Contingent Valuation Survey Research Articles

Subjective perceptions about benefit and cost levels in contingent valuation

Abstract This paper hypothesizes that respondents in contingent valuation surveys may form different benefit and cost levels that deviate from the levels specified by the researcher. The conceptual framework investigates potential biases based on the direction of deviations. Survey data on the restoration of wetlands in Tampa Bay show that a significant portion of the respondents deviate from the benefit and cost levels presented in the scenario. Empirical results indicate that willingness-to-pay (WTP) estimates are very sensitive to the perceived benefit and cost levels. Depending on the direction of the deviations, WTP estimates could fluctuate up to +61 percent and −82 percent, compared to the estimate from those who evaluate the scenario at the presented levels.

Measuring the harm of sugar sweetened beverages and internalities associated with it.

Obesity, which is partly driven by the consumption of sugar-sweetened beverages (SSBs), significantly increases the risk of type-2 diabetes and cardiovascular diseases, leading to substantial health and economic burdens. This study aims to quantify the monetary value of health harms caused by SSB consumption, along with the associated internalities, through a contingent valuation survey. The results are crucial for determining the socially optimal tax rate. We surveyed 293 residents of Wellington, New Zealand, to assess their willingness to pay (WTP) for reductions in the risks of diabetes, stroke, and heart disease associated with SSB intake. Logistic regression analysis revealed the marginal WTP for a 1% risk reduction in diabetes, stroke, and heart disease to be NZ$404.86, NZ$809.04, and NZ$1,236.84, respectively. Based on these values, we estimate the marginal harm from SSB consumption to be approximately NZ$17.37 per liter in New Zealand, with internalities amounting to NZ$6.43 per liter, suggesting an optimal tax rate of NZ$6.49 per liter. Implementing such a tax is feasible and would likely double or triple the price of SSBs in New Zealand.

A Contingent Valuation Study for Use in Valuing Public Goods with Health Externalities: The Case of Street Pianos.

Clinical healthcare is not the only way to improve an individual's health. Community-based interventions can have health and wellbeing impacts as well; however, the nature of these interventions, which have public good characteristics, poses challenges for the typical ways in which we value outcomes for use in (health) economic evaluations. The approaches to valuation of these type of interventions should allow for the incorporation of all types of values including option value, externalities and individual use-value. This is a feasibility study with the objective to re-consider the importance of health externalities when valuing public health interventions that are treated as public goods from an economic perspective. A contingent valuation (CV) survey was designed to elicit individual willingness to pay (WTP) for the public piano programme (PPP). Five different scenarios were designed; three scenarios focussed on individual use-value, while the other two (scenarios 4 and 5) covered option values and externalities. An online survey was conducted with a sample of 105 people. Preferences differed across the different scenarios. The mean WTP for scenario 1 was £0.81, for scenario 2 £3.65, for scenario 3 £3.07, for scenario 4 £7.26 and for scenario 5 £6.02. The WTP results for each scenario are presented and discussed regarding the nature of the good, user and non-user perspectives, payment vehicles and individual characteristics. This study provides evidence that all types of use are necessary for inclusion in an economic evaluation, especially when the good in question is a public good where its benefits can be obtained from all community members.

Determinants of parental demand of human papillomavirus vaccination for adolescent daughters in China: Contingent valuation survey.

