Dichotomous Choice Contingent Valuation Survey Research Articles

Willingness to Pay for Colorectal Cancer Screening in Vietnam: Policy Implications From a Contingent Valuation Survey

ObjectivesTo determine the willingness to pay (WTP) for the fecal occult blood test (FOBT) and colonoscopy among the general population to provide evidence for policymakers in deciding whether to include them in the social health insurance benefit package and facilitate the pricing practice. MethodsThe conventional double-bounded dichotomous choice contingent valuation survey was used to determine the WTP. We recruited 402 people aged 50 to 75 who came to 3 primary healthcare clinics in Hanoi from February 2019 to April 2019. The questionnaire was built based on the pilot research with a 5-bid design, that is, the starting bids of US $4.05, 6.75, 13.51, 21.01, and 36.47 for FOBT and US $21.01, 40.52, 54.03, 81.04, and 182.34 for colonoscopy. The data analysis was performed using the DCchoice package version 3.5.1. Cost in Vietnam dong is converted to 2022 US $using purchasing power parity method. ResultsA total of 7.2% of participants refused to pay for FOBT and colonoscopy. Analysis of the univariate model showed that the mean and median WTP for FOBT were US $62.08 and 45.28. The mean and median WTP for colonoscopy were US $101.61 and 78.61. When adjusting the WTP value by related factors, the mean and median WTP estimates for FOBT were almost the same. The choice of WTP for FOBT and colonoscopy was statistically associated with several variables. ConclusionsThis study supports the inclusion of FOBT and colonoscopy into the social health insurance benefits package. This study also supports policymakers in pricing practice to optimize the uptake rate of colorectal cancer screening tests.

Determinants of Demand Response Program Participation: Contingent Valuation Evidence from a Smart Thermostat Program

As renewable electricity generation continues to increase in the United States (US), considerable effort goes into matching heterogeneous supply to demand at a subhour time-step. As a result, some electric providers offer incentive-based programs for residential consumers that aim to reduce electric demand during high-demand periods. There is little research into determinants of consumer response to incentive-based programs beyond typical sociodemographic characteristics. To add to this body of literature, this paper presents the findings of a dichotomous choice contingent valuation (CV) survey targeting US ratepayers’ participation in a direct-load-control scheme utilizing a smart thermostat designed to reallocate consumer electricity demand on summer days when grid stress is high. Our results show approximately 50% of respondents are willing to participate at a median willingness-to-accept (WTA) figure of USD 9.50 (95% CI: 3.74, 15.25) per month that lasts for one summer (June through August)—or slightly less than USD 30 per annum. Participation is significantly affected by a respondent’s attitudes and preferences surrounding various environmental and institutional perspectives, but not by sociodemographic characteristics. These findings suggest utilities designing direct-load-control programs may improve participation by designing incentives specific to customers’ attitudes and preferences.

Economic Valuation of Reducing Submerged Marine Debris in South Korea

Submerged marine debris (SMD) scattered between sea level and the bottom of the sea damages the habitats of marine life and threatens its growth in South Korea. The collection of SMD is more difficult and expensive than that of coastal and floating debris. The government is trying to achieve a 33% reduction in SMD by 2023 by expanding its collection, which requires huge additional investments and additional information about the economic value or benefits of the reduction. This article seeks to conduct an economic valuation of the reduction by employing contingent valuation (CV), which asks people to indicate their willingness to pay (WTP) for the reduction. A dichotomous choice CV survey was undertaken with 1000 households by a professional survey firm through person-to-person interviews during July 2019. Overall, people understood the CV questions well and reported the WTP responses for a hypothetical market successfully created with CV. Although 37.9% of interviewees stated zero WTP, the average of the yearly household WTP was estimated as 5523 Korean won (KRW) (USD 4.92). This value ensures statistical significance. The population’s WTP for the reduction would be KRW 110.30 billion (USD 99.75 million) per year over the next five years. It was found that the reduction is socially beneficial since the value was greater than the costs involved in the reduction.

Assessing Consumer Demand for Georgia Lavender-Based Products

AbstractTo further improve the understanding of promoting locally grown lavender, we examine consumer willingness to pay (WTP) for three lavender-based products: lavender bundles, culinary lavender, and lavender oil. We evaluate an online sample located in the southeast using a double-bounded dichotomous choice contingent valuation survey. Lavender bundles have the highest WTP, followed by oil and culinary lavender. Certain marketing factors result in higher WTP, including product familiarity, familiarity with the Georgia Grown program, and shopping frequency at farmers’ markets. This study provides a better understanding of the opportunity for small-scale farmers to market specialty crops such as lavender.

