Contingent Valuation Model Research Articles

Determinants of agro-pastoralists’ willingness to pay for improved contagious caprine pleuropneumonia vaccine in Kenya

Animal health care is critical for livestock production especially in arid and semi-arid areas where majority are agro-pastoralists. Contagious caprine pleuropneumonia (CCPP) is a highly contagious and fatal disease which commonly affects goats in arid and semi-arid areas. The government has been the major provider of CCPP vaccine and few large-scale farmers who are licensed and able to purchase directly from the vaccine producer. Although the vaccine is sold to farmers at a subsidized price by the government, its distribution has been characterized by scarcity, irregular and late administration by the authority concerned. It is envisioned that if the willingness to pay for the CCPP vaccine among the agro-pastoralists was high, the sustainability for the vaccine availability and accessibility to everyone will be assured. This study was conducted in Kajiado and Taita Taveta counties where 323 households were sampled; thus, 276 households who were aware of the CCPP were considered for the analysis. Double-bounded dichotomous choice contingent valuation model was used to elicit agro-pastoralists’ willingness to pay for the improved CCPP vaccine with new attributes. The model revealed that off-farm income, membership to a group, previous experience on CCPP attack on goats and access to extension services positively influenced households’ willingness to pay for the improved CCPP vaccine. The results implied that provision of extension services by the government through promotion of public awareness on CCPP and on the benefit of vaccination will motivate farmers to willingly pay for vaccination services. This can be done through enhanced trainings, seminars and demonstrations to the village level, encouraging formation of groups which facilitates information sharing between agro-pastoralists as awareness and knowledge can drive the demand for the improved CCPP vaccine.

Willingness to Pay for Improved Solid Waste Management in Itahari, Sunsari, Nepal

Solid waste management (SWM) is a widespread problem in urban areas of developed and underdeveloped countries. Unplanned urbanization, rapid population growth, and migration of people from rural to urban areas are the leading causes for the problem of SWM in the major cities of Nepal. Inadequate services for solid waste collection can lead to environmental problems, pollution, health risks, and economic burdens for the society. Understanding the willingness to pay (WTP) of residents for improved solid waste collection is crucial for deciding effective pricing policies and waste collection techniques. In this context, the main aim of the study is to examine the WTP for the services of improved SWM in the study area. Using simple random sampling method, 377 households were taken as a sample to estimate the WTP for SWM through the Contingent Valuation Model (CVM) and Tobit regression. A field survey was conducted to collect the required data and information related to the WTP of households through the structured questionnaire. The study found that 83.55 percent of respondents would pay for improved SWM services, and the willingness to pay varies from NRs. 50 to NRs.500 per month. Tobit regression results identified the factors influencing WTP for improved SWM in the study area. The factors of gender, ownership of the house, education, profession, income level, and service satisfaction are statistically significant in determining the WTP for SWM.

Does empowerment influence women’s willingness to pay for integrated pest management practices? A case study of mango growers in Zambia

Mango is an important fruit crop in sub-Saharan Africa (SSA), including Zambia, due to its nutritional value and contribution to food security. However, the invasive and mango-infesting fruit fly is a significant constraint in mango production. Therefore, icipe and partners developed and disseminated the integrated pest management package to curb this menace. The current study uses household-level data from 325 smallholder mango-growing households from selected regions in Zambia to evaluate how empowerment affects women's willingness to pay (WTP) for an Integrated Pest Management (IPM) package for the suppression of mango-infesting fruit flies. We used a double-bounded contingent valuation model to determine the association between Project-Level Women’s Empowerment in Agriculture Index (pro-WEAI), other social-economics factors, and WTP. The results show that women’s empowerment status positively and significantly increased the likelihood of considering a higher bid for the IPM package. Other factors affecting women’s WTP for the IPM package were women's education level, access to extension services, non-farm occupation, and household income from mangoes, with a positive and significant influence on their WTP. However, distance to the input market, perception of the effectiveness of current fruit fly management methods, and level of mango loss due to fruit flies negatively influenced WTP for the IPM package. Empowering women, especially increasing their access to extension services, and providing livelihood alternatives would increase their uptake of pest management technologies. Efforts to lower women’s domestic workloads, boost their finances, and sensitize others in the community to promote women’s freedom of movement would be vital to empowering women hence increasing their uptake of new agricultural innovations.

