Significant Difference In Willingness To Pay Research Articles

Trust, corruption, and willingness to pay for improved environmental goods: An experimental analysis from a developing country

AbstractObjectiveThe objective of this study was to determine whether the type of provider institution affects the Willingness to Pay (WTP) of a population for an urban regeneration project.MethodsThis research conducts a discrete choice experiment under a split‐sample approach, conducting two types of surveys, with the only variation being the administering institution for the funds.ResultsThe main findings indicate a significant difference in WTP between the sample associated with international non‐governmental organization (NGO) and the municipal sample. For example, the WTP of the population when the provider institution is an international NGO is almost six times higher than when the administering institution is the municipality, which is related to green spaces. The findings suggest that WTP may be underestimated because of the low levels of trust in local public institutions.ConclusionThe findings of this study have significant implications for economic valuation and public‐policy development. Future research aiming to estimate WTP for environmental goods and services must carefully consider the choice of administering institutions. The sensitivity of WTP to the institutional context, particularly in developing countries, highlights the need for thorough discussions in focus groups and validation through pilot surveys.

Is carbon footprint reduction always preferred over offsetting? An analysis of tourists' preferences in the Mallorca region

This research is devoted to the analysis of tourists’ preferences for climate change (CC) mitigation policies in the Mallorca region. The stated choice experiment, used for evaluation, was designed combining a set of alternatives, characterised by carbon footprint reduction and offset policies, taking into account the existence of environmental direct benefits, but also indirect benefits that improve tourist experience or co-benefits derived from the location of policy projects. Economic welfare in form of willingness to pay (WTP) was estimated, and the alternatives were compared using compensating variation values. The study's findings validate the prevailing preference for carbon reduction policies over offsetting measures, except when the first don't have co-benefits and the latter are implemented locally. In the latter case, there is no significant difference in WTP between reducing the carbon footprint and locally offsetting it. Results not only contributes to the ongoing economic debate surrounding CC mitigation policies but also provides key information for designing mitigation schemes in diffuse emission sectors such as tourism.

Heterogeneous public attitudes toward high-voltage power transmission lines and willingness to pay for undergrounding projects

On the path to carbon neutrality by 2050, the expansion and improvement of high-voltage power transmission lines (HV-PTL) is a critical and unavoidable energy issue that may become a potential source of public conflict. However, the discussion on this issue in South Korea has been insufficient. In this study, we analyzed public attitudes toward HV-PTLs and classified people into subgroups based on their common characteristics using latent class models. In addition, we used the contingent valuation method to estimate the public's willingness to pay (WTP) for the conversion of overhead lines to underground cables, focusing on the differences among the identified subgroups. According to the empirical analysis, people in South Korea can be divided into four classes based on their perceived need for resident participation in the decision-making process, perceived health risk, and perceived property loss risk. According to the WTP analysis using the spike model, the estimated mean and median WTP values were KRW 4184 (USD 3.8) and KRW 2632 (USD 2.4) per household per month, respectively. In addition, we found a significant difference in WTP by class. Those who perceived HV-PTL as risky were less willing to pay for undergrounding projects compared with those whose perceived risk was relatively low. This study contributes to the understanding of academics and policymakers on the relationship between public attitudes toward HV-PTL and overhead to underground conversion.

Consumer behavior in choosing microplastic contaminated seafood across different countries: The role of cultural and attitudinal factors

Microplastics are polluting the oceans worldwide and being stored in popular seafood species. Although there is uncertainty about human health impacts from consuming such seafood, such uncertainty doesn’t limit consumer concern. Economic studies regarding these new pollutants are seriously lacking, although environmental research is becoming more common. One of the goals of this study is to fill this gap, and meanwhile we explore that culture, attitudinal factors, and willingness-to-pay (WTP) elicitation formats may be key determinants in consumer actions. Surveys were conducted in three countries that vary in their seafood consumption habits, environmental attitudes, and culture. The results show that while previous knowledge of microplastics differs widely, when presented with microplastic information, about 90% of the respondents in all countries viewed microplastics as harmful. Mean own WTP for microplastic safer salmon was 162%, 222%, and 150% above the usual price of salmon in the US, China, and Korea, respectively. While there exists significant differences in WTP across examined nations, commonalities exist. Namely, individuals with a peer-like-oneself outlook and collectivistic values displayed significantly higher WTP for microplastic safer salmon. Promoting an equal view of peers and emphasizing the group can lead to higher WTP for less microplastic contaminated food. Policies in educating the public for these new pollutants, supporting the seafood industry to help clean up waters near the seashore, and partnering with consumers in funding the pro-environmental behavior are called for.

