DICHOTOMOUS-CHOICE, CONTINGENT-VALUATION QUESTIONS: FUNCTIONAL FORM IS IMPORTANT

A variety of questioning formats have been used in contingent-valuation studies, with dichotomous-choice questions becoming the preferred format. However, as with any empirical technique, continued applications raise questions that require attention if the credibility of the procedure is to be maintained. It is shown that estimated Hicksian surplus can be substantially affected by the selection of a functional form when analyzing responses to dichotomous-choice questions. Given that theory, intuition, and empiricism all play a role in developing these estimates, several maxims are suggested for evaluating and/or mitigating such effects in future studies.Research Methods/ Statistical Methods,

DYNAMIC LEARNING AND CONTEXT-DEPENDENCE IN SEQUENTIAL, ATTRIBUTE-BASED CONTINGENT VALUATION

A hybrid stated-preference model is developed that combines the referendum contingent valuation response format with an experimentally designed set of attributes. A sequence of valuation questions is asked to a random sample in a mail-out mail-back format. Econometric analysis shows that willingness to pay for policy attributes is formed dynamically.Research Methods/ Statistical Methods,

NEEDLES IN A HAYSTACK: COST-EFFECTIVE SAMPLING OF MARINE SPORT ANGLERS

An obstacle to conducting economic studies of marine sport anglers is the difficulty and expense in drawing a representative sample. Unlike inland fishing, where licenses are required in all states, only selected states require a marine sport fishing license and these licenses usually only cover selected marine fishing activities. Currently, there are no low cost methods of obtaining a representative sample of marine anglers because they are generally not licensed, use multiple access points, and represent a small proportion of the general population. The difficulty and expense of drawing a representative sample may have stifled attempts to study marine anglers. We test alternative sampling strategies by comparing the characteristics of a representative sample of experienced marine anglers with the characteristics of two other samples using multivariate and univariate analysis techniques. We conclude a sample of marine anglers drawn from the population of licensed inland anglers is not significantly different from the representative sample of experienced marine anglers.Resource /Energy Economics and Policy,

Fish Consumption, Exposure to Dioxin, and Health Risk Assessments

Human health issues have become the focus of much of the environmental debate that continues to occur daily in theU.S.InMaine, dioxin, a by-product of the kraft paper making process, has gathered its share of attention in recent months.UniversityofMaineresource economist Kevin Boyle discusses the difficulties associated with assessing human health risks relative to the consumption of fish tissue potentially contaminated with dioxin. He cautions state regulators to avoid overestimating the potential risks associated with human exposure to toxic substances such as dioxin

WOULD PEOPLE RATHER PAY TAXES OR TRADE TAXES TO PAY FOR ENVIRONMENTAL GOODS? A GROUND WATER QUALITY CASE

The potential sensitivity of environmental resource valuation to payment vehicles is of interest to researchers and decision-makers involved in estimating and applying these numbers. A conceptual model is developed which provides insight into how the different payment vehicles of a special tax and a tax reallocation affects the willingness to pay (WTP) for environmental goods. Hypothesis testing using contingent valuation data suggests WTP with a tax reallocation is higher than WTP with a special tax for ground water quality protection in Georgia and Maine.Environmental Economics and Policy, Public Economics,

Policy-Instrument Choice and Benefit Estimates for Climate-Change Policy in the United States

This paper provides the first willingness-to-pay (WTP) estimates in support of a national climate-change policy that are comparable with the costs of actual legislative efforts in the U.S. Congress. Based on a survey of 2,034 American adults, we find that households are, on average, willing to pay between $79 and$89 per year in support of reducing domestic greenhouse-gas (GHG) emissions 17 percent by 2020. Even very conservative estimates yield an average WTP at or above $60 per year. Taking advantage of randomized treatments within the survey valuation question, we find that mean WTP does not vary substantially among the policy instruments of a cap-and-trade program, a carbon tax, or a GHG regulation. But there are differences in the sociodemographic characteristics of those willing to pay across policy instruments. Greater education always increases WTP. Older individuals have a lower WTP for a carbon tax and a GHG regulation, while greater household income increases WTP for these same two policy instruments. Republicans, along with those indicating no political party affiliation, have a significantly lower WTP regardless of the policy instrument. But many of these differences are no longer evident after controlling for respondent opinions about whether global warming is actually happening.

A META ANALYSIS OF CONTINGENT VALUES FOR GROUNDWATER QUALITY IN THE UNITED STATES

This paper provides an overview and a meta analysis of existing US contingent valuation studies of groundwater quality. Using 108 observations from 14 studies, core economic variables, risk variables, and elicitation effects are found to systematically influence groundwater values. Other research design features are also investigated.Resource /Energy Economics and Policy,

ON THE FRONTIER OF GENERATING REVEALED PREFERENCE CHOICE SETS: AN EFFICIENT APPROACH

Deterministic rules for generating choice sets are often employed by analysts confronting universal sets with large numbers of alternatives. For destination choice analysis, site exclusion rules defined by travel time, distance, or quality have a behavioral appeal, yet are fundamentally limited by their one-dimension scope. To remedy this shortcoming while maintaining the concept that trips require costly inputs to yield utility generating outputs, we develop and test an exclusion rule for generating choice sets defined by efficiency measures derived from stochastic frontier econometric models. Choice set composition, site choice efficiency and probability of selection, and consumer surplus are compared with results obtained under alternative exclusion rules.Research Methods/ Statistical Methods,

Validation of empirical measures of welfare change: comment

In an excellent article from a recent issue of this journal, Sellar, Stoll and Chavas (1985) make a technical error which causes them to misstate their closed-ended estimates of willingness to pay. Truncation of the estimated cummulative distribution function must we made explicit in compution of willingness to pay.nonmarket valuation; contingent valuation; stated preferences; welfare evaluation; willingness to pay