THE VALUE OF KENTUCKY’S EQUINE INDUSTRY TO KENTUCKY STATE RESIDENTS: A CONTINGENT VALUATION STUDY

Abstract

OF THESIS THE VALUE OF KENTUCKY’S EQUINE INDUSTRY TO KENTUCKY STATE RESIDENTS: A CONTINGENT VALUATION STUDY This thesis examines whether the presence of the equine industry improves the quality of life for Kentucky residents; the contingent valuation method (CV) is used to estimate the value Kentucky residents place on the presence of the equine industry in Kentucky. The data comes from Phase II of the 2012 Kentucky Equine Survey of Kentucky residents. Seven thousand seven hundred fiftyseven surveys were distributed throughout the one hundred twenty counties in Kentucky. Four versions of the survey were distributed; the versions varied by the percentage decline in the equine industry. Surveys distributed to Bluegrass counties were distinguished by the color of paper the survey was printed on; the paper color identified the housing quartile of the respondent. Each version of the survey included a dichotomous choice experiment predicting a percentage decline in the equine industry. A payment card willingness-to-pay experiment followed the dichotomous choice experiment. Attitude questions, demographic data, and a consequentiality question were included at the end of the survey. The goal of the study was to identify if and in what way Kentucky residents’ lifestyle, beliefs, and knowledge of the equine industry influence their willingness to avoid a loss of the equine industry.