Willingness to pay for improving water supply continuity in case of climatic extreme natural events: an empirical approach for Chile

ABSTRACT In this study, a single-bounded dichotomous contingent valuation design was employed to examine customers’ willingness to pay (WTP) for a water company’s initiatives to increase the drinking water service’s autonomy during extreme climatic events in the Metropolitan Region of Chile in 2020. Considering that this country is a paradigmatic case of almost full access to drinking water service in urban areas, this research is one of the first attempts to measure customers’ WTP for initiatives to increase the drinking water service’s autonomy when natural extreme events occur. Findings indicate an average WTP of CLP 1,371 (USD 1.81), equivalent to 16.72% of the average water bills per month. We also found significant differences in WTP among water suppliers. Although most sociodemographic predictors are not relevant, the results regarding WTP determinants also suggest that political attitudes are especially important, revealing polarized preferences about water suppliers in need of climate change adaptation.

The value of adult orthodontics: Do the public's willingness-to-pay values reflect the profession's?

Objective:To explore how the public and dental professionals would value an orthodontic service for adults by eliciting their willingness-to-pay (WTP), a standardised health economics technique which quantifies ‘strength of preference’ in monetary terms. Despite increasing demand, adults in the UK are only eligible for NHS orthodontic treatment if there is severe dental health or complex multidisciplinary need. Orthodontic services are provided to children aged under 18 years who are eligible by their Index of Orthodontic Treatment Need (IOTN) score. Consequently, many adults who may have a need for treatment as determined by IOTN are unable to access this service.Design:Cross-sectional survey.Setting:General dental practices in North East England and national specialists approached through the British Orthodontic Society (BOS).Participants:Public participants were recruited from general dental practices. Dentists were recruited from local dental lists and members of the BOS.Methods:Participants were asked if they would be willing to pay to see an orthodontic service extended to all adults in England with a qualifying IOTN. Clinical photographs of three malocclusions were presented and maximum WTP in additional tax per household per year was elicited using shuffled payment cards.Results:A total of 205 dentists and 206 public participants were recruited. Pairwise tests showed a statistically significant difference in WTP between the public and professionals for all malocclusions, with the public giving higher valuations. In both groups, the Class III scenario elicited a higher WTP than the class I or II malocclusion. However, when all other factors were controlled for using a regression analysis, the group (public or profession) and the other variables did not significantly influence WTP.Conclusion:The public and professionals were willing to pay for an adult orthodontic service. Due to this variability and unpredictability the allocation of healthcare resources will remain contentious.

Examining sustainability surcharges for outdoor apparel using Adaptive Choice-Based Conjoint analysis

In order to explore the compensatory effects between sustainability aspects and willingness to pay (WTP), the vast majority of studies applies Choice-Based Conjoint analysis (CBC). However, this method suffers from multiple restrictions (e.g., limited number of factors includable) resulting in biased WTP estimations. In contrast, the advanced and more realistic Adaptive Choice-Based Conjoint analysis (ACBC) allows – inter alia – incorporating all facets of sustainability and capturing the nowadays increasingly complex purchase decision process holistically. No other study has measured WTP with ACBC in the context of sustainable clothing yet. Based on expert interviews, we conduct an ACBC utilizing the ‘summed price’ approach and incorporating the insights gained from the Calibration section. While the latter one allows to refine the purchase likelihood and thus, enables more accurate WTP estimations, it has yet been largely neglected by previous sustainability literature. Our findings indicate significant differences in WTP and surcharges for each feature contingent on gender and the ecological orientation of consumers. While very green consumers rather emphasize the impact of sustainability-related features (e.g., materials (18.43%), labels (12.90%), country-of-origin (13.14%)), price represents by far the most influential driver for less green consumers (42.37%), followed by design (12.54%).