Several types of human papillomavirus (HPV) vaccines have been approved for use in adolescent girls in China. These vaccines are regulated as non-National Immunisation Program vaccines and are optional and generally fully self-paid by vaccinees. To assess parents' demand for HPV vaccination by eliciting their willingness-to-pay for their adolescent daughters to be vaccinated against HPV and to examine the determinants of demand for HPV vaccination in China. A contingent valuation survey was conducted across three cities in Shandong Province in eastern China. We selected 11 junior middle schools with different socioeconomic features and randomly selected 6 classes in each school, and questionnaires were distributed to all girls aged 12-16 in the 66 classes for their parents to complete. A payment card approach was used to elicit parental willingness-to-pay for HPV vaccination for their daughters. We also collected a wide array of socioeconomic and psychological variables and interval regressions were applied to examine the determinants of parental willingness-to-pay. A total of 1074 eligible parents who completed valid questions were included in analyses. Over 85% of parents believed HPV vaccines were, in general, necessary and beneficiary. However, only around 10% believed that their daughters would be infected by HPV. About 8% of parents would not accept HPV vaccine even if the vaccine were free mainly due to concerns about the potential side effects and vaccine safety and quality issues, and 27.37% would only accept the vaccine if it were free. The median willingness-to-pay was 300 CNY (42 USD). Several factors were positively correlated with higher willingness-to-pay: income, urban residence (relative to rural residence), mothers (relative to fathers), parents' beliefs about vaccine benefits, whether they should make decisions for their daughters, and whether their daughters would be susceptible to HPV. Though education-level was not significantly correlated with willingness-to-pay in the main regressions, a subgroup analysis revealed interesting dynamics in the relation between education and willingness-to-pay across different income-levels. There is a large gap between parents' willingness-to-pay and the market price of HPV vaccine for girls in China. Parents generally believed the HPV vaccines were beneficial and necessary but when asked for their daughters, most parents did not believe their daughters would be infected by HPV despite the high prevalence in China. Future focus should be on ensuring the provision of accurate health information about HPV prevalence, vaccine quality, and safety to promote vaccine uptake, and promotional efforts tailored to different income groups might yield better effects. Government involvement in negotiating more widely acceptable and affordable prices or subsidising may be necessary for protecting high-risk population groups.

Beyond meta-studies: Learnings from a large multi-site primary dataset on non-tangible benefits of nature-based solutions

Nature-Based Solutions (NBS) are growing in popularity as approaches for, among others, the reduction of hydro-meteorological risks. However, their uptake is still slow despite the recognition of their role in enabling a smarter, more systemic, and faster adaptation to climate change. Uncertainties regarding the valuation and subsequent economic feasibility of NBS are deemed to be a substantial barrier to their uptake. The monetary valuation of the non-tangible benefits of NBS (e.g., increased recreation and enhanced biodiversity) is seen as a plausible strategy to get closer to providing a holistic assessment. However, the quantification of these non-tangible benefits is often not integrated into economic assessments of NBS, partly as methods that can be replicated across sites have been lacking. This situation risks leading to inconsistent and/or biased valuations, which may negatively influence or delay the prioritization of NBS. Thus, our study aims to collect primary data on the non-tangible benefits of NBS across different European study sites and to identify patterns in how the different types and contexts of NBS influence people's valuation. We applied a contingent valuation survey to six different peri‑urban NBS study sites, where the focus is on the reduction of hydro-meteorological risks. The target of the survey was the general public, and we used willingness-to-pay questions to quantify the value given by the respondents to the NBS. Our results highlighted that people value the multiple benefits of NBS, and positively react to implementations improving nature across all sites. Moreover, similar variables seem to influence the value attributed to NBS across sites, with income and personal preferences ranking highly among them. These insights indicate that decision-makers and NBS-planners can learn more broadly from past experiences from a variety of (cultural) contexts, which can assist in delivering more targeted and multi-functional NBS.

Out of sight, not out of mind: The effect of access to conservation sites on the willingness to pay for protecting endangered species

According to the latest global assessment report on biodiversity and ecosystem services, nature and biodiversity have experienced a global decline, making the development of conservation policies urgent. Herein, we used a contingent valuation survey to estimate the economic value of a reintroduction program for the huemul (Hippocamelus bisulcus), an endangered charismatic species in Chile. Our novel approach exploits changes in the access to the site to disentangle nonuse value from use value. We use parametric and nonparametric models to estimate the willingness to pay for the program. Our findings consistently indicate that the conservation of the huemul is valued more when tourist access is restricted, as opposed to allowing visitors access to reintroduction areas. We also analyze the sensitivity of this main finding to different cut-off points of a certainty scale, showing that the results are robust. We hypothesize that people are willing to pay a “premium” to keep the conservation site “out of sight” from tourist activities. This could also be related to the belief that a reintroduction program would be more effective if access was not allowed. A cost-benefit analysis using the most conservative assumptions suggests that social benefit significantly outperforms cost.

