Household Willingness To Pay Research Articles

Valuing the benefits of reducing firearm violence in the United States

Justifying a proposed government regulation intended to reduce firearm violence requires a conceptually sound estimate of the monetized value of that impact and how that value is distributed across the population. Some previous estimates do not serve as a valid basis for policy evaluation or are out of date. A nationally representative survey was conducted by the AP-NORC Center for Public Affairs Research in August 2022 (n = 660). The authors designed and added a series of contingent-valuation items to the questionnaire. Double-bounded estimates of willingness-to-pay (WTP) were derived from a regression analysis of responses regarding voting on a hypothetical referendum on a state-wide package of measures designed to reduce gun violence at specified cost to taxpayers. Average WTP for a reduction of 20% in the state rate of gun violence was $744 per household (IQR:$668-$928), implying a national total of $97.6 billion. Household WTP was positively associated with household income, the respondent's assessment of the seriousness of gun violence in their community and the subjective likelihood that they would become a victim of gun violence. A variety of tests support the claim that this application of the contingent-valuation method provided valid results. WTP is the recognized basis for assessing the value of proposed federal regulations. The estimated WTP for reducing gun violence is about twice as high as a recent cost-of-injury estimate and provides a much different picture of the incidence of costs by income and demographic characteristics.

City bus electrification in South Korea: Public preference identified through contingent valuation experiment

To respond actively to issues of climate change and particulate matters, the South Korean authorities have established a plan to electrify all city buses by 2030. This article explores public preferences for city bus electrification in South Korea through the application of contingent valuation (CV). A CV questionnaire was presented to 1000 randomly chosen households along with visual aids to induce their willingness to pay (WTP) for city bus electrification. The payment vehicle and the survey method were selected as bimonthly household income tax and person-to-person interviewing, respectively. As a method of eliciting the WTP, the one-and-one-half-bound dichotomous choice technique was utilized. To analyze the WTP data with numerous zeros, the spike model was employed. The results revealed statistically significant findings. The mean household WTP was obtained as KRW 5195 (USD 4.0) every two months. Expanding this figure to encompass the entire national population results in an annual national total of KRW 680.6 billion (USD 524.7 million). The cost involved in the electrification amounts to KRW 625.0 billion (USD 481.9 million) every year. Therefore, the national WTP outweighs the cost. City bus electrification can be socially justifiable. Furthermore, some policy issues regarding the success of city bus electrification are discussed.

Public Willingness to Pay for Interstate Cooperation to Preserve the Ecological Integrity of the Han River Estuary in Korea

The Han River Estuary (HRE), Yellow Sea, forms part of the border between South Korea and North Korea, and these two countries are militarily hostile. Since the HRE has quite excellent ecological integrity, the task of preserving it well is emerging as important. Thus, the South Korean Government is attempting to preserve the ecological integrity of the HRE through interstate cooperation. By employing contingent valuation, this study delves into South Korean households’ willingness to pay (WTP) for this preservation. One thousand households nationwide were sampled and surveyed through face-to-face individual interviews. Annual household income tax was selected as the payment vehicle. Dichotomous choice questioning was chosen as the WTP induction method. A spike model was selected as a method for modelling a WTP of zero. The main results showed statistical significance. Annual WTP per household and national WTP were obtained as KRW 4487 (USD 3.92) and KRW 125.75 billion (USD 109.83 million), respectively. When a 10-year payment period and a 4.5% discount rate were adopted, the value was KRW 766.14 billion (USD 669.12 million). South Korean households placed considerable value on the preservation of the ecological integrity of the HRE through interstate cooperation.

Willingness to Pay Rumah Tangga di Kota Padang terhadap Produk Ramah Lingkungan

The growing number of people moving up to the consumptive class and the urbanization of rural communities to cities also increase the demand for products with plastic packaging which. The problem of plastic waste has become the government's priority in realizing the goal of sustainable development through circular economic practices. Encouraging the creation of environmentally friendly products in the industry has been done but the number of product innovations is still low. Another obstacle is that product sales are strongly linked to the general welfare of individuals and society. Therefore, exploring consumer desires towards environmentally friendly products becomes important because this new knowledge can be used by governments and manufacturers to promote environmentally friendly products in the long run consumption. This study attempts to investigate the WTP of households in Padang City against environmentally friendly products and found factors that affect the WTP value. Using the contingent valuation method (CVM), the findings showed that willingness to pay (WTP) for eco-friendly products was significantly associated with gender, education, household income and price of alternative products. The results also showed that the average household is willing to pay about Rp 34,472.- for one product. These micro-level investigations can be a useful framework in organizing information and strategies on how households value eco-friendly products.