Hen housing system information effects on U.S. egg demand

The U.S. egg industry has been moving rapidly towards “cage-free” aviary housing as an alternative to conventional cages for hens. A choice experiment was used to evaluate the U.S. public’s willingness to pay (WTP) for egg attributes including housing system, color, size, and certifying agency. A significant difference in WTP for hen housing systems was found using video information treatments describing hen housing systems. When respondents were shown videos of egg production systems, they were indifferent between cage-free aviary and the alternative enriched colony hen housing system whereas with no video information the respondents clearly preferred the cage-free system. Results point towards potential public misunderstanding of the costs and benefits associated with the “cage-free” egg label designation and highlight potential discrepancies between industry commitments and informed consumer preferences.

The effect of payer units on the willingness to pay in a contingent valuation survey

ABSTRACTThis study shows that a bias occurs due to the ambiguity of payer units in terms of the willingness to pay (WTP) for the provision of environmental goods in contingent valuation surveys. We use forest conservation in Shiga Prefecture, Japan as evaluation target and set up a contingent valuation survey based on three different questions that depend on the assumed payer unit (household, individual, or “strictly” individual unit). “Strictly” means the individual and household payer units are both included in the question. The results show no significant differences in WTP between household and individual payer units, while the individual WTP is more than the “strictly” individual. Assuming that respondents’ income evaluation and environmental quality recognition are correct, respondents will respond with individual WTP even if they are asked questions about household WTP. Moreover, there exists a difference in the WTP of individuals depending on whether other household members have made any payments. We called these difference “payer unit bias.” Furthermore, the survey reveals an underestimation of the aggregated value of environmental goods for household units. Therefore, it can be concluded that the contingent valuation survey should consider payer units.

Willingness-to-pay and benefit-cost analysis of chemical peels for acne treatment in China.

BackgroundThere have been few studies on economic evaluation of acne treatments. Chemical peel (CP), a treatment approach primarily aimed at removing acne hyperpigmentation and scarring, is gradually accepted in the Chinese market.ObjectivesThis study aimed to detect willingness-to-pay (WTP) and to conduct a benefit–cost analysis for CP treatment among Chinese acne patients.Materials and methodsThe costs were obtained from the patient’s perspective and compared with benefits. The net benefits were approximated by WTP, using the contingent valuation method. A glycolic acid peel served as the demonstrated example. WTP and related information were inquired via an online questionnaire among the Chinese population. Factors for WTP were identified using generalized linear models. The benefit–cost ratio (BCR) was calculated. Discounting was not considered for both WTP and costs.ResultsThe response rate of the survey was 95.4% among the 476 anonymous participants. The average cost for three-time CP treatment was USD 383.4. Statistically significant differences in WTP among the cases were identified. The mean WTP for Case 1, Case 2, and Case 3 was USD 234.6, 222.0, and 401.7, respectively. A statistically significant association between WTP and self-reported acne severity was observed for all cases after adjustments for demographic characteristics (P<0.01). The Cardiff Acne Disability Index was positively associated with WTP. The BCRs were 0.61, 0.58, and 1.4 for Case 1, Case 2, and Case 3, respectively.ConclusionPatients with acne in China are willing to pay for acne treatment. Although the benefits of CP treatment have not generally outweighed their aggregated costs, WTP for CP treatment was positively associated with self-reported acne severity and desirable efficacy of treatment. Individualized acne treatments are recommended to target a specific population in the Chinese market.