Estimation of willingness to pay for improved water supply service: Case of Algerian households

ABSTRACT The purpose of this article is to evaluate the water company in Algeria (ADE) subscribers’ Willingness To Pay (WTP) for a better service offer. This study assessed the WTP for improved drinking water in the department of Souk-Ahras (Algeria), using contingent valuation survey data of 5,342 households, with a response rate of 10.86% (greater than 10% of each municipality's total number of subscribers). Then, Probit and Tobit models were applied to analyze the determinants of WTP. The results show that the majority of respondents (62.84%) testified that they were not satisfied with the quality of the service provided in terms of quantity and quality of the water distributed. This research revealed that the WTP for an improved water supply service was approximately 16.18 Algerian dinar (DZD)/m3 (approximately 0.11 US$/m3) instead of the current tariff (6.3 DZD/m3–0.04 US$ /m3). With this new water tariff, the average water charge for a household is around 1.37% of the average monthly income.

Contextualizing willingness to pay for sustainable management of agroecosystem services in a rapidly transforming landscape: Insights from the interdunal wetlands of Medinipur Coastal Plain, India

Interdunal wetlands of the Medinipur coastal plain provide various agroecosystem services (AES). Local populace had been found to utilize these wetlands for subsistence livelihood since time immemorial. However, many of these wetlands have become degraded by extensive land use conversions along with increasing apathy among young farmers to continue wetland based traditional livelihood practices in the recent years. In this regard, the present study attempts to assess the willingness to pay (WTP) of the local wetland dependent populace towards restoration and management of the various AES of a regional interdunal wetland complex using contingent valuation (CV) method. The CV survey was conducted among 229 households from 14 villages associated to the wetland complex. Four Landsat images from 1990 to 2020 and several ancillary spatial datasets were analysed to detect the current as well as future status (2030) of land use covers using the artificial neural network algorithm. Results showed that socio-economic factors such as age, level of education, monthly income per person, ownership of wetlands, and availability of AES primarily determined the average WTP (US$ 0.30 per month) of surveyed households. Thus, the total economic value of the wetland complex, calculated as the aggregate WTP, was remarkably as low as US$ 11568.64 per year, thereby indicating towards lesser environmental awareness and widespread poverty among the respondents. This perilous condition is also manifested in the present and future projected LULC patterns from 1990 to 2030. If the same trend of mismanagement prevails in the imminent years, a drop of more than 50% in areal coverage of interdunal wetlands is anticipated. Based on the findings, it was suggested that the vicious cycle of ‘lesser awareness-low WTP-wetland loss-degrading provision of AES’ could only be replaced through a three-pronged approach comprising environmental education, technological dissemination, and legislative cum ecotourism interventions.

Stakeholders' perception and willingness-to-pay for an aquaculture-based fisheries enhancement program for coastal cod in Southern Norway

The coastal cod fishery in Southern Norway has experienced a significant decline over the last decades. Recreational fishing for cod in the eastern part of the country is currently banned. Fisheries managers have adopted a variety of strategies to sustain the populations for resource users. Aquaculture-based fisheries enhancement has been considered as an alternative intervention to rebuild overexploited cod stock or to improve the opportunity for marine fishing. However, there has been a debate regarding its ecological and social effectiveness among stakeholders. In this paper, we conducted an online contingent valuation survey aiming to understand stakeholders' perceptions and attitude towards restocking of hatchery-produced juveniles as a potential restoration approach to rebuild depleted coastal cod populations and their willingness to pay for the implementation of such an enhancement program in southern Norway. Results indicate that the public has a positive perception to the potential restocking program. The average Willingness-To-Pay (WTP), e.g. fishing license fee, is approximately 175 NOK and 693 NOK if all of the respondents, and only counting those who are willing to, contribute. The introduction of a minimum fishing license fee of 175 NOK (approximately 17€) would cover the cost of production of over 20 million juvenile cod of appropriate size for release. Age of the respondents, the frequency of their fishing trips, and their perception of the decline of coastal cod were the main drivers for the WTP contribution while the amount of the WTP was strongly correlated to targeting particular species, educational level, and place of residence. Considering the critical situation of the coastal cod populations in southern Norway, together with the significant advances in cod rearing techniques, in fish tagging technology and the maturation of fisheries enhancement as science, and the positive stakeholders' perceptions and attitudes towards such an aquaculture-based enhancement program revealed from this study, it may be the time to re-evaluate the potential integration of a holistic cod restocking program within Norwegian coastal zone management.

