Contingent Valuation Study Research Articles

Valuing inland blue space: A contingent valuation study of two large freshwater lakes.

Water bodies, or blue spaces, offer a range of health and well-being benefits. Many of these benefits occur in waterside spaces and do not require direct water contact. For example, non-water based physical activity (e.g. walking and running) and reduced stress as a result of viewing water from a distance. However, research dedicated to understanding the economic impact of changes to freshwater ecosystems predominantly focuses on water-based recreation and water quality. As a result, the economic impacts of changes to waterside space are often overlooked. This study used the contingent valuation method to determine public preference for the protection of lakeside quality, in terms of lake views, path quality and lakeside access, at two large freshwater lakes in Scotland (Loch Lomond and Loch Leven). The aim of the study was to estimate willingness to pay among a sample of adults in Scotland (n=1056) for the protection of lakeside quality. Results indicate that the majority of respondents are willing to pay for the preservation of lakeside quality at each lake. Based upon the most conservative estimates obtained, mean willingness to pay for the protection of lakeside quality was £12.06 per household per year at Loch Lomond and £8.44 at Loch Leven. These findings provide valuable economic data and suggest that changes to waterside space at destination water bodies have nationally important economic impacts. Greater consideration of the economic impact of changes to lakeside space is recommended in order to develop cost-effective and socially optimal water resource management policies at large freshwater lakes.

Respondent Fatigue in Estimates of the Cost of White-Collar Crime: Implications From Willingness-to-Pay Surveys

Contingent valuation (CV) methods are used in many contexts to estimate non-tangible costs, despite some indications that they may not be reliable. In criminal justice, CV has been used to generate “costs of crime” for street, violent, and white-collar crimes. This article explores respondent fatigue using both quantitative and qualitative indicators from an open-ended CV survey where respondents were asked how much they would be willing to pay to reduce certain crimes. Our findings reveal that willingness to pay (WTP) to reduce crime increases when both problematic response patterns and fatigue effects are accounted for in the calculation, indicating that fatigued respondents who also engage in straight lining are driving the WTP estimates down. We conclude by discussing the implications of our results for policymakers and other consumers of CV studies.

The value of dementia care towards the end of life-A contingent valuation study.

ObjectivesA dementia nurse specialist (DNS) is expected to improve the quality of care and support to people with dementia nearing, and at, the end of life (EoL) by facilitating some key features of care. The aim of this study was to estimate willingness‐to‐pay (WTP) values from the general public perspective, for the different levels of support that the DNS can provide.MethodsContingent valuation methods were used to elicit the maximum WTP for scenarios describing different types of support provided by the DNS for EoL care in dementia. In a general population online survey, 1002 participants aged 18 years or more sampled from the United Kingdom provided valuations. Five scenarios were valued with mean WTP value calculated for each scenario along with the relationship between mean WTP and participant characteristics.ResultsThe mean WTP varied across scenarios with higher values for the scenarios offering more features. Participants with some experience of dementia were willing to pay more compared with those with no experience. WTP values were higher for high‐income groups compared with the lowest income level (P < .05). There was no evidence to suggest that respondent characteristics such as age, gender, family size, health utility or education status influenced the WTP values.ConclusionThe general population values the anticipated improvement in dementia care provided by a DNS. This study will help inform judgements on interventions to improve the quality of EoL care.

Europeans’ willingness to pay for ending homelessness: A contingent valuation study

The purpose of this study is to assess the utility value European citizens put on an innovative social program aimed at reducing homelessness. The Housing First (HF) model involves access to regular, scattered, independent and integrated housing in the community with the support of a multidisciplinary team. Currently, HF is not implemented by most European countries or funded by healthcare or social plans, but randomised controlled trials have stressed significant results for improved housing stability, recovery and healthcare services use. The broader implementation of HF across Europe would benefit from a better understanding of citizens' preferences and “willingness to pay” (WTP) for medico-social interventions like HF. We conducted a representative telephone survey between March and December 2017 in eight European countries (France, Ireland, Italy, the Netherlands, Poland, Portugal, Spain, and Sweden). Respondent's WTP for HF (N = 5631) was assessed through a contingent valuation method with a bidding algorithm. 42.3% of respondents were willing to pay more taxes to reduce homelessness through the HF model, and significant differences were found between countries (p < 0.001); 30.4% of respondents who did not value the HF model were protest zeros (either contested the payment vehicle-taxes- or the survey instrument). Respondents were willing to pay €28.2 (±11) through annual taxation for the HF model. Respondents with higher educational attainment, who paid national taxes, reported positive attitudes about homelessness, or reported practices to reduce homelessness (donations, volunteering) were more likely to value the HF model, with some countries' differences also related to factors at the environmental level. These findings inform key stakeholders that European citizens are aware of the issue of homelessness in their countries and that scaling up the HF model across Europe is both feasible and likely to have public support.

