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Sensitivity of WTP Estimates to Definition of ‘Yes’: Reinterpreting Expressed Response Intensity AgEcon
Kobayashi, Mimako; Rollins, Kimberly S.; Evans, M.D.R..
Willingness to pay (WTP) estimation typically involves some strategy for mapping nondichotomous contingent valuation (CV) responses onto a dichotomous yes/no dependent variable. We propose a new approach to selecting which responses qualify as ‘yes.’ We apply the proposed method to polychotomous CV data for preventative land management programs in the Great Basin. We also estimate WTP using other methods of response recoding found in the literature. By contrasting the results under different approaches, we demonstrate how and why WTP point estimates vary across recoding methods and discuss the comparative advantages of our more generalized recoding approach that is based on predicted probabilities of ‘yes’ responses.
Tipo: Journal Article Palavras-chave: Contingent valuation; Great Basin; Invasive weeds; Land management; Polychotomous format; Response intensity; Response mapping; Wildfire; Environmental Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/59332
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Estimating Private Incentives for Wildfire Risk Mitigation: Determinants of Demands for Different Fire-Safe Actions AgEcon
Kobayashi, Mimako; Zirogiannis, Nikolaos; Rollins, Kimberly S.; Evans, M.D.R..
In this article we develop a general conceptual model of a property-owner’s decision to implement actions to protect his property against wildfire threat. Assuming a prospective-utility maximizing decision maker, we derive a system of demand functions for fire-safe actions that characterizes factors affecting individual decision making. We then empirically estimate the demands for various fire-safe actions functions using survey data of property owners facing a wildfire threat in Nevada. We find that the probability of individuals implementing some fire-safe action increases with value of the residence, previous experience with wildfire, the property being used as the primary residence, positive attitude towards wildfire management methods on public lands,...
Tipo: Conference Paper or Presentation Palavras-chave: Risk and Uncertainty.
Ano: 2010 URL: http://purl.umn.edu/61867
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