Experience Counts: Unveiling Patients’ Willingness to Pay for Remote Monitoring and Patient Self-Measurement

ObjectivesThis study aimed to (1) estimate patients’ willingness to pay (WTP) for remote monitoring (RM) and patient self-measurement (PSM) for pregnant women at risk of gestational hypertensive disorders, (2) assess the impact of experience with these technologies on WTP, and (3) determine their impact on health-related quality of life (HRQoL). MethodsData collection was part of a multicentric randomized controlled trial, Pregnancy Remote Monitoring II, with 2 interventions: RM and PSM. A contingent valuation survey, combining a payment card and open-ended question, was completed twice by 199 participants. Two-part models analyze the impact of experience on WTP, regression models estimated using ordinary least squares the impact of RM and PSM on HRQoL. ResultsThe mean WTP amount was approximately €120 for RM and €80 for PSM. Compared with having no experience, WTP RM was €63 higher after a long-term exposure to RM (P = .01) and WTP PSM was €26 lower after a short-term exposure to RM (P = .07). No significant impact of RM or PSM on HRQoL was found. ConclusionsThis study contributes to the discussion on the impact of experience on WTP. Those who had a long-term experience with RM, were willing to pay more for RM than those without experience. This confirms our hypothesis that involving patients without experience with the valued treatment, possibly underestimates WTP. A long-term experience has, however, no impact on the WTP for technologies for which the potential benefits are apparent without experiencing them, such as PSM.

Sustainability of insect-based feed and consumer willingness to pay for novel food: A stated preference study

In recent years, numerous studies have highlighted insects as a promising protein source for poultry feed, offering environmental benefits and improved animal welfare. However, insects are still considered unconventional in Western diets, limiting their acceptance among consumers. This study examines to what extent information on animal welfare and environmental benefits of insect-based feed can counteract factors like neophobia and established food habits, hence enhancing consumer acceptability of novel poultry products from animals fed with insect-based feed. A contingent valuation survey involving 512 Italian consumers divided into four groups was conducted: a control group with no information, an animal welfare information group, an environmental information group, and a group receiving both sets of information. Results indicate that providing information about the advantages of insect-based feed can reduce consumer reluctance towards the innovative product. Moreover, information on environmental benefits affects consumer preferences more than information on animal welfare.

Investigating the Value of Parallel Pipeline Projects for Water Supply: A Contingent Valuation Study in South Korea

Parallel pipeline projects can contribute to ensuring a safe and stable water supply and preventing or mitigating losses caused by water pipeline accidents. However, because these projects require a significant investment, feasibility tests are essential prior to their implementation. Considering the public nature of the water supply, the direct beneficiaries of the project and people from other regions can place value on such projects. Thus, this study estimates the value of parallel pipeline projects using the contingent valuation method (CVM) and the swing weighting technique. We constructed two contingent valuation surveys: one asking about the willingness to pay (WTP) for a parallel pipeline project within the respondent’s region and the other asking about the WTP for a project outside the region. The results show that the annual WTP per household for projects within and outside the region was 113,669 KRW (87.98 USD) and 5493 KRW (4.25 USD), respectively. These results indicate that the value perceived by people from outside the region should be considered. Additionally, the results from the swing weighting technique and WTP analysis show that the values that respondents generally consider important and those that can leverage the overall project value are distinct. This study’s results provide insights into the implementation of parallel pipeline projects in South Korea. Furthermore, this study’s analytical framework can be used for the valuation of other public infrastructure projects.

