Table of Contents

The International Handbook on Non-Market Environmental Valuation

The International Handbook on Non-Market Environmental Valuation

Elgar original reference

Edited by Jeff Bennett

Non-market environmental valuation (NMEV) is undergoing a period of increased growth in both application and development as a result of increasing recognition of the role of economics in environmental policy issues. Against this backdrop, The International Handbook on Non-Market Environmental Valuation brings together world leaders in the field to advance the development and application of NMEV as a tool for policy-making.

Chapter 6: Testing the Robustness of Contingent Valuation Estimates of WTP to Survey Mode and Treatment of Protest Responses

John Loomis, Armando González-Cabán, Joseph Champ and John Downing

Subjects: economics and finance, environmental economics, valuation, environment, environmental economics, valuation


John Loomis, Armando González-Cabán and Joseph Champ1 INTRODUCTION Over the past four decades the contingent valuation method (CVM) has become a technique frequently used by economists to estimate willingnessto-pay (WTP) for improvements in environmental quality and protection of natural resources. The CVM was originally applied to estimate recreation use values (Davis, 1963; Hammack and Brown, 1974) and air quality (Brookshire et al., 1982; Randall et al., 1974). In the second decade the CVM was extended to valuing the general public’s option and existence values of environmental improvements (Walsh et al., 1984). As part of this evolution, the overall design of CVM studies now attempts to construct a market for the public good (Carson, 1991). As such, a typical CVM survey describes the public good to be valued, how the good will be paid for (that is, payment vehicle), the WTP question format (that is, open ended or closed ended) and a rule for deciding whether the good will be supplied (for example, majority rule in a referendum or total benefits exceed total cost). Each of these design elements has received substantial testing to determine whether the CVM WTP estimates are sensitive to the payment vehicle or WTP question format (Boyle, 2003). The key concern of CVM regarding the validity of the WTP estimates has also received extensive testing from the early days of CVM (Bishop and Heberlein, 1979) to the more recent (Murphy et al., 2005). Survey Mode The CVM relies more heavily on survey research than many...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information