Air Pollution in Urban Africa: Understanding Attitudes and Economic Valuation in the Case of Dakar, Senegal

The degradation of air quality is a real concern in Africa, as pollution levels are consistently above commonly accepted thresholds, and yet, very little is known about individual attitudes and the extent to which improved air quality is valued in the context of rapid urbanization. This research proposes to analyze the willingness to pay for reduced air quality in African urban areas. Using survey data from 427 individuals in Dakar (Senegal) between February and May 2019, a double-bound, dichotomous contingent valuation model is developed. The results first suggest that 70% of individuals are indeed willing to pay an average of CFA Francs 3114.8 (USD 5.6) per month to contribute to air quality improvement, and the corresponding value of a life year gained is estimated at CFA Francs 35,550.2 (USD 80) at least. The results also point to a great deal of heterogeneity in individual valuation schemes, as they vary with the perceptions of life expectancy gains, payment vehicles, and various individual characteristics, and also across months with different levels of temperatures. These findings could constitute important inputs into public strategies aimed at improving air quality in the African context.

Willingness to Pay for Safe Chicken Meat in Bangladesh: A Contingent Valuation Approach

The poultry meat industry is primarily dominated by broilers, and conventional broiler meat is claimed to be malicious to human health and environment since it is produced using hazardous feeds and other dietary supplements. This study aimed to evaluate consumers’ willingness to pay (WTP) for safe broiler chicken meat following a contingent valuation model (CVM). Also, consumers’ consumption and different types of perceptions on safe broiler meat were assessed from the data collected among 300 consumers in Bangladesh. Consumers’ health and environmental perception of safe broiler meat are found to be high, indicating that they are more concerned about these attributes in the case of consuming broiler meat. The results reveal that conventional broiler meat losses its appeal to consumers after a certain income level and is mainly consumed by lower- and middle-income groups. This study divulges a unanimous demand for safe broiler meat among the consumers who intend to consume about 36% higher than their present consumption level if the availability was ensured in their local market. The average WTP premium for safe broiler meat is estimated to be about BDT 39.87 per kg. The consumers’ WTP is positively influenced by their education, income level, the current consumption of broiler chicken meat, health perception, and taste and nutrition perception. This study recommends meat producers, entrepreneurs, and farmers adjust their production and marketing plans by incorporating suitable quality control procedures to meet the unfilled consumer demand for safer broiler meat. Besides, slow-growing safer broiler chicken needs to be introduced to improve meat’s taste and nutritional aspects.

Household Effective Demand for Electricity in Ghana: Analysis and Implication for Tariffs

Outcomes of most developing country projects to secure inclusive growth through electricity provision appear to hinge on available information regarding households’ response to electricity. To provide the needed information for policy, this study assessed the determinants of household electricity demand and estimated the mean willingness to pay for electricity by households in Ghana. The study used a Contingent Valuation modelling procedure involving over 3000 households to derive an effective demand function for electricity in Ghana. This was done through a national household survey. A mathematical programming analytical procedure was employed to fully account for the block pricing tariff system used in Ghana. The study found that Ghanaian households are willing to pay a monthly mean electricity tariff of 50.40 Ghana cedis (US$11.56), which is lower than the average monthly tariff of 73.67 Ghana cedis (US$16.90) paid by households. Thus, the average tariff paid by households monthly is 46% higher than the mean willingness to pay. The study also found that the highest impact determinants of demand for electricity in Ghana were affordability of tariffs, usage of electrical appliances, and availability of electricity, respectively. This study employs a mathematical programming procedure to determine the mean willingness to pay for electricity in Ghana. This procedure is theoretically more robust than the often-used differential calculus approach since it incorporates the block pricing of electricity in Ghana, which the calculus approach ignores. Also, it uses the largest and most inclusive known sample, specifically designed to elicit households’ willingness to pay for electricity in Ghana. The study is also unique in its findings.

Landowner Willingness to Accept Monetary Compensation for Managing Forests for Ecosystem Services in the Southern United States

Abstract Distributional specifications of the willingness-to-accept function affect the accuracy of welfare estimates when the contingent valuation model includes unsure responses. By exponentiating the bid variable, we implemented an improved methodological approach to estimate four discrete choice models reflecting treatment of unsure responses. Landowners required an average compensation of $93 acre−1 year−1 to participate in a 10-year conservation program. The probability of participation was positively influenced by payment amount, concern about wildlife habitat loss, contact frequency with the Natural Resources Conservation Service, and education level. Findings will help determine regional-level budgets for various conservation scenarios facilitating an increased production of ecosystem services. Study Implications Conservation agencies can decrease landowner uncertainty that arises from limited information about conservation programs and motivate landowners to enroll in a conservation program facilitating an increased production of ecosystem services by offering adequate monetary incentives. Conservation agencies can provide similar financial compensation for conservation of bottomland hardwoods and pine stands but will most likely need to offer greater compensation for the protection of forests prone from impacts by wildfires, hurricanes, and tornadoes. Available funding should be prioritized for conservation of critical habitats and freshwater sources vulnerable to land disturbances.