Convergent validity of alternative dependent variable specifications for individual travel cost models

Applications of individual observation travel cost models have employed two alternative dependent variable specifications, (trips) and (person-trips), defined as (trips*groupsize). For 58 National Park Service data sets, willingness to pay (WTP) was estimated using both the trips and person-trips construction. Significant differences were found in pairwise comparisons of the alternative WTP estimates in 29 of 58 cases. For a subset of 31 data sets where statistically significant travel cost parameters could be estimated under both dependent variable specifications, 23 of 31 models showed statistically significant differences in WTP between the two models. In all 23 cases of a significant difference in WTP, the specification using person-trips as the dependent variable was greater than the cases using trips as the dependent variable. Additional analysis showed that lack of dispersion in the trips variable, as measured by the percent of visitors reporting taking only one trip to the site, was positively correlated with the differences in the WTP estimates.

The value of orthodontics: Do parents' willingness to pay values reflect the IOTN?

Given the limited evidence about the benefits of orthodontic treatment, many health care systems have rationed access to orthodontic care with the Index of Orthodontic Treatment Need (IOTN) being one tool used to attempt to allocate resources based on need. However, it is not clear whether patient and public valuations of different levels of need (as described by the IOTN) reflect the resource allocation decisions. The aim of this project was therefore to determine the values parents placed on correction of malocclusions at different IOTN levels using the willingness to pay (WTP) technique. 401 parents of children attending hospital-based orthodontic clinics in the North of England were recruited to complete a questionnaire eliciting WTP for the correction of seven malocclusions with different IOTN scores. In addition demographic and orthodontic history characteristics were collected. Results were analysed with appropriate pairwise significance tests and regression. A significant difference in WTP was noted between all the possible pairs of malocclusions with the exception of overjets with moderate versus great need of treatments. At moderate levels, correction of crowding was valued less than overjet but this was reversed at great need levels. Very little of the variance in WTP was explained by the variables collected. When looking at factors affecting percentage difference between values for different pairs of malocclusions, in general, no factors predicted the magnitude of difference. Median valuations for correction of malocclusions vary significantly for different levels of need (as judged by IOTN), with increasing levels of need generating higher values. However, there was a limited effect of demographic or orthodontic characteristics on the magnitude of percentage difference in values for correcting malocclusions different levels of need.

Revisiting GMOs: Are There Differences in European Consumers' Acceptance and Valuation for Cisgenically vs Transgenically Bred Rice?

Both cisgenesis and transgenesis are plant breeding techniques that can be used to introduce new genes into plant genomes. However, transgenesis uses gene(s) from a non-plant organism or from a donor plant that is sexually incompatible with the recipient plant while cisgenesis involves the introduction of gene(s) from a crossable—sexually compatible—plant. Traditional breeding techniques could possibly achieve the same results as those from cisgenesis, but would require a much larger timeframe. Cisgenesis allows plant breeders to enhance an existing cultivar more quickly and with little to no genetic drag. The current regulation in the European Union (EU) on genetically modified organisms (GMOs) treats cisgenic plants the same as transgenic plants and both are mandatorily labeled as GMOs. This study estimates European consumers’ willingness-to-pay (WTP) for rice labeled as GM, cisgenic, with environmental benefits (which cisgenesis could provide), or any combination of these three attributes. Data were collected from 3,002 participants through an online survey administered in Belgium, France, the Netherlands, Spain and the United Kingdom in 2013. Censored regression models were used to model consumers’ WTP in each country. Model estimates highlight significant differences in WTP across countries. In all five countries, consumers are willing-to-pay a premium to avoid purchasing rice labeled as GM. In all countries except Spain, consumers have a significantly higher WTP to avoid consuming rice labeled as GM compared to rice labeled as cisgenic, suggesting that inserting genes from the plant’s own gene pool is more acceptable to consumers. Additionally, French consumers are willing-to-pay a premium for rice labeled as having environmental benefits compared to conventional rice. These findings suggest that not all GMOs are the same in consumers’ eyes and thus, from a consumer preference perspective, the differences between transgenic and cisgenic products are recommended to be reflected in GMO labeling and trade policies.

