Single-bounded Dichotomous Choice Research Articles

Contingent Valuation on Residents' Willingness to Pay for Mangrove Rehabilitation in Baroy, Lanao Del Norte, Philippines

There were about 450,000 hectares of mangroves in the Philippines in the early 1900s which declined to 311,400 hectares in 2020 due to continued pressures from human-caused degradations such as illegal logging and conversion to fish and shrimp ponds in which rehabilitation is needed. This study, therefore, determined the factors that influence the resident's Willingness to Pay for mangrove rehabilitation in Barangay Raw-an Point, Baroy, Lanao del Norte, Philippines. Using the single-bounded dichotomous choice contingent valuation method, the willingness to pay of the local community for mangrove rehabilitation was assessed. A total of 200 households were involved in the survey. Focus Group Discussion was utilized in obtaining the bid amounts used in the survey questionnaire. The results show that 84% of the 200 households expressed willingness to pay for the mangrove rehabilitation project. Furthermore, the mean willingness to pay was computed at PHP 139.00 (2.40 USD) per household per month, equivalent to Php 665,524.00 (11,502 USD) per year for the total number of households in Barangay. The findings of the logistic regression analysis revealed that the bid amount, knowledge, and perception on both the economic importance and the ecological services provided by mangroves affect the willingness to pay on the respondents.

Consumers' Willingness to Pay for eHealth and Its Influencing Factors: Systematic Review and Meta-analysis.

BackgroundDespite the great potential of eHealth, substantial costs are involved in its implementation, and it is essential to know whether these costs can be justified by its benefits. Such needs have led to an increased interest in measuring the benefits of eHealth, especially using the willingness to pay (WTP) metric as an accurate proxy for consumers’ perceived benefits of eHealth. This offered us an opportunity to systematically review and synthesize evidence from the literature to better understand WTP for eHealth and its influencing factors.ObjectiveThis study aimed to provide a systematic review of WTP for eHealth and its influencing factors.MethodsThis study was performed and reported as per the Cochrane Collaboration and PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) guidelines. PubMed, CINAHL Plus, Cochrane Library, EconLit, and PsycINFO databases were searched from their inception to April 19, 2022. We conducted random-effects meta-analyses to calculate WTP values for eHealth (at 2021 US dollar rates) and meta-regression analyses to examine the factors affecting WTP.ResultsA total of 30 articles representing 35 studies were included in the review. We found that WTP for eHealth varied across studies; when expressed as a 1-time payment, it ranged from US $0.88 to US $191.84, and when expressed as a monthly payment, it ranged from US $5.25 to US $45.64. Meta-regression analyses showed that WTP for eHealth was negatively associated with the percentages of women (β=−.76; P<.001) and positively associated with the percentages of college-educated respondents (β=.63; P<.001) and a country’s gross domestic product per capita (multiples of US $1000; β=.03; P<.001). Compared with eHealth provided through websites, people reported a lower WTP for eHealth provided through asynchronous communication (β=−1.43; P<.001) and a higher WTP for eHealth provided through medical devices (β=.66; P<.001), health apps (β=.25; P=.01), and synchronous communication (β=.58; P<.001). As for the methods used to measure WTP, single-bounded dichotomous choice (β=2.13; P<.001), double-bounded dichotomous choice (β=2.20; P<.001), and payment scale (β=1.11; P<.001) were shown to obtain higher WTP values than the open-ended format. Compared with ex ante evaluations, ex post evaluations were shown to obtain lower WTP values (β=−.37; P<.001).ConclusionsWTP for eHealth varied significantly depending on the study population, modality used to provide eHealth, and methods used to measure it. WTP for eHealth was lower among certain population segments, suggesting that these segments may be at a disadvantage in terms of accessing and benefiting from eHealth. We also identified the modalities of eHealth that were highly valued by consumers and offered suggestions for the design of eHealth interventions. In addition, we found that different methods of measuring WTP led to significantly different WTP estimates, highlighting the need to undertake further methodological explorations of approaches to elicit WTP values.

