Article

Treating respondent uncertainty in contingent valuation: A comparison of empirical treatments

Ecological Economics DOI:10.1016/j.ecolecon.2006.05.016 pp.115-125
Source: OAI

ABSTRACT This research examines 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 random utility 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 can be an improvement over traditional approaches, it is imperative to exercise caution when making systematic judgments about the effect of uncertainty on contingent valuation responses.

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Keywords

approaches
 
contingent valuation responses
 
forest conservation
 
forestry
 
incorporating respondent uncertainty
 
incorporating uncertainty
 
increase fit
 
research examines
 
Swedish residents
 
systematic judgments
 
traditional approaches
 
traditional random utility model