Households’ Willingness to Pay for Interactive Charging Stations for Vehicle to Grid System in South Korea

The South Korean government intends to construct interactive charging stations (ICSs) for a vehicle to grid (V2G) system that uses electric vehicles as a type of energy storage system. This article employs contingent valuation (CV) to examine households’ willingness to pay (WTP) to construct the ICSs. To this end, a CV survey of 1000 people was performed using the one-and-one-half-bound dichotomous choice questioning as the elicitation method for the WTP. To check if the response effect incurred by the questioning exists, a single-bound model, which partly uses the responses from the questioning, was also applied. Furthermore, a spike model which can model WTP observations with lots of zeros was adopted. The single-bound spike model, finally chosen for further analysis, produced some results securing statistical significance. The average household WTP is estimated as KRW 4017 (USD 3.51) per annum. A national version of the yearly WTP is derived as KRW 85.48 billion (USD 74.65 million). Considering that the occurrence period of the annual WTP is 10 years, the total present value as of the end of 2022 is computed as KRW 676.4 billion (USD 590.7 million). This study has significance in two aspects. First, quantitative information on household WTP is explicitly provided. Second, to the best of the authors’ knowledge, the household WTP is empirically dealt with for the first time in the literature. In addition, the implications of this value from a policy perspective, as well as four challenges to be solved for constructing ICSs for a V2G system, are discussed.

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.

Willingness to Pay for Environmental Quality Improvement Programs and Its Determinants: Empirical Analysis in Western Nepal

Environmental conditions in western Nepal are experiencing a possible threat to economic losses and sustainability, especially due to decreased productivity and increased health risks. This research investigates the maximum willingness to pay (WTP) of the local community for environmental quality improvement programs by using the contingent valuation technique. It also explores socio-economic and behavioral determinants that influence the maximum WTP for environmental quality improvement. A cross-sectional analytical design is employed using primary data obtained through in-depth face-to-face interviews with people in the community, interviews with key informants, focus group discussions and direct observations. Of the total of 420 households sampled, 72% were willing to pay for the environmental improvement program. The average WTP of households per annum for environmental protection at the community level is given as Nepalese rupees (NPR) 1909 (confidence interval—CI: 1796–2022). Environmental factors (prolonged drought, sporadic rains and drying sprout), socio-economic factors (family size, occupation, regular saving habits in microfinance, distance to the nearest health facility, health insurance enrollment, owning a home and owning arable land) and behavioral factors (cleanliness of the toilet) are the major factors influencing the household’s WTP decision. The findings of this study provide an important guideline and basis for the implementation of cost sharing in environmental quality improvement programs among the community, governments and other stakeholders in this sector.

Evaluation of the nonmarket value of livestock and poultry feces returning to farmland utilization using CVM in Heilongjiang, China

Aiming at a series of hot issues and topics, such as resource waste, environmental pollution, and Mollisol protection, related to the arbitrary discharge of livestock and poultry feces, livestock and poultry feces are taken as the research object, a questionnaire survey was conducted to investigate residents' cognition and willingness to pay (WTP) for the nonmarket value of livestock and poultry feces returning to farmland in Heilongjiang Province, China. The contingent valuation method (CVM) was used for the correlation analysis of WTP and socioeconomic characteristics, and correlation analysis of payment mode and socioeconomic characteristics. Meanwhile, the factors influencing WTP and payment mode were analyzed. The results show that the majority of the respondents are aware of the harmfulness of the arbitrary discharge of livestock and poultry feces and the importance of its nonmarket regeneration value. Approximately 90.09% of respondents were willing to pay for the return of livestock and poultry feces to fields. In 2020, the total value of WTP of livestock and poultry feces returning to farmland in Heilongjiang Province was 4.65 billion CNY, equivalent to 1.32% of the total agricultural production of Heilongjiang Province in the same year. And the nonmarket value of livestock and poultry feces is estimated to be 1456.69 CNY/t. The annual average WTP of rural and urban households is 286.42 CNY and 422.90 CNY per household, accounting for 0.46% and 0.52% of the average annual income of households, respectively. Therefore, the return of livestock and poultry feces to farmland utilization has a high nonmarket value. The analysis shows that the average annual household income is a significant factor in WTP, and the registered permanent residence type and the average annual household income are significant factors in payment mode. The research results should provide a scientific and theoretical basis for the government's policy and decision-making on the return of livestock and poultry feces to farmland. Keywords: nonmarket value, livestock and poultry feces, farmland utilization, CVM, WTP DOI: 10.25165/j.ijabe.20231602.7588 Citation: Shang J J, Xie Y T, Guo L F, Fan J X, Liu H X. Evaluation of the nonmarket value of livestock and poultry feces returning to farmland utilization using CVM in Heilongjiang, China. Int J Agric & Biol Eng, 2023; 16(2): 48-56.