Visitors’ environmental attitudes and willingness to pay for nature conservation: the case of Langtang National Park in the Himalayas

<p>National parks are a destination for nature-based tourism (NBT) in both the developed and developing countries. National Park visitors with pro-environmental attitudes may be more likely to support the management's conservation efforts. However, managing and funding national parks and protected areas is a significant challenge, particularly in low-income countries. Visitor entrance fees to national parks are an often-heard option to secure sustainable funding for the management. This study aimed to measure environmental attitude and willingness to pay (WTP) for park entrance fees of international visitors to Langtang National Park in the Nepal Himalayas. The New Ecological Paradigm (NEP) scale was applied to assess environmental attitude, while a contingent valuation survey was carried out to explore WTP. International visitors of the park (n= 476) were surveyed over two years. The survey results suggest that national park visitors exhibited comparatively high pro-environmental attitudes, with a NEP score of 3.72 (5 being the highest score). Visitors were willing to pay a new entrance fee of USD 57.51 (mean) in comparison to the existing fee of USD 30. The willingness to pay a higher entry fee was positively correlated with a pro-environmental attitude and income. The increase in entrance fees could significantly improve the funding of national parks in Nepal and lead to an upgrade of its infrastructures without reducing the overall number of visitors.</p>

Are Vietnamese coffee farmers willing to pay for weather index insurance?

Global coffee production experiences detrimental impacts of climate change. Weather index insurance (WII) offers an opportunity for coffee farmers to mitigate the climate risks in production and motivate them to adopt sustainable farming practices. This study explores Vietnamese farmers' willingness to participate and pay for WII schemes for coffee. A contingent valuation survey was employed on a sample of 151 farmers from the two largest coffee production areas: Lam Dong and Dak Lak provinces. The findings revealed that farmers are willing to pay, on average, US$92.30 per policy for a premium on insurance products. We also found that farmers in Lam Dong are willing to pay more than those in Dak Lak despite fewer Lam Dong farmers being willing to participate in the insurance schemes. The majority of farmers prefer drought to be insured within 3 months of coffee blossom, from February to April. Factors influencing farmers' decision to join the insurance schemes include education, farm size, climate change perception and experiences, and insurance knowledge. The study suggests that the current coffee industry co-contribution to insurance premiums could potentially be reduced by up to 90 %. However, caution must be taken when adjusting co-contribution, as farmers' willingness to pay is heterogeneous. In addition, raising awareness of the impact of climate change on crop production and insurance knowledge training is critical to ensure an increased number of participants in the schemes. The recommendations from this study will contribute to improving the design of coffee insurance products that are tailored to local needs and preferences and will assist in upscaling the products’ outreach in the Coffee Climate Protection Insurance Program.

Mathematical model analysis of mandatory state health insurance : Revisiting risks and opportunities for private health

This article aims to determine a feasible entrance brink constant for secluded healthiness indemnification corporations to access the newest purchaser excess for Kosovo’s planned compulsory wellbeing indemnification fund, as well as to evaluate the reasoning behind it and measure the surplus. We begin with a succinct overview of the current status of the private insurance sector. Despite experiencing a substantial growth spurt in recent years, its share in the overall financial sector has, in fact, decreased. Following this, we delve into an intuitive approach for calculating the threshold coefficient. Due to the unavailability of similar contingent valuation survey data, we adopt a method based on adjusting prices using the consumer price index. These adjusted prices are then used to estimate the most recent data. Our findings reveal the presence of a consumer surplus, signifying an opportunity for original sequestered guarantors to enter the marketplace or for prevailing companies to offer additional services at an additional cost. However, it’s important to note that the 2021 surplus is notably lower compared to the estimate for the year 2015.

Measuring the impact of the embedding effect in contingent valuation studies of cultural public goods: the case of museums

ABSTRACT The embedding effect represents one of the most challenging problems of the contingent valuation (CV) method. The purpose of this study is to address the issue of embedding effect in the context of museums, by estimating the size and extent of the problem. A CV study conducted in Denmark asked respondents to evaluate both the Danish museum-system (inclusive good) and the specific local museum in their municipality of residence (embedded good). Typically, an equal or very close willingness-to-pay (WTP) for the two goods would indicate the presence of an embedding effect. However, we show that this will only be the case for some respondents, while for others the similarity between the two WTP reflects an exclusive interest for the local museum. We demonstrate the existence of these two different types of respondents by using a latent class model where respondents are clustered based on answers to the CV survey. Consequently, the aggregate WTP and the bias associated with the embedding effect are estimated. Our results have implications in terms of the reliability of CV studies and its implementation in actual policy issues, demonstrating that the right questions and techniques will facilitate the separation of ‘true’ answers from biased ones.