Exploring farmers’ willingness to pay for crop insurance products: A case of weather-based crop insurance in Punjab, India

The Government of India has launched the Pradhan Mantri Fasal Bima Yojana, a crop insurance scheme that subsidizes the premium and promises to settle claims timely, but are farmers willing to pay? We conducted a contingent valuation study in Punjab, a state where agriculture is irrigated and the risk is estimated to be so low that the government has not implemented crop insurance before. The study is based on primary data of 716 wheat farmers. The study found that the farmers are willing to pay INR 297 per acre for crop insurance, less than the premium based on existing rates.

Willingness to pay for improved solid waste management services and associated factors among urban households: One and one half bounded contingent valuation study in Bahir Dar city, Ethiopia

Households which are the primary producers of solid waste and suffer from the effects of uncollected solid waste should be able to participate in improving SWM. Accordingly, the contribution of urb...

Preliminary Results of a Healthcare Contingent Valuation Study in Greece*

Preliminary Results of a Healthcare Contingent Valuation Study in Greece*

Norms and the willingness to pay for coastal ecosystem restoration: A case of the Tokyo Bay intertidal flats

Tokyo Bay's ecosystem has severely deteriorated due to land reclamation projects, which gradually claimed over 95% of the intertidal flats in the bay, beginning in the early 20th century. We conducted a contingent valuation study to examine the habitat protection and recreational value of intertidal flats in Tokyo Bay, Japan. To understand the motivations behind valuation responses, we examined respondents' latent ecosystem preferences and norms specific to Tokyo Bay's ecosystem by using factor analysis and cluster analysis. Our approach enables us to quantify the differences in motivations for ecosystem service restoration and relate them to the valuation of the ecosystem restoration project. We found that differences in norms, described by an awareness of the problem, an awareness of personal responsibility and an awareness of personal cost, resulted in significantly different valuations of the ecosystem. The scenario that ensured the protection of the natural habitat was preferred to the scenario that allowed for recreational use.

Valuation on Health States: A Contingent Valuation Study

Valuation on Health States: A Contingent Valuation Study

More than a good book: contingent valuation of public library services in England

Libraries in England have an important role as providers of a range of services, from book-lending and computer access to children’s activities, training courses and meeting spaces. Understanding the value of libraries is a complex issue due to the wide-ranging services that libraries provide and their inherently non-market nature. This study estimates the value of engagement in library services through a large contingent valuation study of around 2000 library users and non-users. We find that average willingness to pay (WTP) to maintain current library services (above the core book-lending and computer/Internet services) among library users in England is £19.51/annum and £10.31/annum for non-users. This provides a combined annual WTP for these local library services of £723.4 million. This is the first study to disaggregate WTP values by the services that respondents report having used. Those using health services, attending lectures and using library space for socialising are willing to pay more on average to maintain all services at their local library. Library use is also positively associated with subjective well-being, suggesting that libraries have an important role in users’ quality of life. This provides supporting evidence that the values for public libraries can be interpreted as reflecting primary benefits stemming from welfare changes associated with library engagement.

