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The Effect of Uncertainty on Contingent Valuation Estimates: A Comparison AgEcon
Shaikh, Sabina L.; Sun, Lili; van Kooten, G. Cornelis.
We examine the impact of uncertainty on contingent valuation responses using (1) a survey of Canadian landowners about willingness to accept compensation for converting cropland to forestry and (2) a survey of Swedish residents about willingness to pay for forest conservation. Five approaches from the literature for incorporating respondent uncertainty are used and compared to the traditional RUM model with assumed certainty. The results indicate that incorporating uncertainty has the potential to increase fit, but could introduce additional variance. While some methods for uncertainty are an improvement over traditional approaches, we caution against systematic judgments about the effect of uncertainty on contingent valuation responses.
Tipo: Working or Discussion Paper Palavras-chave: Respondent uncertainty; Willingness to accept; Contingent valuation; Environmental Economics and Policy; Land Economics/Use; Q10; Q15; Q23.
Ano: 2005 URL: http://purl.umn.edu/37025
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