How Much are Iranian Men Willing to Pay for Exemption from Military Service?

Abstract Compulsory military service, due to its timing in the lives of men (at a young age, which is the key period for increasing human capital) and its length (in many cases, about a year and a half to two years), implies a significant cost (explicit or implicit) for them. Individual costs incurred as a result of compulsory military service is an important aspect to consider when measuring the economic and social costs of enforcing conscription. Compulsory military service has been a part of Iranian government policy since 1925. Accordingly, an attempt to estimate the cost for men in Iran is the main subject of this paper. We will estimate the willingness of men to pay for exemption from compulsory military service based on the dichotomous choice contingent valuation model (One-and-One-Half Bounded approach). The mean of willingness to pay is estimated at 1.61 billion Rials (38,000 USD) while the median of willingness to pay is 1.64 billion Rials. A calculation of the median of willingness to pay for sub-groups of respondents shows that individuals with an income of more than 70 million Rials (1670 USD) per month have the highest median of willingness to pay, followed by those with a Ph.D. degree, and finally, undergraduates are individuals with the lowest median of willingness to pay.

Socio-Demographic Predictors of Willingness to Pay for Premium of National Health Insurance: A Cross-sectional Survey of Six Districts in Sierra Leone.

The government of Sierra Leone introduced Social Health Insurance Scheme as a measure to remove financial barriers that beset the people in accessing health to ensure universal coverage. Under this policy, the citizens were encouraged to subscribe to the scheme to avoid out of pocket payment for healthcare at the point of use. This study was conducted to find out the predictors of willingness among the people to pay for health insurance premium. A cross-sectional study design was employed in six selected districts in Sierra Leone. Quantitative data was collected for this study through the use of semi-structured questionnaire with a sample size of 1185 respondents. Data was analysed into descriptive and inferential statistics using the contingent valuation model. Statistical analysis was run at 5% significant level using Stata version 14.0 software. The results showed that majority of the respondent are willing to join and pay a monthly premium of Le 10 000 (US$1.03) with an estimated mean contribution of about Le 14 089 (US$1.44) and the top five predictors of willingness to pay (WTP) were household monthly income, age, district of resident, gender, and educational qualification. The findings on predictors of WTP premium of Sierra Leone National Social Health Insurance (SLeNSHI), suggests that the socio-demographic characteristics of the population are important in premium design and payment. Efforts at improving the socio-economic statuses of the population could be helpful in premium design and payment.

An Assessment of Fans’ Willingness to Pay for Team’s Environmental Sustainability Initiatives

Abstract: The current study aims to understand if sport organizations can utilize environmental sustainability (ES) efforts to increase revenue in addition to saving money. To do this, fans of the Philadelphia Eagles were surveyed. Findings indicate fans were willing to pay an average of US$6.50 in the form of a sustainability fee to help the organization implement an environmental initiative. Furthermore, this study found that nearly none of the prevailing thoughts on predictors of fan behavior significantly positively predicted fans’ willingness to pay an environmental sustainability fee. The findings of the current study challenge the conventional theoretical thinking with respect to fan behavior. Furthermore, respondents in the current study were equally likely to financially support the sustainability efforts of their favorite team no matter their income, loyalty to the team, personal values, or conative loyalty associated with environmental sustainability. Theoretically, the current study advanced the triple bottom line theory, the Contingent Valuation Model, and the Model of Sport Fan Sustainability Behavior.

A comparison of Zayandehrood River water values for agriculture and the environment

AbstractRiver water management is challenging not only since they are open systems with changing physical structures, but also because the water values are mostly unknown over varied sectors. If policymakers grasp water values, water management will be more efficient. This research intends to examine the values of water in agriculture, which receives the most substantial portion of water resources, with the values of water in the environment in Isfahan located in the Zayandehrood River basin of Iran. The consequences of contingent valuation and production function methods revealed that per cubic metre value of water is 13 times higher in the environment than agriculture. The government should reconsider the higher value of the environment despite it is a non‐market value. The contingent valuation model additionally proved that women exhibited 21% more willingness to pay than men in order to protect the environment; however, they are paid less by 36%.