Tourists’ Willingness to Pay Increased Entrance Fees at Mexican Protected Areas: A Multi-Site Contingent Valuation Study

It can be challenging to set protected area entrance fees without information on how much visitors are willing to pay. It is particularly difficult for agencies managing multiple sites to set fees without conducting surveys at each location. In order to examine how willingness to pay estimates would vary across sites with distinctive profiles, 877 visitors at five Mexican protected sites (Calakmul, Cobá, Palenque, Sian Ka’an, and Yum Balam) were interviewed through double-bounded dichotomous choice contingent valuation surveys. The results suggest that visitors would be willing to pay higher entrance fees, with mean maximum willingness to pay estimates of 2.8–9.8 times current fees, ranging from US$15.70 to US$25.83. Visitor demand was found to be relatively inelastic, with aggregate fee rises of 26% estimated to result in a 5% decrease in visitation. These results suggest that there is room to raise revenues through moderate fee increases without a concomitant drop-off in visitation.

Factors affecting consumers’ willingness to pay for animal welfare eggs in Taiwan

In this research, a dichotomous choice contingent valuation survey was conducted to investigate consumers’ willingness to pay for animal welfare eggs in Taiwan. A double-bounded interval-data model is used to estimate willingness to pay for animal welfare eggs. The estimation results showed that the average willingness to pay is 14.4259 NTD per egg. The results of this research also showed that demographic variables such as age, income, education degree, occupation, and religion had an impact on willingness to pay for animal welfare eggs. The respondents associate with traditional religions such as Buddhism and Taoism were willing to pay more than those who were unassociated. The empirical results also revealed that respondents were willing to pay for animal welfare products partly because of their food safety concerns.

Farmers’ willingness to pay for surface water in the West Mitidja irrigated perimeter, northern Algeria

Algeria is among the most water-stressed countries in the world. Because of its climatic conditions, irrigation is essential for agricultural production. Water prices paid by farmers in public irrigation districts are very low and do not cover the operation and maintenance (O&M) costs of the irrigated perimeters, thus leading to the deterioration of these infrastructures. The objective of this paper is to analyse whether farmer’s in the West Mitidja irrigation district in northern Algeria would be willing to pay more for surface water in order to maintain the water supply service in its current conditions. We estimated farmers’ willingness to pay (WTP) for water using data from a dichotomous choice contingent valuation survey to 112 randomly selected farmers. Farmers’ responses were modelled using logistic regression techniques. We also analysed which technical, structural, social and economic characteristics of farms and farmers explain the differences in WTP. Our results showed that nearly 80% of the surveyed farmers are willing to pay an extra price for irrigation water. The average WTP was 64% greater than the price currently paid by farmers, suggesting some scope for improving the financial resources of the Mitidja irrigated perimeter, but insufficient to cover all O&M costs. Some of the key identified factors that affect WTP for surface water relate to farm ownership, access to groundwater resources, cropping patterns, farmers’ agricultural training and risk exposure.

Convergent validity between willingness to pay elicitation methods: an application to Grand Canyon whitewater boaters

We directly compare trip willingness to pay (WTP) values between dichotomous choice contingent valuation (DCCV) and discrete choice experiment (DCE) stated preference surveys of private party Grand Canyon whitewater boaters. The consistency of DCCV and DCE estimates is debated in the literature, and this study contributes to the body of work comparing the methods. Comparisons were made of mean WTP estimates for four hypothetical Colorado River flow-level scenarios. Boaters were found to most highly value mid-range flows, with very low and very high flows eliciting lower WTP estimates across both DCE and DCCV surveys. Mean WTP precision was estimated through simulation. No statistically significant differences were detected between the two methods at three of the four hypothetical flow levels.

A contingent valuation study comparing citizen’s willingness-to-pay for climate change Mitigation in China and the United States

Being the world’s two largest greenhouse gas polluters and economies, both the United States and China must be involved to achieve meaningful global action to address climate change. To better understand public support for climate change mitigation policy in these countries, this study employs a double-bounded dichotomous choice contingent valuation survey to estimate American and Chinese citizens’ willingness-to-pay (WTP) for climate change action. The results show that on average, US college students and adults have similar WTP values. Chinese adults’ WTP is about three-fifths of US adults’ WTP measured in US dollars, while Chinese students’ WTP is only three-fourths of US students’ WTP. Adjusting for the significant difference in per capita income, Chinese adult and student WTP is over two times larger than that of their US counterparts. In addition, political ideology for US respondents is found to have a significant influence on WTP even when controlling for other covariates, such as environmental concern and climate change belief.