Willingness to pay for improved water supply service in coastal urban settings: evidence from Khulna, Bangladesh

Abstract The provision of clean water and sanitation has been one of the challenging targets of the Sustainable Development Goals (SDGs) for developing countries like Bangladesh. The southern cities of the country confront the scarcity of fresh and improved water for drinking and sanitation. The study aims to investigate the demand for improved water service among city dwellers and the potential revenue for the water supply authority. The study surveyed 100 households in Khulna city by administering a simple random sampling method. The single-bounded dichotomous choice contingent valuation method revealed that years of schooling, household income, and excessive time in water collection positively affect willingness to pay (WTP) for improved water service. The households are willing to pay US$ 5.05 per month on average for enjoying improved water service, which in turn produces annual revenues of US$ 4.26 million, overriding the current level of revenue by 2.5 times. Additionally, the water supply authority is incurring around US$ 2.14 million of revenue loss annually which can be recovered by supplying improved water to the city households. This study suggests that the government may be able to address the fresh and improved water scarcity in the urban territory by capturing and utilizing the potential revenue efficiently through removing the structural barriers.

Monetary Valuation of Protected Wild Animal Species as a Contingent Assessment in North Sulawesi, Indonesia

Virtually every country has a problem with preserving protected wild animals, and some countries have their way of protecting animals through legal measures. Animals are a nation’s wealth, just as are forest timber and non-timber forest products. This asset has an economic value that is worth quantifying. Ecosystem assessment is becoming an increasingly crucial factor in determining how much the environment contributes to economic value. Such studies require additional monetary modeling and evaluation of non-market services. This research presents a willingness to pay (WTP) approach to calculate the value of protecting wild animal species. The study area was in North Sulawesi, one of Indonesia’s provinces located at the northern tip of Sulawesi Island. The questionnaire format for collecting data was the dichotomous choice contingency assessment method (DCCVM), and the sample size was 428 respondents. Based on willingness to pay, we assessed the contingency of single bounded dichotomous choice (SBDC) by estimating each protected animal’s average (mean) value in three classes, namely mammals, birds, and reptiles. The mean result of the monetary assessment of protected mammal species was IDR 1,801,870 (USD 124.27), IDR 836,670 (USD 57.70) for protected bird species, and IDR 819,700 (USD 56.53) for protected reptiles. Any loss in wild animals incurs a natural resource debt burden for future generations to repay, just as does forest loss. If we do not want to leave the forest empty for our future generations, we must continue implementing nature conservation measures, including the protection and restoration of wild animals.

User willingness to pay for natural resource conservation at Bach Long Vy Island, Vietnam

Tourism development plays a crucial role in creating employment, boosting the revenue of the economy, supporting to improve the living standard. While tourism provides many opportunities to improve the well-being of local communities, the expansion of tourism needs to be effectively managed to avoid the degradation of natural capital. Assessing resource awareness and use behavior is an effective way to determine the public’s commitment to natural resource conservation and restoration in protected areas. The research was performed in Bach Long Vy Island (BLVI) in Hai Phong city, Viet Nam which is the first National Marine protected area designated by the Vietnamese Government. The aim of this study was to estimate tourists’ Willingness to pay (WTP) for natural resource conservation at BLVI through using Contingent valuation method (CVM) with the single-bounded dichotomous choice technique and the random utility model. We estimate the average visitor WTP is VND 153 370 per year (approx. US$6.58), while the aggregate WTP of tourists for the environmental conservation is VND 7.67 million per year (approx. US$32 900) (currency conversions taken as the average rate in September 2020; US$1 to VND 23280). The calculated results show that income and gender factors have significant effects visitors WTP whereas age and education have opposite effects. The outcomes of this research demonstrate the potential tourism value of this island due to the natural amenities and high biodiversity, particularly originating from its marine ecosystems. This result provides valuable scientific information for decision makers and local authorities and should be useful in establishing strategies to prevent the deterioration of ecosystems at BLVI (e.g., an environmental charge or entrance fee), thus contributing to sustainable tourism development.