Italian Consumers’ Willingness to Pay for Eucalyptus Firewood

Eucalyptus trees cover about 20 million hectares globally and are used to produce pulp, paper and firewood for domestic uses. From an environmental perspective, these trees have fewer impacts than other crops. In Italy, plantations of eucalyptus can provide a large amount of biomass to satisfy part of the country’s internal demand. However, eucalyptus cultivation is less profitable than cultivation of traditional crops due to the low market prices of wood. This study aims both to analyze the willingness of a sample of Italian consumers to pay for eucalyptus firewood and to investigate the main factors that may affect this willingness. Data are collected from a sample of 231 consumers using a web-based survey. The double-bounded dichotomous choice contingent valuation model is then applied. The findings show that information, the energetic density of firewood, consumers’ interest in environment issues, and the age of respondents are aspects that are positively associated with respondents’ willingness to pay for eucalyptus firewood. Conversely, interest in both firewood species and packaging are factors that reduce consumer willingness to pay for eucalyptus firewood. Even though these results cannot be generalized to the whole Italian population, the findings may indicate new opportunities for eucalyptus, while growing demand for eucalyptus could offer an interesting opportunity for firms to enter the sector and develop marketing strategies targeted towards specific market niches.

Willingness to pay for a Rift valley fever (RVF) vaccine among Kenyan cattle producers

A double bounded contingent valuation (CV) model was used to assess the Willingness to Pay (WTP) for vaccination of cattle against RVF in a sample of 276 livestock producers in Murang’a, Laikipia and Kwale Counties. While the level of awareness about the disease was rather low, nearly all respondents expressed willingness to have their animals vaccinated against the disease. Average WTP was highest in Murang’a (mean = US$1.44) where farmers practice dairy farming using exotic breeds of cattle compared to Laikipia (mean = US$1.24), where both exotic dairy and local breeds of cattle together with their crosses are kept, and Kwale (mean = US$1.01) where local breeds are predominantly kept. These average levels of WTP were 17%–67% higher than the estimated cost incurred by government (US$0.86 per head of cattle) in the most recent vaccination campaign conducted during RVF outbreak. Surprisingly, WTP tended to be lower among producers with many heads of cattle probably because the large herds would translate to bigger total costs. The study recommended support for sensitization campaigns about RVF and its control measures. While the high average levels of WTP implies potential for commercialization of vaccination against RVF, there may be need for price differentiation by region to ensure that sufficiently high numbers of producers vaccinate their animals to prevent outbreaks.

The Social Costs of Marine Litter along the East China Sea: Evidence from Ten Coastal Scenic Spots of Zhejiang Province, China

Marine litter poses numerous threats to the global environment. To estimate the social costs of marine litter in China, two stated preference methods, namely the contingent valuation model (CVM) and the choice experiment model (CEM), were used in this research. This paper conducted surveys at ten different beaches along the East China Sea in Zhejiang province in October 2017. The results indicate that approximately 74.1% of the interviewees are willing to volunteer to participate in clean-up programmes and are willing to spend 1.5 days per month on average in their daily lives, which equates to a potential loss of income of USD 1.08 per day. The willingness to pay for the removal of the main types of litter ranges from USD 0.12–0.20 per visitor across the four sample cities, which is mainly determined by the degree of the removal, the crowdedness of the beach and the visitor’s perception. The social costs are USD 1.08–1.40 per visitor when the contingent valuation method is applied and USD 1.00–1.07 per visitor when the choice experiment method is adopted, which accounts for 8–14% of the beach entrance fee. The analysis of the social costs of marine litter yielded some useful implications regarding future coastal management policy, including extra entrance fee, the quality-oriented environmental strategy and more incentives to volunteers.

Food quality vs food patriotism

Purpose The purpose of this paper is to investigate the role of perceived food quality and consumer ethnocentrism and potential trade-offs between these two concepts in Russian consumers’ food purchase decisions after the implementation of the Russian import ban. Design/methodology/approach Survey data were collected via in-person interviews in the City of Perm, which is one of the largest and most industrial cities in Russia. A double-bounded dichotomous-choice contingent valuation model is utilized to estimate willingness to pay (WTP) and to analyze factors that affect consumers’ choice. Findings The results suggest that most respondents do not consider domestically produced cheese as a risky product in terms of food safety but simply of lower quality than imported cheese. However, the average respondent’s WTP discount for domestic cheese compared to imported cheese is 8 percent, which is relatively small. This corresponds to participants’ opinion that buying domestic cheese is the right thing to do since it supports Russian farmers and producers. The results indicate further that with increasing education and income levels, individuals are less likely to prefer domestically produced cheese for either economic or quality reasons. This effect is stronger for the quality preference. Research limitations/implications The results indicate that if the Russian government aims at expanding the domestic food market further, more attention needs to be paid to ensuring the quality of domestic food products in order to increase consumer acceptance and WTP. Originality/value This is the first study providing empirical evidence on Russian consumers’ attitudes and perceptions of domestically vs imported food products after the implementation of the Russian import ban, which can be considered as an external policy shock.