Willingness to pay for wholesome canteen takeaway

The primary objective of this study was to estimate the willingness to pay (WTP) for a new intervention at the workplace: wholesome canteen takeaways (CTA), i.e. a low fat meal with a large amount of vegetables prepared at the workplace canteen that only requires re-heating. The contingent valuation method was used to elicit the WTP. Two surveys were carried out in Denmark; one large-scale Internet based survey and one survey at a workplace that introduced CTA. The results from the large-scale survey suggest that this concept attracts relevant target groups; groups of individuals with a less healthy diet, low physical activity and a high body mass index. For males and individuals with low education, who also constitute relevant target groups, the results suggest no significant difference in WTP between males and females, whereas low educated individuals have a significantly lower WTP than highly educated individuals. However, the workplace study, carried out at a hospital, found that females have a significantly higher WTP for CTA compared with males. In conclusion, the concept appears to attract relevant target groups, although for a given price a smaller fraction of low educated individuals compared to high educated individuals would be willing to buy CTA.

Valuing Mortality Risk Reductions from Environmental, Transport, and Health Policies: A Global Meta‐Analysis of Stated Preference Studies

We conduct, to our knowledge, the first global meta-analysis (MA) of stated preference (SP) surveys of mortality risk valuation. The surveys ask adults their willingness to pay (WTP) for small reductions in mortality risks, deriving estimates of the sample mean value of statistical life (VSL) for environmental, health, and transport policies. We explain the variation in VSL estimates by differences in the characteristics of the SP methodologies applied, the population affected, and the characteristics of the mortality risks valued, including the magnitude of the risk change. The mean (median) VSL in our full data set of VSL sample means was found to be around $7.4 million (2.4 million) (2005 U.S. dollars). The most important variables explaining the variation in VSL are gross domestic product (GDP) per capita and the magnitude of the risk change valued. According to theory, however, VSL should be independent of the risk change. We discuss and test a range of quality screening criteria in order to investigate the effect of limiting the MA to high-quality studies. When limiting the MA to studies that find statistically significant differences in WTP using external or internal scope tests (without requiring strict proportionality), we find that mean VSL from studies that pass both tests tend to be less sensitive to the magnitude of the risk change. Mean VSL also tends to decrease when stricter screening criteria are applied. For many of our screened models, we find a VSL income elasticity of 0.7-0.9, which is reduced to 0.3-0.4 for some subsets of the data that satisfy scope tests or use the same high-quality survey.

Willingness to pay for a clear night sky: use of the contingent valuation method

This article applies the Contingent Valuation Method (CVM) to the issue of night sky pollution. Light pollution decreases the ability to view a clear, unobstructed night sky. We administered a survey to the students of the Rochester Institute of Technology (RIT) to obtain estimates of Willingness To Pay (WTP) to improve night sky visibility and to prevent deterioration in visibility. This is the first CVM study that attempts to distinguish between these different WTPs. We find that students are willing to pay significantly more for a larger improvement in night sky conditions. We also find significant differences in WTP to improve versus prevent deterioration in night sky conditions.

Gender and willingness to pay for insecticides treated bed nets in a poor rural area in Tanzania

To examine socio-economic and malaria related differences between males and females that may cause gender differences in willingness to pay (WTP) for insecticide treated bed nets in a poor rural area. A two-week-interval (test re-test) cross-sectional study. Kisarawe District in coastal Tanzania. Two hundred and fifty one males and two hundred dollars females were interviewed. Females had about 50% of the males' income. The monthly average income was about US dollars 10.50 for females and US dollars 20.20 for males. The proportion of respondents willing to pay for an ITN, for both males and females, declined as the ITN prices increased (P<0.05). The mean maximum WTP difference between men and women, between both rounds were not statistically significant (p>0.05). Male respondents reported a higher mean number of own underfives living in the household compared to women, the difference was not statistically significant (P>0.8). Willingness to pay for ITN was found to be independent of having an under five child with recent history of malaria. Among both males and females, there was an association between a recent experience with malaria episode and WTP, p=0.05 and p=0.02 respectively. Among females, the proportion of those willing to pay for another person, at the lowest ITN price, was significantly higher in those with under five children in their households than in those with no underfives. This was not the case among the male respondents as the association was not statistically significant. Contrary to expectations were was no statistically significant difference in WTP for an ITN between females and males. Further studies that link willingness and ability to pay are required in rural poor population, such studies may be valuable inputs to government policy on and planning of ITN interventions in the public and private sector.