Desire, moral evaluation or sense of duty: The modal framing of stated preference elicitation

Contingent valuation surveys generally elicit stated preferences by asking how much a respondent would be willing to pay for an environmental improvement. By drawing on linguistic theory, we propose that the modal phrasing of this question establishes a particular type of commitment towards a hypothetical payment, namely a subjective want or desire. Based on the idea that beyond subjective desires, considerations about what is morally adequate may guide expressed values and that elicitation of these can be linguistically facilitated, we employ an experimental framework to investigate the effects of different modals ( willing, should and appropriate) in the elicitation question on stated preferences. We find that elicited amounts with appropriate are higher than those elicited with willing and should for environmental improvements more associated with use values, while differences are non-significant for environmental improvements more associated with non-use values. We discuss the implications of our findings for stated preference studies, as well as the potential broader theoretical implications that our study entails regarding linguistic representations of the moral entrenchment of environmental values.

Willingness to pay for antiretroviral therapy, viral load, and premium services; A contingent valuation survey of people living with HIV in southern Nigeria.

With stagnating funding for HIV and AIDS control programs in Nigeria, alternative funding models for antiretroviral therapy (ART) including out of pocket payment are being considered to sustain momentum epidemic control targets. We assessed willingness to pay for ART related services, and factors associated with willingness to pay. Between July and August 2019, we conducted a survey among people living with HIV (PLHIV) on ART in 3 states in southern Nigeria. Randomly sampled respondents on ART for at least 6 months, aged ≥ 18 years, able to communicate in English or pidgin English, and consenting to the survey were enrolled. Respondents were asked if they were willing to pay for clinical consultation, antiretroviral drugs (ARVs), viral load testing services and premium ART services (including fast track services). Respondents indicating willingness to pay for any of these services were asked the maximum amount they were willing to pay using contingent valuation methodology. We assessed the weighted proportions of PLHIV on ART willing to pay for ART and used survey-featured logistic regression measures to assess sociodemographic and ART related factors associated with willingness to pay for ART services. Overall, 1,598 PLHIV with a mean age of 39.03 years (standard deviation [SD]: 11.23 years), were included in this analysis. Of these, 65.8% (1,079), 73.9% (1,192), 61.0% (995) and 33.6% (472) were willing to pay for ART consultation, ARVs, viral load testing services and premium ART services respectively. The median maximum amount PLHIV were willing to pay for clinical consultation and for ARVs was NGN1,000 (USD equivalent of $2.78; interquartile range [IQR]: 500-2,000) respectively, and NGN2,500 (USD equivalent of $6.94; IQR: NGN1,000-5,000) and NGN2,000 (USD equivalent of $5.56; IQR: NGN1,000-3,000) for viral load testing and premium ART services respectively. Receiving ART in Lagos state, being employed and having a monthly income of NGN100,000 or more was associated with willingness to pay for the various ART services. We found generally high-level of willingness to pay for ART consultation, ARVs and viral load testing services but low willingness to pay for premium ART services among PLHIV on ART. The maximum amount PLHIV were willing to pay for various ART services fell short of benchmarks for alternative funding but can potentially supplement ART by funding differentiated service delivery models that require nominal amounts to facilitate person-centered differentiated service delivery models.

How Does the Cost Vector Affect Payment Consequentiality in a Binary Choice Contingent Valuation Survey?

How Does the Cost Vector Affect Payment Consequentiality in a Binary Choice Contingent Valuation Survey?

Willingness to pay for forest conservation: Evidence from a contingent valuation survey analysis in Southwest Ethiopia

Willingness to pay for forest conservation: Evidence from a contingent valuation survey analysis in Southwest Ethiopia