Willingness to pay for irrigation water when groundwater is scarce

Conversion to surface water irrigation is one of the critical initiatives to address the decline in groundwater supply. A double-bounded dichotomous choice contingent valuation survey is used to estimate producers’ willingness to pay (WTP) for surface water supplied by irrigation districts in Arkansas, United States. The estimated mean WTP for irrigation water is 2.7¢/m3 ($33.21/acre-foot). Comparison indicates a significant share of producers are likely to have higher WTPs for surface water than the average pumping cost in the study area. Producers located in areas with less groundwater resources have higher WTPs. Producers that are more concerned with a water shortage occurring in the state in the next 10 years have higher WTPs. A somewhat unexpected result is that participation in the Conservation Reserve Program predicts lower WTPs. One possible explanation is that farmers see the transfer of land out of crop production as a more viable financial decision when groundwater supply decreases.

Public values on offshore wind farm

The purpose of this study is twofold: (1) to examine households’ willingness to pay for preserving offshore natural beauty from the construction of wind farm as an alternative nonrenewable energy and (2) to analyze the effect on the economic value of a public good resulting from the change in order of information. We employ parametric method with logistic distribution and distribution-free Turnbull estimator to a dichotomous choice contingent valuation survey to elicit economic value of preserving offshore area in Nantucket Sound, Massachusetts. Using Turnbull estimator, the economic values of public good in question, as measured by expected lower bound willingness to pay (WTP) and willingness to accept (WTA), are estimated to be $56.74 and $89.44 per year, respectively. However, the censored logistic regression, which depends on the assumed logistic distribution, produced median WTP and WTA of very small values $0.08 and $0.09. Regarding the survey treatment, we find no significant effect of the order of information on WTP/WTA responses.

Public Acceptability of Introducing a Biogas Mandate in Korea: A Contingent Valuation Study

Biogas (BG), a renewable form of energy, can mitigate greenhouse gas emissions, unlike conventional gas. Thus, the Korean Government is considering the introduction of a BG mandate, in which the legal blend is 2% BG and 98% conventional gas (BG2), by 2020 to expand BG use. We should examine the public acceptability of the introduction, which will incur a rise in the gas price. This study attempts to assess the public’s willingness to pay (WTP) for introducing the BG2 program in Korea. The WTP data were obtained from a one-and-one-half-bounded dichotomous choice contingent valuation survey of 1000 households. Because a considerable number of the respondents (63.4%) gave a zero WTP response, we applied a spike model to treat the WTP data with zero observations. The yearly mean WTP was computed as 2539 Korean won (KRW) (USD 2.5) per household for the next 10 years, which is also statistically meaningful at the 1% level. Expanding the value to the national population gives us KRW 50.7 billion (USD 49.5 million) per year. The present value of the total public WTP amounts to KRW 372.7 billion (USD 368.4 million) using a social discount rate of 5.5%. We can conclude that gas consumers in Korea are ready to shoulder some of the financial burden of expanding the use of BG.

해양보호구역의 설정에 대한 대중인식도 연구 - 조건부 가치측정법을 이용한 필리핀 기마라스주의 사례

In Korea and the Philippines, as well as all over the world, with the recognition of the importance of marine ecological resources, the marine protected areas(MPA) have been established and managed to protect and preserve these resources. While the number of marine protected areas for marine ecological resources protection has been increased, there is main problem that the most of MPAs do not achieve their intended management objectives. the effective management. Because of the positive and negative impacts on local communities and fishermen as direct stockholders, there has been ongoing debate on the pros and cons of implementing MPAs. Accordingly, this research conducted a case study of establishing Marine Protected Areas in Guimaras, Philippines because Philippines fisheries code of 1998 (Republic Act 8550), which is enacted to manage, conserve and protect fishery resources, obliged local governments to designate no less than 15% of jurisdictional municipal water as fisheries resource protection areas for a long time. To do this, a dichotomous-choice contingent-valuation survey was conducted in the two municipalities of Guimaras, Philippines to investigate public opinion in debates over MPAs and to estimate willingness to pay (WTP) for MPAs to protect and conserve marine habitats for fishery resources. Because of the expected economic costs by prohibiting fishing activities within the establishing newMPA, 58.7% of respondents thought the costs should be compensated, but 91.4% respondents voted in favor of increasing MPAs for fisheries resources as a protective measure. Finally, with Contingent Valuation Method(CVM), the aggregate mean WTP (375.5ha) of San Lorenzo and Sibunag residents in Guimaras Province, Philippines for establishing the additional MPA in their municipality waters was estimated to $1,046,791. Therefore, these findings could be used as a valuable data for establishing effective management plan of MPAs in Korea.

Valuing access to biological collections with contingent valuation and cost–benefit analysis

Biological collections may be underutilised because of transaction costs incurred in their use. One way to reduce transaction costs and foster greater utilisation of biological collections that could benefit society is through the creation of a virtual central database of biological collections, available online. The objective of this paper is to estimate the benefits of this policy change using a dichotomous choice contingent valuation survey of the primary users of biological collections. Marginal willingness to pay (WTP) for access to a new central database linking collections around Australia was investigated through an annual user fee payment vehicle. The mean WTP of direct users of the proposed program was Australian dollar (A$) 149 per annum (95% confidence interval of $102–$348). We conducted a cost–benefit analysis of the proposal, showing that the aggregate benefits are likely to outweigh the total costs of setting up and maintaining the database in the longer term. These findings are useful for resource allocation decisions regarding biological collections.

