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Testing for Temporal Reliability in Contingent Valuation with Time for Changes in Factors Affecting Demand

  • John C. Whitehead
  • Thomas J. Hoban

We develop a temporal reliability test of the contingent valuation method. Separate random samples were administered the same telephone survey five years apart. In the retest, respondents have less favorable attitudes toward the environment. Given this result, a temporally reliable contingent valuation would find lower willingness to pay. We find that the estimates are temporally reliable. After accounting for attitudes which have changed over the five-year period, values are not significantly different five years apart. This study provides additional evidence that use of the contingent valuation method can provide useful information for environmental policy analysis.

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Paper provided by East Carolina University, Department of Economics in its series Working Papers with number 9613.

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Handle: RePEc:wop:eacaec:9613
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  1. Kopp, Raymond & Smith, V. Kerry & Mitchell, Robert & Presser, Stanley & Ruud, Paul & Hanemann, W. Michael & Krosnick, Jon & Carson, Richard, 1995. "Temporal Reliability of Estimates from Contingent Valuation," Discussion Papers dp-95-37, Resources For the Future.
  2. John C. Whitehead, 1995. "Willingness to Pay for Quality Improvements: Comparative Statics and Interpretation of Contingent Valuation Results," Land Economics, University of Wisconsin Press, vol. 71(2), pages 207-215.
  3. Thomas H. Stevens & homas A. More & Ronald J. Glass, 1994. "Interpretation and Temporal Stability of CV Bids for Wildlife Existence: A Panel Study," Land Economics, University of Wisconsin Press, vol. 70(3), pages 355-363.
  4. Stephen D. Reiling & Kevin J. Boyle & Marcia L. Phillips & Mark W. Anderson, 1990. "Temporal Reliability of Contingent Values," Land Economics, University of Wisconsin Press, vol. 66(2), pages 128-134.
  5. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  6. Kealy, Mary Jo & Montgomery, Mark & Dovidio, John F., 1990. "Reliability and predictive validity of contingent values: Does the nature of the good matter?," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 244-263, November.
  7. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
  8. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
  9. Patterson, David A. & Duffield, John W., 1991. "Comment on Cameron's censored logistic regression model for referendum data," Journal of Environmental Economics and Management, Elsevier, vol. 20(3), pages 275-283, May.
  10. Downing, Mark & Ozuna, Teofilo Jr., 1996. "Testing the Reliability of the Benefit Function Transfer Approach," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 316-322, May.
  11. Loomis, John B., 1990. "Comparative reliability of the dichotomous choice and open-ended contingent valuation techniques," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 78-85, January.
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