Europeans’ willingness to pay for ending homelessness: a contingent valuation study

Abstract Objective In Europe, 4 million people were homeless in 2009. The Staircase model of care targeted mental health, drug rehabilitation and housing readiness yields poor long-term housing results. Western countries are investing in a new model, Housing First (HF), which yields better clinical and social results. We aim to explore how much the European citizens are willing to pay for the HF model and what are the determinants of this valuation. Methods A nationally representative telephone survey conducted in 2017, targeted European adult citizens from France, Ireland, Italy, Netherlands, Portugal, Spain, Poland and Sweden. Respondent’s willingness-to-pay (WTP) (n = 5,631) for HF model was assessed through a contingent valuation method with bidding algorithm. Multivariate analyses using two-part models with a cluster and weighted design were conducted to predict: 1/ respondents’ refusal or incapacity to pay for the HF model; 2/ willingness-to-pay (continuum) for the HF model. Results 42.3% of respondents were willing to pay more taxes to reduce homelessness through HF model; 30.3% were protest zero (don’t want to pay taxes (either contested the payment vehicle-taxes- or the survey instrument); huge differences being observed between countries (P&amp;lt;.001). Respondents were willing to pay €57 (+/- 9) through annual taxes for the HF model. Respondents with higher educational attainment, paying taxes on income, reporting positive attitudes about homelessness or practices to reduce homelessness (donations, volunteering), and those residing in a country with higher share of social protection expenditures on family benefits or higher at-risk-of-poverty rate were more likely to value the HF model. Perspective These results provide key stakeholders with an understanding of the level of support from the general population for the Housing First model; especially since the determinants of this valuation were studied according to the social and environmental context of each country. Key messages More than 42% of European citizens reported to be willing to pay for reversing homelessness. More than a three quarter of European citizens thought that Government spending on Homelessness is too little.

Willingness to pay for renewable electricity: A contingent valuation study in Turkey

Renewable energy sources are advised as an important alternative vehicle for dealing with a high rate of energy dependency and global warming. Turkey has also an ambitious national energy goal of minimizing energy import and producing 30% of electricity from renewable energy sources by 2023. However, it may not be easy to reach these goals. Willingness to Pay (WTP) thus plays a central role in directing appropriate policies for the country to realize its energy targets. This study reviews previous studies in the same literature as well as examines WTP of Turkish citizens for renewable electricity energy by using a stratified-sample and contingent valuation survey of 2500 households. The results from estimated models show that environmental conscience, membership to an environmental organization, age, education level, gender and income of households are significant determinants of WTP. In addition, the mean value of WTP for green electricity by Turkish households is estimated at around US$ 1 (with the exchange rate 5,3 TL/ US$) per month per household. A number of policy suggestions are further discussed.

Willingness to pay for expansion of the whale sanctuary in Faxaflói Bay, Iceland: A contingent valuation study

Commercial whaling is a divisive issue in Iceland, and often considered to be irreconcilable with whale watching. The coexistence of both activities in Faxaflói Bay, adjacent to the capital city of Reykjavík, has led to the designation of part of the bay as a whale sanctuary, where whaling is banned. The study utilises the contingent valuation method to elicit the preferences of Icelanders and estimate their willingness to pay (WTP) to expand the sanctuary to the full extent of Faxaflói Bay, with an aim to inform marine spatial planning in Iceland. Using the double-bounded dichotomous approach, the mean WTP for expansion of the Faxaflói Bay Whale Sanctuary was estimated to be 5082 ISK/42 USD per person (1.32 billion ISK/10.9 million USD when multiplied by the number of taxpayers), and 29.7% of the respondents with clearly defined preferences expressed positive WTP. According to the logit regression model, statistically significant socioeconomic and attitudinal variables included age, gender, level of education, number of persons in a household, and attitudes towards environmental conservation and whaling. Policy implications of non-market valuation of marine ES are discussed, pointing to a need to further assess the multiple marine ES values applying a transdisciplinary approach to inform decision-making.

Willingness to Pay for Energy Efficient Appliances: The Case of Lebanese Consumers

A contingent valuation study was conducted to elicit the willingness to pay (WTP) of Lebanese citizens for five types of energy-efficient home appliances: washing machines, air conditioners, televisions, light bulbs, and refrigerators. A face-to-face survey is designed to this end, with data collection achieving a sample of 605 households geographically representative of the Lebanese population. A multivariate Tobit model was used to gauge the effects of socio-demographic characteristics, attitudes, perceptions, behavior, and experience on the WTP across all these appliances, while accounting for potential correlations between these WTP values. Findings provide evidence of the importance of several socio–demographics in determining WTP for more energy efficient appliances, such as income, education, and age, and the importance of perceptions and experience covariates, not least the implementation of energy labelling and the cost of electricity. In terms of policy implications, this study highlights the need to legally enforce a shift in payment mode from renting per capacity (kW) to purchasing per power (kWh) consumed for electricity in the back-up power sector, and the immediate introduction of a local labelling scheme for home appliances.

