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Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis


Schläpfer, Felix (2006). Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis. Ecological Economics, 57(3):415-429.

Abstract

Income effects reported in contingent valuation (CV) studies tend to be much smaller than those found in the literature on collective choice. This disparity has received surprisingly little attention by environmental economists. The present study uses meta-analysis to explore determinants of the presence/absence of a significant income effect in a sample of CV surveys. The probability of significant income effects–controlling for the statistical power of the reported tests–was higher when ‘progressive’ payment vehicles were used and tended to be lower when cost distribution and institutions were well defined, when the choice was formulated as a policy referendum, or when ‘passive-use’ goods were involved. A simple explanation of this pattern in terms of respondent behaviour suggests that the low income effects in contingent valuation surveys may be an artefact of the survey method. Since empirical estimates of the income effect may have important policy implications, this issue deserves attention in future research.

Income effects reported in contingent valuation (CV) studies tend to be much smaller than those found in the literature on collective choice. This disparity has received surprisingly little attention by environmental economists. The present study uses meta-analysis to explore determinants of the presence/absence of a significant income effect in a sample of CV surveys. The probability of significant income effects–controlling for the statistical power of the reported tests–was higher when ‘progressive’ payment vehicles were used and tended to be lower when cost distribution and institutions were well defined, when the choice was formulated as a policy referendum, or when ‘passive-use’ goods were involved. A simple explanation of this pattern in terms of respondent behaviour suggests that the low income effects in contingent valuation surveys may be an artefact of the survey method. Since empirical estimates of the income effect may have important policy implications, this issue deserves attention in future research.

Citations

28 citations in Web of Science®
36 citations in Scopus®
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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:07 Faculty of Science > Institute of Evolutionary Biology and Environmental Studies
Dewey Decimal Classification:570 Life sciences; biology
590 Animals (Zoology)
Uncontrolled Keywords:collective choice, meta-analysis, stated preferences, willingness to pay
Language:English
Date:2006
Deposited On:11 Feb 2008 12:27
Last Modified:05 Apr 2016 12:21
Publisher:Elsevier
ISSN:0921-8009
Publisher DOI:10.1016/j.ecolecon.2005.04.019

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