Utilization of early retiring coal-fired power plants as a cold reserve in South Korea: A public perspective

With an intention to reduce greenhouse gas emissions, the South Korean government decided to retire thirty coal-fired power plants early by 2034. Rather than dismantling all of them, some of them are proposed to be used as cold reserves. This paper seeks to explore the public preference and cost bearing for utilization of early retiring coal-fired power plants as a cold reserve by adopting a contingent valuation. To this end, the public willingness to pay (WTP) for the utilization was elicited through a survey of 1000 South Korean households. The payment vehicle was set to be an increase in monthly electricity bill. The method of inducing the WTP was determined as one-and-one-half-bounded questioning. The spike model was selected to reflect the WTP observations with zeros. The average monthly household WTP was estimated as KRW 1596 (USD 1.32), which was worth 3.6% of the average monthly electricity bill (KRW 43,950 or USD 36.32) per household. If the average WTP is re-calculated for all households in the country, it will reach KRW 263.52 billion (USD 217.80 million) a year. Therefore, the utilization can be introduced to the extent that this level of cost is incurred. Several issues that need to be solved in order for the utilization to succeed are also discussed.

Household willingness to pay for stream restoration on private and public land: Evidence from the Baltimore metropolitan region

AbstractStream restoration is one of the most widely used interventions to mitigate urban stormwater impacts and improve water quality. Government agencies have typically focused urban stream restoration efforts on public lands that they already own, even though a substantial portion of stream miles in highly urbanized areas occur on privately owned land. Yet, limited research exists to distinguish household willingness to pay (WTP) for stream restoration occurring on private versus public land. In this study, we use a choice experiment to analyze how household WTP for stream restoration attributes vary by land ownership and distance to the restoration project. Our empirical results indicate that streambank stabilization approaches have positive WTP estimates that are substantially larger in magnitude than those related to riparian vegetation management for clearing or planting trees. In general, estimated total household WTP for each of the four restoration design scenarios on public land is higher than when the same restoration design is located on private land. Nonetheless, estimated household WTP for each restoration design scenario on private land is substantial, retaining the majority of the value found on public land in all cases.

Attitudes and willingness to pay for clean heating by typical households: a case study of rural areas in Yongcheng City, Henan Province, China.

Understanding households' attitudes and willingness to pay (WTP) for clean heating can provide a scientific basis for decision-makers to assess the potential to develop clean heating, choose heating methods, and formulate subsidy standards in the region. In this paper, the double-bounded dichotomous contingent valuation method-modified by the spike model-was used to better estimate the actual WTP of households through a sample survey of 456 households in rural areas of Yongcheng City, China, in 2021. The factors influencing attitudes and WTP were examined to reveal mechanisms of accepting clean heating. The results showed that 94.96% of households were willing to pay for clean heating. The annual WTP was 1071 yuan per household, more than eight times the current heating cost. Factors that affect clean heating attitudes do not necessarily affect the WTP. Specifically, gender, length of time spent living at home, and family income had significant influences on WTP, whereas the educational level, adaptive perceptions in relation to environmental perceptions, and the recognition variables for gender equality in energy consumption had a significant impact on attitudes. It is worth noting that elderly people and females were identified as vulnerable groups in the implementation of clean heating.

Measuring the Economic Value of the Negative Externality of Livestock Malodor in South Korea

The South Korean livestock industry has increased in scale and production, generating positive impacts on the national economy. However, livestock externalities, primarily malodor, have subsequently led to increased conflicts between producers and affected communities. This study estimated Korean households’ willingness-to-pay (WTP) for government subsidies to help address livestock malodor using a contingent valuation method (CVM) derived from a double-bounded dichotomous choice model. The annual average household WTP was estimated at 29,206 Korean won (KRW) (USD 25). This was slightly higher than the respondents’ self-reported average amount of KRW 25,457 (USD 22). The estimated economic value nationally is KRW 628 billion (USD 546 million) annually, for a total of KRW 3.14 trillion (USD 2.73 billion) over a proposed five-year period. The public’s estimated WTP can be leveraged to improve livestock management practices, more efficient waste disposal techniques, and improved husbandry methods to address conflicts between producers and surrounding communities.