Temporal Reliability of Willingness to Pay for Payments for Environmental Services: Lessons from Lombok, Indonesia

Willingness to pay (WTP) for payments for environmental services (PES) can be temporarily reliable if contingent valuation (CV) studies are embedded in an accurate survey population, yield low measurement errors, and are based on a correct assumption of no change in sociodemographic factors affecting buyer preferences. These pre-conditions are assumed in PES schemes applying temporal reliability of WTP. This study tests these conditions in CV-PES studies from 2001, 2003, and 2011 in Lombok, Indonesia, by comparing them with a new CV-PES study in 2015. Our results show that the CV-PES studies would not meet the pre-conditions due to inclusion of non-PES buyers, potential measurement errors implied by a lack of validating information and high WTP estimate, and/or failure to test the condition of no change of socio-economic factors. Results contribute to identifying pragmatic challenges and lessons for applying temporal reliability of WTP to PES implementation.

Estimating Attribute-Specific Willingness-to-Pay Values from a Health Care Contingent Valuation Study: A Best-Worst Choice Approach.

Willingness-to-pay (WTP) studies frequently use a contingent valuation (CV) method to determine the economic value of a good or service. However, a typical CV study is able to estimate the WTP for a good as a whole, but provides no information about the marginal WTP for different attributes of a good. The aim was to estimate marginal WTP for different attributes of a CV scenario. By using the data from an additional best-worst choice (BWC) experiment, we disaggregated the holistic WTP values for dental care, estimated using the CV method, into attribute-specific WTP values. The study was conducted at the School of Dental Medicine, University of Zagreb, Croatia. Dental school patients were surveyed from March 2016 to January 2017, and their WTP for dental care was estimated using either a CV survey (n = 242), which also included a BWC task, or a discrete choice experiment (DCE) survey (n = 275). The largest marginal welfare estimate (€13.5) was obtained for the improvement in treatment explanation, followed by the improvements in staff behavior (€8.1) and waiting time in the office (€7.2), and by the changes in dental care provider (€3.4). These estimates were generally highly similar to the traditional marginal WTP estimates obtained with a traditional multi-profile DCE, after adjusting DCE estimates for non-attendance to the cost attribute. Our BWC-CV framework may serve as a valuable alternative for estimating marginal WTP values for health care attributes when the choice behavior of respondents raises concerns for the validity of DCE estimates.

Consumers' acceptability of iodine-biofortified tomato in Abeokuta, Southwestern Nigeria

Higher exposure rate to certain chemicals found in processed foods that reduce iodine absorption and a depletion in the amount of iodine found in soil have been reported to be detrimental to health. This study seeks to examine the consumers' acceptability and willingness to pay a price premium for iodine-enriched tomatoes in Abeokuta, southwest, Nigeria. Primary data were used to collect a sample of 300 respondents. The data were analyzed by descriptive statistics and Contingent Valuation Method (CVM) under double bounded dichotomous choice approach. The use of dichotomous choice (DC) method in explaining the willingness to pay (WTP) in contingent valuation studies is a common method in Economics. Research has shown that double-bounded Dichotomous Choice methods provide statistically superior outcomes than single bounded methods, given appropriate sampling design. Results from the socioeconomic characteristics of the respondents revealed a mean age of 42 years and are mainly (83%) in their economic active age (<50 years), 69% male respondents, 63% were married and 53% of the respondents had prior knowledge of iodine-biofortified tomato. It was also revealed that 58% of the respondent are willing to accept and pay a premium for iodine-biofortified tomato. Although, the proportion of the respondents who were willing to pay generally decreases with increases in price. It is concluded that age, level of education, income, prior knowledge and bid price were the significant factors influencing respondents' willingness to pay a price premium for iodine-biofortified tomato in the study area. Keywords: acceptability, contingent valuation method, iodine-biofortified tomato, price premium