Consumers’ Willingness to Pay for Organic Fruits and Vegetables and its Market Potential in Bengaluru District, Karnataka

Organic fruits and vegetables which are free from chemicals contributes many nutritional benefits to human health as well as to overcome disease hazards. In India, from last decade organic farming has gained more importance and consumers are willing to purchase organic produce. Double-Bounded Dichotomous Choice (DBDC) method of Contingent Valuation and Binomial Multiple Logistic Regression model has been used to estimate the factors affecting the WTP of the farmer. It was estimated that the mean willingness to pay for organic French bean was 89.6 per kg, for organic banana was 51 per kg and finally for organic grapes was 151.33 per kg. It is also found that the market potential for organic french bean in domestic market was estimated as 7.37 crore, for organic banana it was estimated as 4.61 crore and for organic grapes it was estimated as 10.41 crore. From the results, it can be concluded that there will be a huge demand and market potential for organic fruits and vegetables in future days.

Willingness to pay for replacing traditional energies with renewable energy in South Korea

This study aims to estimate consumers' willingness to pay (WTP) for replacing traditional energy generated from nuclear and coal sources with renewable energy, using a contingent valuation (CV) model. To this end, it reports the results from a CV survey of 1000 respondents and a spike model. The estimate obtained shows that consumers are willing to pay an additional USD 3.3 per month to replace nuclear power and USD 3.0 per month to replace coal energy. The total WTPs for the substitution of nuclear power and coal-fired power with renewable energy sources are calculated as USD 722 million and USD 659 million, respectively. When such a WTP is provided for installing photovoltaic equipment, the photovoltaic capacity of 372 MW for nuclear power substitution and 339 MW for coal-fired power substitution can be built every year, taking into consideration the backup cost and opportunity cost. Given that the WTP means the level of public acceptability of a rising energy bill, Korean consumers would accept an increase in their electricity bills caused by solar photovoltaic energy equivalent to 31–32 GW in the medium and long term.

Public Willingness to Pay for Transforming Jogyesa Buddhist Temple in Seoul, Korea into a Cultural Tourism Resource

The Jogyesa Buddhist Temple (JBT), located in Seoul, Korea, is the chief temple of the Jogye Order, which represents Korean Buddhism. The Seoul government plans to transform the JBT into a cultural tourism resource and a historical site. This study attempts to analyze the willingness to pay (WTP) for implementing the transformation, which includes building a new shopping arcade for Buddhist culture and tourism, constructing a museum for the teaching of history and an experience center for Korean traditional culture in the precincts of JBT, and making an open space for domestic and/or foreign visitors. To this end, the study looks into the WTP for the implementation, reporting on a contingent valuation (CV) survey that was conducted with 500 Seoul households. The single-bounded dichotomous choice CV model and a spike model were applied to derive the WTP responses and analyze the WTP data with zero observations, respectively. The mean yearly WTP was computed to be KRW 7129 (USD 6.30) per household for the next five years, with the estimate being statistically significant at the 1% level. Expanding the value to the Seoul population gives us KRW 25.4 billion (USD 22.5 million) per year. The present value of the total WTP amounts to KRW 114.6 billion (USD 101.3 million) using a social discount rate of 5.5%. We can conclude that Seoul households are ready to shoulder some of the financial burden of implementing the transformation.

Contingent Valuation Model Based on Contoured Willingness to Pay and Empirical Analysis

Contingent Valuation Model Based on Contoured Willingness to Pay and Empirical Analysis

Sensory Analysis and Willingness to Pay for Craft Cider

AbstractWe conducted a blind tasting sensory evaluation experiment and a chemical analysis of four craft hard apple ciders from the Pacific Northwest of the USA. Using the sensory and demographic data collected during the experiment, we estimated the consumer willingness-to-pay (WTP), using a contingent valuation model. Overall liking, taste, and aroma, from the sensory evaluation, as well as age of the sampler and if the sampler was a cider drinker, contributed positively to the WTP. In contrast, if the subject was a beer drinker this reduced their WTP. From the chemical analysis we found that tannin level had a positive effect on WTP, but an increased level of sweetness, as part of a ratio of specific gravity to acid, decreased consumer WTP. (JEL Classifications: C91, D12, L66, Q13)