Valuing Mangrove Conservation Attributes in Red River Delta, Vietnam: A Choice Experiment Approach

The study aims at valuing mangrove ecosystem services in Xuan Thuy National Park, Red River Delta, Vietnam. A discrete choice experiment was employed to elicit household willingness to pay (WTP) for a community project to protect mangroves against climate change. A conditional logit model and a random parameter logit model were estimated to identify the relationships between WTP and the different attributes of the mangrove conservation project. The results suggested that local households exhibited strong preferences for mangrove coverage area and storm-prevention capacity, whereas most respondents did not perceive biodiversity benefits. A high level of heterogeneity in household preferences was found for high mangrove coverage and high management level of biodiversity. Furthermore, marginal household WTPs were computed given a change in each attribute level. Hence, the findings will aid in the development of a comprehensive payment for mangrove preservation policy in Vietnam.

Are carbon pricing policies on a path to failure in resource-dependent economies? A willingness-to-pay case study of Canada

There are limited studies on specific factors that affect willingness-to-pay (WTP) and public concerns on spending of pollution pricing in democratic economies that are carbon dependent. In light of the discourse on global pollution pricing, this study explores the complex influence of political-economic, attitudinal, and socio-demographic factors on carbon pricing, by estimating the WTP in a carbon resource-dependent economy such as Canada and the preferred revenue earmarking of Canadians. An online survey of 600 Canadian households was conducted using the random device engagement (RDE) approach. This study uses a contingent valuation method (CVM) and payment card (P.C.) to estimate the household WTP for carbon pricing on direct energy expenditure and an ordered logistic regression model for odds ratio estimates. The estimated annual WTP ranges between CAD$ 84 to CAD$ 230 in 2019 (CAD$ 1 = US$ 0.7538). This implies an acceptable increment of 1.5%–2.5% (CAD$ 157 to CAD$ 259) to the average yearly household energy expenditures. This study suggests that Canadians appear to be supportive of redistributing carbon price revenues and investing in clean energy technology. Canadian government needs to address public concerns surrounding political-economic factors, specifically the energy cost implication for vulnerable households in order to achieve emission reduction targets.

Expanding energy access in rural off-grid communities: a study on household adoption and affordability of solar home systems in Kwara State, Nigeria

This investigation scrutinizes the adoption dynamics and willingness to pay (WTP) for Solar Home Systems (SHS) within the context of rural off-grid communities in Kwara State, Nigeria. A comprehensive survey was administered to 400 households to explore their perspectives towards SHS and to ascertain their valuation of these systems. The results reveal a favourable disposition towards SHS, with a notable proportion of participants favouring personal ownership of SHS even in the event of future grid electricity availability in their localities. The consensus among respondents was that SHS provide sufficient energy to cater to their needs and could potentially act as an income source. The Payment Card (PC) method within the Contingent Valuation (CV) framework was utilized to determine WTP, eliciting precise values from the surveyed households. The derived average monthly WTP for SHS fluctuated between 72% and 75% of the current market rates, exposing an affordability challenge as the WTP falls short of the prevailing market prices. In light of fostering wider adoption, it is imperative for policymakers and SHS providers to consider market price reductions and the initiation of innovative pricing mechanisms that align with household financial capacities. Further research is encouraged on alternative financing strategies and potential subsidy programs to bridge the affordability gap and bolster SHS accessibility in off-grid rural areas. Understanding the household adoption dynamics and WTP for SHS is instrumental in driving sustainable energy transitions and enhancing the living standards of rural dwellers.

Is It Possible to Converge to Sustainable Strategies of Efficient Drinking Water Management in Tunisia?

This paper studies the behaviour of the Tunisian consumer face their consumption of drinking water. The application of the contingent valuation method (CVM) from a statistical survey allows us not only to analyse the function of the demand for the drinkable water but also to determine the willingness to pay (WTP) of households. The creation of a hypothetical market enables us to carry out a program of improvement in the quality of the potable water and to ensure the follow-up of a sustainable management of the resource. The variation in the WTP is mainly due to the introduction of the variables that are related to the characteristics of the property and the socio-economic characteristics of the households. The results show that the household's WTP varies according to the nature of the physical quality of water and also to other variables such as income, housing occupancy, and the educational level of the respondents.

