Detailed vs. fuzzy information in non-market valuation studies: the role of familiarity

Abstract

We apply a split-sample contingent valuation survey to test whether the level of ecological information affects the willingness to pay (WTP) and valuation uncertainty for improved water quality. For respondents who are unfamiliar with water quality problems, the WTP is significantly different between the sample that received detailed ecological information and the sample that received fuzzy information. This study also provides new empirical evidence for the counterfactual; in a situation with high familiarity, more information does not affect mean WTP. The main recommendation to future valuation practice is to provide detailed ecological information in the case when many respondents are unfamiliar with the good. The level of information did not influence valuation uncertainty.