IDEAS home Printed from https://ideas.repec.org/p/rep/wpaper/2005-06.html
   My bibliography  Save this paper

Divergence between WTA and WTP Revisited: Livestock Grazing on Public Range

Author

Listed:
  • Lili Sun
  • G. Cornelis van Kooten
  • Graham Voss

Abstract

The research reported here provides further empirical support for the contention that there is a divergence between WTA and WTP. The conclusion is based on results from a 2002 survey of Nevada ranchers that asked about willingness to pay for public forage and WTA compensation to part with grazing rights. WTP and WTA are estimated simultaneously, with the estimators used to demonstrate a statistically significant divergence between WTP and WTA. The simultaneous estimation allows us to identify ranch characteristics that influence the discrepancy in valuations. Ranch size, public grazing allotment, financial distress, and long term commitment to ranching are all significant influences on the disparity. We interpret these results both with respect to general differences in welfare measures and with respect to ranch policy.

Suggested Citation

  • Lili Sun & G. Cornelis van Kooten & Graham Voss, 2005. "Divergence between WTA and WTP Revisited: Livestock Grazing on Public Range," Working Papers 2005-06, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
  • Handle: RePEc:rep:wpaper:2005-06
    as

    Download full text from publisher

    File URL: http://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2005-06.pdf
    File Function: Final version, 2005
    Download Restriction: no

    References listed on IDEAS

    as
    1. Devadoss, Stephen, 2008. "An Evaluation of Canadian and U.S. Policies of Log and Lumber Markets," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    contingent valuation methods; dichotomous choice surveys; WTA versus WTP; grazing rights and public forage;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    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:rep:wpaper:2005-06. 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: (G.C. van Kooten). General contact details of provider: http://edirc.repec.org/data/devicca.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.