Demand for an Environmental Public Good in the Time of COVID-19: A Statewide Water Quality Referendum

AbstractDue to COVID-19, many households faced hardships in the spring of 2020 – unemployment, an uncertain economic future, forced separation, and more. At the same time, the number of people who participated in outdoor recreation in many areas increased, as it was one of the few activities still permitted. How these experiences affect the public’s willingness to pay (WTP) for environmental public goods is unknown. During the early months of the pandemic, we conducted a stated preference survey to value statewide water quality improvements in Delaware. While a majority of participants report experiencing hardship of some sort (economic, emotional, etc.), mean household WTP declined by only 7 % by May 2020.

Sensitivity to scope of water and wastewater service valuations: a meta-analysis of findings from water price reviews in Great Britain

ABSTRACT At the 2014/15 water price reviews in Great Britain, a notionally similar stated preference methodology was used across multiple customer surveys to derive willingness to pay (WTP) estimates for comparable service improvements. Very different valuations were obtained for the same service measures, however, raising questions regarding their validity and reliability. This paper examines the variation in those WTP estimates via a meta-analysis of household WTP values from 18 water companies for five common service measures. Our main finding is that WTP decreased substantially with the service changes offered for valuation, a finding that is inconsistent with expected utility theory, the standard economic theory of rational choice under uncertainty, but is consistent with predictions from prospect theory, and with empirical evidence from related fields. Moreover, the majority of the observed variation in WTP estimates could be explained by differences in the scope of service change offered. The study also finds that WTP increased with the number of households supplied, a finding which is considered likely to be due to altruism, and with GDP per capita, and decreased with the number of attributes included in the study design. Significant risk framing effects are also identified.

Income Inequalities in Hepatitis B Vaccination and Willingness to Pay Among Women of Reproductive Age in Hanoi, Vietnam.

Hepatitis B virus (HBV) infection is endemic in Vietnam and can be transmitted from mother to child. Vaccination of women of reproductive age (WRA) can reduce this transmission. Because adult HBV vaccination in Vietnam follows a fee-for-service model, research is needed to determine the effect of household income on willingness to pay (WTP) to ensure equitable access to the vaccine. A cross-sectional study was performed in Hanoi, Vietnam, in April 2018, among WRA. Questionnaires were administered to assess household income, HBV history, vaccination status, vaccine awareness, and WTP for the vaccine. Multivariable logistic and interval regression were performed to assess the impact of household income on WTP for HBV vaccine. This study found that 62.3% of all participants were willing to pay for the HBV vaccine with no differences in WTP across income quintiles. There were significant differences among household income levels in awareness of HBV vaccination and WTP amount beyond US$4.50 with the lowest awareness and WTP amount among women from the lowest income quintiles. Our data suggest the need to subsidize HBV vaccination for low-income women to ensure more equitable access to HBV vaccination. We propose that a sliding-scale payment method may be an effective strategy in light of limited funding to support vaccination expansion. An education campaign focusing on lower-income households should also be implemented in conjunction with this program. Further research would be required to evaluate consumer acceptance of this payment scheme and to develop an appropriate sliding scale to maximize vaccine uptake.

Households' valuation of power outages in major cities of Ethiopia: An application of stated preference methods

In many developing countries, electricity consumers experience frequent supply interruptions, leading to high coping costs and stifled investment, which contribute to energy poverty. In 2019, we implemented stated preference experiments to estimate households' preferences for improved electricity supply in a nationally representative sample of urban households, covering 42 cities in Ethiopia. In the first split-sample experiment, we presented respondents with a contingent valuation (CV) scenario that alternatively elicited their willingness to pay (WTP) for reduced evening-time power outages, or their willingness to accept (WTA) compensation for increased disruptions. Then, we implemented a discrete choice experiment with the same respondents to understand preferences for the frequency, duration and time of a day attributes of outages, as well as the value of advanced notification. The results from the CV survey show that household WTP is approximately 40 birr (US$1.4) for a three-hour reduction of duration in power outages in the evening and that WTA is 42 birr (US$1.4) for a similar increase in the duration of outages during that period. The choice experiment meanwhile reveals that household WTP is 11 birr (US$0.4) for a one-unit reduction in the number of outages and 53 birr (US$1.8) to avoid daytime or nighttime outages relative to morning outages, on average. Households prefer a day prior outage notification to a week prior notification, with a marginal WTP of 23 birr (US$0.8). Information about the value of such outage attributes can help inform strategies that better address electricity consumers' preferences and needs. We finally discussed the relationship between energy poverty and preferences for improved electricity supply.