior simulator, we use this source of exogenous variation to identify the structural impacts of consequentiality perceptions on willingness to pay, while controlling for the potential of confounding on unobservables. We find evidence consistent with the ``knife-edge'' theoretical results, namely that the willingness to pay distributions are equal among those believing the survey to be at least minimally consequential, and different for those believing that the survey is irrelevant for policy purposes.
|Date of creation:||05 Mar 2009|
|Date of revision:|
|Publication status:||Published in Journal of Environmental Economics and Management 2010, vol. 59 no. 1, pp. 67-81|
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- Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005.
"The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study,"
Journal of Environmental Economics and Management,
Elsevier, vol. 49(2), pages 330-342, March.
- Bulte, E.H. & Gerking, S.D. & List, J.A. & de Zeeuw, A.J., 2005. "The effect of varying the causes of environmental problems on stated WTP values : Evidence from a field study," Other publications TiSEM f7559812-40bb-4595-b410-2, Tilburg University, School of Economics and Management.
- Aart de Zeeuw & Erwin Bulte & John List & Shelby Gerking, 2004. "The effect of varying the causes of environmental problems on stated wtp values: Evidence from a field study," Framed Field Experiments 00134, The Field Experiments Website.
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"Using ex ante approaches to obtain credible signals for value in contingent markets: Evidence from the field,"
Framed Field Experiments
00168, The Field Experiments Website.
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- Herriges, Joseph A. & Kling, Catherine L. & Liu, Chih-Chen & Tobias, Justin, 2009.
"What Are the Consequences of Consequentiality?,"
Staff General Research Papers
13034, Iowa State University, Department of Economics.
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