Public Values for Biodiversity Conservation Policies in the Oregon Coast Range

Abstract This study uses a choice experiment framework to estimate Oregonians' willingness to pay (WTP) for changes in levels of biodiversity protection under different conservation programs in the Oregon Coast Range. We present biodiversity policy as an amalgam of four different conservationprograms: salmon and aquatic habitat conservation, forest age-class management, endangered species protection, and large-scale conservation reserves. The results indicate substantial support for biodiversity protection, but significant differences in WTP across programs. Oregonians indicatethe highest WTP for increasing the amount of forest devoted to achieving old-growth characteristics. On average, respondents indicate an annual household WTP of $380 to increase old-growth forests from 5% to 35% of the age-class distribution. Conversely, WTP for increasingconservation reserves peaks at $45 annually to double the current level to 20% of the landscape, whereas WTP is negative for any increase over 32%. We also find resistance to any change in conservation policy, which substantially offsets WTP for increases in all four conservationprograms. FOR. SCI. 50(5):589–602.

Do children matter? An examination of gender differences in environmental valuation

This paper is concerned with the role played by children in a household on choice behaviour related to willingness-to-pay (WTP) for environmental goods improvements. Data from a contingent valuation (CVM) survey dealing with three environmental improvements are used to examine three hypotheses. The first is that, after controlling for income, individuals with children have higher WTP than childless individuals. The second hypothesis is that women with children are willing to pay more for environmental improvements than men with children, particularly in the case where there is concern for environmental health risks. The third is that childless men and women exhibit significant differences in WTP that arise from greater time constraints faced by women. Estimated WTP functions are shown to be statistically different for four groups of individuals: women with children, men with children, women without children, and men without children. Parents of either gender are willing to pay more than their childless counterparts. Valuations of mothers and fathers are statistically different for only one of the three goods being evaluated. Interestingly, it is the fathers' mean valuations that are higher. This may arise from the fact that these environmental improvements lead to better recreational opportunities and, as indicated earlier, men are less time constrained. Further support for this view comes from results that show that valuations of childless men are significantly greater than those for childless women for two goods. The paper concludes with some directions for future research in the area.

Investigating starting-point bias: a survey of willingness to pay for insecticide-treated nets

The objective of this study was to investigate the existence of starting-point bias in the bidding game contingent valuation elicitation technique when determining the willingness to pay (WTP) for insecticide-treated nets (ITNs) and ITNs re-treatment in rural Nigeria. Of all existing contingent techniques, the bidding game most closely mimics the normal price taking behaviour in local markets in Nigeria. Three different starting-points (low, medium and high) were used to determine WTP for large and small ITNs, and for ITNs re-treatment, respectively. The respondents were randomly assigned to any of the starting-points and a pre-tested interviewer-administered questionnaire used to elicit WTP. Non-parametric tests and the Tobit model were used to analyse the data for evidence of starting-point bias. Plots of respondents’ cumulative density functions by starting-points were also examined to show the pattern of responses. The non-parametric tests showed no statistically significant differences between the three starting points in WTP for large ITNs ( p=0.262) and for ITNs re-treatment ( p=0.412). However, there was a statistical significant difference in WTP for small ITNs ( p=0.045). Nevertheless, in this instance, the high starting point group had a lower mean WTP than the low group, and also had the lowest median WTP amongst the three groups. However, using the conditional WTP (only males), there were no differences among the three starting-points for all goods. The multiple regression analyses using the Tobit model confirmed the results of the non-parametric tests. The plots of cumulative densities were also similar for the three starting-points for the three products. However, the high starting-point group had those more willing to pay higher amounts for large and small nets. There was no conclusive evidence of starting-point bias. Future research is required in order to gain a deeper understanding on factors determining peoples’ valuation of goods and services, reasons for any type of starting-point bias, and how the bidding game can be improved.