The contribution of local outdoor recreational services to the sustainable management of environmental resources: the case of Tabor Mountain Recreational Park in Hawassa City, Ethiopia

There has to date been limited research on the economic valuation of local outdoor recreational services to inform policy and practice. This study attempts to fill this gap by estimating the annual recreational value of Tabor Mountain Recreational Park, an open-access recreational site in Hawassa City (also known as Awassa City), Ethiopia. This study employs single-bounded dichotomous choice and open-ended elicitation methods using primary and secondary data collected from 260 urban residents during June–August 2019. A complementary assessment of the determinants of local visitors’ willingness-to-pay (WTP) is also carried out. Descriptive statistics and a binary logistic regression model were used to analyze the survey data. Overall, 87% and 98% of the respondents were willing to accept the initial bid value and to give non-zero maximum WTP, respectively. On average, a local resident makes/intends to make 2.57 visits per month paying a mean entrance fee of ETB 28.33 per visit, which represents approximately ETB 93,498,000 per year. Furthermore, average monthly income and the afternoon visiting-time preference of local visitors had a positive effect on individuals’ WTP. Initial bid value, frequency of visits per month, number of dependent families, and age of local visitors had a negative effect on WTP. The substantial annual local recreational value estimate of Tabor Mountain Park reveals the potential of local financing alternatives for sustainable development and management of environmental resources in similar settings.

Estimating the Willingness to Pay for Eco-Labeled Products of Formosan Pangolin (Manis pentadactyla pentadactyla) Conservation

Pangolins are currently the most smuggled mammals in the world. Meanwhile, Taiwan has demonstrated the world’s first case of the use of artificial feeding to raise pangolins to adulthood. The government has also begun to cooperate with farmers in pangolin-spotted areas. Agricultural products can earn the green label once they have passed the evaluation. The challenge is that very few farms have obtained the pangolin-friendly label so far. Our hypothesis is that farmers lack the knowledge that consumers would pay additional money for products that are labeled pangolin-friendly compared to regular ones. Thus, farmers have an insufficient incentive to apply for this label. This research aims to fill this gap by providing people with the necessary knowledge. Contingent valuation with the single-bounded dichotomous choice format was used, which involved investigating 417 valid observations. We found the following: (1) customers are willing to pay about 8.06 USD for pangolin-friendly rice (an increase of 397% in relation to the mean price of rice); (2) customers are willing to pay for about 11.46 USD for pangolin-friendly tea (an increase of 179% in relation to the mean price of tea); and (3) customers are willing to pay about 25.81 USD for pangolin-friendly coffee (an increase of 509% in relation to the mean price of coffee). Our findings give farmers more incentive to conduct eco-friendly production. Consequently, the quality of agricultural products as well as the habitats of endangered pangolins improve. Thus, consumers’ health, the environment, and the future of pangolin conservation can benefit in this attempt to achieve sustainability.

Using contingent valuation to estimate consumers’ willingness to pay for differentiated coffees in Puerto Rico

Product differentiation is a strategy used to develop products with particular attributes valued by consumers who are willing to buy them at higher prices. We use a single-bounded dichotomous choice contingent valuation method through in-person interviews (N=575) to estimate consumers’ willingness to pay (WTP) for high-quality and regular coffees produced locally. The results show that consumers are willing to pay $13.60 for a 227-g (8-ounce) bag of highquality coffee produced locally and $10.90 for regular coffee produced locally. It may be inferred that consumers are willing to pay $2.70 more for high-quality coffee, holding all else constant, which suggest that consumers value more the attribute of being locally produced than that of quality. The results also suggest that household size, income and education level of consumers can affect WTP values. We provide evidence that additional revenue can be generated by producing differentiated coffees. However, a cost analysis is required to complement this study and to better understand the economic viability of producing coffee with the characteristics evaluated in this investigation.