A Spatial Probit Modeling Approach to Account for Spatial Spillover Effects in Dichotomous Choice Contingent Valuation Surveys

We present a demonstration of a Bayesian spatial probit model for a dichotomous choice contingent valuation method willingness-to-pay (WTP) questions. If voting behavior is spatially correlated, spatial interdependence exists within the data, and standard probit models will result in biased and inconsistent estimated nonbid coefficients. Adjusting sample WTP to population WTP requires unbiased estimates of the nonbid coefficients, and we find a $17 difference in population WTP per household in a standard vs. spatial model. We conclude that failure to correctly model spatial dependence can lead to differences in WTP estimates with potentially important policy ramifications.

Dealing with internal inconsistency in double-bounded dichotomous choice: an application to community-based health insurance

Contingent valuation method is commonly used in the field of health economics in an attempt to help policy makers in their policy-making decision process. The use of the double-bounded dichotomous choice format results in a substantial gain in statistical efficiency over the single-bounded dichotomous choice format. Yet, there is internal inconsistency with a downward mean shifting in the second responses. Using data from a community-based health insurance survey, this paper aims at testing whether double certainty calibration reduces internal inconsistency in a double-bounded dichotomous choice contingent valuation survey. Results suggest that double calibration significantly reduces internal inconsistency while maintaining the efficiency gain arising from the double-bounded format.

Implications of Bid Design and Willingness-To-Pay Distribution for Starting Point Bias in Double-Bounded Dichotomous Choice Contingent Valuation Surveys

We examine starting point bias in double-bounded dichotomous choice contingent valuation surveys. We investigate (1) the seriousness of the biases for the location and scale parameters of the willingness-to-pay (WTP) in the presence of starting point bias; (2) whether or not these biases depend on the distribution of WTP and on the bid design; and (3) how well a commonly used diagnostic for starting point bias—a test of the null that bid set dummies entered in the right-hand side of the WTP model are jointly equal to zero—performs under various circumstances. Monte Carlo simulations suggest that the effect of ignoring starting point bias depends on the bid design and on the true distribution of WTP. A well-balanced, symmetric bid design may result in very modest biases even when the anchoring mechanism is very strong. The power of bid set dummies in detecting starting point bias is low. They tend to account for misspecifications in the distribution assumed by the researcher for the latent WTP, rather than capturing the presence of starting point bias.

Preventing land loss in coastal Louisiana: Estimates of WTP and WTA

A dichotomous-choice contingent-valuation survey was conducted in the State of Louisiana (USA) to estimate compensating surplus (CS) and equivalent surplus (ES) welfare measures for the prevention of future coastal wetland losses in Louisiana. Valuations were elicited using both willingness to pay (WTP) and willingness to accept compensation (WTA) payment vehicles. Mean CS (WTP) estimates based on a probit model using a Box–Cox specification on income was $825 per household annually, and mean ES (WTA) was estimated at $4444 per household annually. Regression results indicate that the major factors influencing support for land-loss prevention were income (positive, WTP model only), perceived hurricane protection benefits (positive), environmental and recreation protection (positive), distrust of government (negative), age (positive, WTA model only), and race (positive for whites).

Municipal solid waste management, source-separated waste and stakeholder’s attitude: a Contingent Valuation Study

Recognition of the social costs associated with traditional practices of urban waste management in India led to the formulation of Municipal Waste Management and Handling rules (2000). However, compliance with the proposed collection and disposal involves higher commitment in terms of both time and money on the part of the residents, local bodies as well as the state and central government. In this context, information about the value of the environmental improvements conferred upon the city dwellers would be important from the planner’s perspective. Given the non-market characteristic of waste disposal services, we infer about beneficiaries’ perceived demand for the proposed service by means of Double-Bounded Dichotomous Choice Contingent Valuation Survey conducted in the Bally Municipality in the district of Howrah, West Bengal. We estimate the average WTP by controlling for anchoring bias and use the annualized value of cost to examine the feasibility of the proposed system.

Applying the dissonance‐minimising format to value cultural heritage in developing countries*

We adapt the dissonance‐minimising (DM) format proposed by Blamey et al. [Land Economics, 75 (1999) 126] in a dichotomous choice contingent valuation survey to estimate the economic benefits of preserving a cultural heritage site in Vietnam. We find that the DM format can be successfully applied to avoid biases because of yea‐saying in a developing country context.