Willingness-to-Accept and Willingness-to-Pay Ratios of Prevention of Mother-to-Child Transmission Services in a Nigerian Hospital: A Cross-Sectional Contingent Valuation Study

BackgroundIn Nigeria, human immunodeficiency virus (HIV)/acquired immunodeficiency syndrome treatment and care services, prevention of mother-to-child transmission (PMTCT) inclusive , are accessed free of charge by patients due to finanacial support from donor agencies. This trend may not be sustainable in the future due to the present global economic realities. Hence, there is the need to ascertain the readiness of PMTCT patients to pay for such services. ObjectivesThis contingent valuation study determined the willingness-to-accept (WTA), willingness-to-pay (WTP), and WTA-to-WTP ratios of PMTCT services among clients in a Nigerian tertiary hospital. MethodsThis was a cross-sectional questionnaire-based study. All adult PMTCT patients who had never paid for any component of the services participated in the study. The questionnaire measured their WTP and WTA for the following components of PMTCT: primary prevention of HIV, prevention of unintended pregnancy in HIV-positive women, follow-up treatment and support, and therapeutic interventions around delivery. The WTP and WTA for PMTCT drugs and specialized clinical pharmacy services were also measured. The WTA-to-WTP ratios, income effects, and income elasticity were determined for all services. Questions were posed using Naira (N) ($1 = N250, at the time of the study). ResultsRespondents aged 25 to 34 years comprised 80.8% of the population, whereas 80.8% were married. The mean amounts of WTA and WTP for services involving primary prevention of HIV was N543 000 and N18 600, respectively. Its WTA-to-WTP ratio and approximate income effect were 29.19 and -28.19, respectively. These variables were associated with WTP for some services: level of education with PMTCT follow-up treatment and support (P=.046), trimester of pregnancy with primary prevention of HIV (P=.002), correspondent's residence with specialized clinical pharmacy services (P=.003), and time spent to reach facility with primary prevention of HIV (P=.002). ConclusionsAll services had high WTP, WTA-to-WTP ratios, and income effects, with inelastic income elasticity coefficients: patients in the Nigerian hospital attribute high value to all PMTCT services.

Value of college athletic programmes in the Korean Higher Education: A contingent valuation study

AbstractHigher Education institutions in Korea are undergoing restructuring in response to the government reform policy. As one aspect of the restructuring, many colleges are reducing or abolishing the athletic programmes. This study investigated the value of athletic programmes for college students by using the contingent valuation method. The results of a multivariate survival analysis with a convenience sample of 372 undergraduate students indicate that the monetary value of the willingness of a student to pay for athletic programmes was about KRW 116,000 per semester. Students’ level of involvement with and knowledge about intercollegiate athletics, as well as monthly allowance and year in college have positive effects on willingness to pay for athletic programmes.

Estimating the benefits of restoration And preservation scenarios of marine biodiversity: An application of the contingent valuation method

Marine biodiversity provides valuable benefits for human beings. Some of these benefits, such as the provision of food, are easily recognized, while some, such as climate regulation, are less well-known. People lack direct experience of the economic value of marine biodiversity, since no relevant market exists. This study reports the results of a contingent valuation study to estimate people’s willingness to pay (WTP) for biodiversity restoration and conservation scenarios in some unique coralligenous habitats in the North Adriatic Sea, Italy.Coralligenous habitat constitutes one of the most important ‘hot spots’ of species diversity in the Mediterranean, notoriously affected by a loss of biodiversity as a consequence of human activities, such as over-fishing and pollution, sediment deposition, recreational fishing, trawling, and diving. A major threat is the increasing frequency of abandoned, lost, or otherwise discarded fishing gear at sea.A sample of 4000 Italian people was surveyed, and the results show that people’s WTP for interventions aimed at improving biodiversity through the removal and restoration operations in the area is distinctly higher than is the WTP for the preservation and prevention of further biodiversity loss. The findings suggest that respondents perceive prevention and control activities as being embedded in restoration, the benefits of which can be seen within a certain time frame. Positive and significant determinants of respondents’ WTP are family income, knowledge of biodiversity in coralligenous habitat, previous cognizance and awareness of marine biodiversity issues, environmental friendly behavior, and concern for environmental quality.