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Estimating willingness-to-pay with random valuation models : an application to Lake Sevan, Armenia

Author

Listed:
  • Wang,Hua
  • Laplante, Benoit
  • Xun Wu
  • Meisner, Craig

Abstract

This paper presents a case study of willingness-to-pay (WTP) estimation using random valuation models. A contingent valuation survey was conducted in Yerevan, Armenia to estimate people's WTP for the protection of Lake Sevan. Three elicitation formats-open-ended, closed-ended, and the stochastic payment card (SPC) approach-were used with split random samples. WTP models with heterogeneous errors were constructed and estimated with the survey data. The SPC approach produces a higher estimation of the mean WTPthan both the open-ended and closed-ended approaches, while results from the open-ended and closed-ended elicitation formats are similar. Furthermore, contrary to research findings obtained in the United States, this study finds higher WTP estimations with mail surveys than with personal interviews.

Suggested Citation

  • Wang,Hua & Laplante, Benoit & Xun Wu & Meisner, Craig, 2004. "Estimating willingness-to-pay with random valuation models : an application to Lake Sevan, Armenia," Policy Research Working Paper Series 3367, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3367
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Halkos, George, 2012. "The use of contingent valuation in assessing marine and coastal ecosystems’ water quality: A review," MPRA Paper 42183, University Library of Munich, Germany.
    2. John E. Ataguba & Hyacinth E. Ichoku & William M. Fonta, 2008. "Estimating the willingness to pay for community healthcare insurance in rural Nigeria," Working Papers PMMA 2008-10, PEP-PMMA.
    3. William Fonta & Hyacinth Ichoku & Kanayo Ogujiuba, 2010. "Estimating willingness to pay with the stochastic payment card design: further evidence from rural Cameroon," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 12(2), pages 179-193, April.
    4. Hyacinth Ichoku & William Fonta & Abbi Kedir, 2009. "Measuring individuals’ valuation distributions using a stochastic payment card approach: application to solid waste management in Nigeria," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(3), pages 509-521, June.
    5. World Bank Group, 2016. "Valuing Water Resources in Turkey," World Bank Other Operational Studies 25291, The World Bank.

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