‘Warehouse’ or research centre? Analyzing public preferences for conservation, pre-breeding and characterization activities at the Czech genebank

Genebanks are places where crop varieties are stored, catalogued, and made available for redistribution so that their genetic diversity is not lost. Besides conserving cultivated crop diversity, some genebanks also conserve the wild relatives of crops, which can contain useful traits not present in the domesticated genepool, and can undertake other activities to make genetic diversity more usable in breeding, such as characterization and evaluation efforts and pre-breeding. We present here the results of a stated preference survey that elicits the preferences of the general Czech public for the conservation of additional wheat and wild wheat varieties, characterization and evaluation activities, and pre-breeding efforts. Czech citizens were asked whether they would be willing to make a one-time voluntary payment to finance specific, 10-year conservation programmes at the Czech genebank. Using a sequence of single-bounded dichotomous choice questions, we estimate a random effects probit model to analyze preferences for such conservation programmes. We find that Czech respondents had a strong preference for characterization and evaluation, and while they do not value pre-breeding, they are willing to pay for the conservation of additional wild wheat accessions (though not for cultivated wheat varieties). In aggregate, the estimated benefits are substantial compared to the current costs of conservation. The stated preference approach of this paper permits the estimation of the social value of crop diversity conservation and associated investments in research, including non-market values. Our results provide information of potential use for policymakers in relation to setting priorities for the funding of agricultural research.

Stated preferences: a unique database composed of 1657 recent published articles in journals related to agriculture, environment, or health

Numerous articles dealing with stated preferences are published every year in journals related to agriculture, environment, or health. Hence, it is not easy to find all the relevant articles when performing a benefit transfer, a meta-analysis, or a review of literature. Also, it is not easy to identify trends or common practices in these fields regarding the elicitation method. We have constructed and made available a unique database comprising 1657 choice experiment and/or contingent valuation articles published in journals related to agriculture, environment, or health between 2004 and 2016. We show that the number of choice experiment studies keeps increasing and the single-bounded dichotomous choice format is the most employed question format in contingent valuation studies. We also consider the new nomenclature proposed by Carson and Louviere and we show that the “discrete choice experiment” is more popular than the “matching method,” especially in journals related to agriculture.

The comparison of discrete payment vehicle methods (dichotomous choice) in improving the quality of the environment

Using methods to estimate the value of environmental goods seems to be essential for economic planning and moving toward development. In this paper, using methods of discrete payment vehicle (dichotomous choice), i.e., single-bounded and Double-Bounded Dichotomous Choice, the value of air pollution in Tehran and households’ willingness to pay to improve air quality, in four selected regions (Shahr-e-Ray, Shoosh, Haft-e-Tir and Tajrish) is estimated and the corresponding results of these two techniques were compared. The results showed that the total value of air quality improvement, calculated through two techniques of Double-Bounded and Single-Bounded Dichotomous Choice were, respectively, 2,398,657,500 and 1,492,566,000 thousands Rials (1USD = 35,000R) in a year and weighted mean of each citizen’s willingness to pay to improve air quality, calculated through these two methods was estimated to be 282,192 and 175,596 Rials in a year, respectively. Considering the annual damage to health, for any 1% increase in pollutants and yearly cost of pollution reduction which are, respectively, 1,199,000,000 and 7,336,000,000 thousands Rials, it was determined that citizens’ willingness to pay through two methods includes 20 and 30% of the cost of pollution control, respectively, while 70% of pollution is due to mobile sources. However, citizens’ low willingness to pay is attributed to citizens’ distrust of government policies as well as their ignorance of the harmful effects of air pollution. In general, the results of this study, with regard to the cost of pollution from Single-Bounded Dichotomous Choice are closer to actual market conditions.

Public Willingness to Pay for Transforming Jogyesa Buddhist Temple in Seoul, Korea into a Cultural Tourism Resource

The Jogyesa Buddhist Temple (JBT), located in Seoul, Korea, is the chief temple of the Jogye Order, which represents Korean Buddhism. The Seoul government plans to transform the JBT into a cultural tourism resource and a historical site. This study attempts to analyze the willingness to pay (WTP) for implementing the transformation, which includes building a new shopping arcade for Buddhist culture and tourism, constructing a museum for the teaching of history and an experience center for Korean traditional culture in the precincts of JBT, and making an open space for domestic and/or foreign visitors. To this end, the study looks into the WTP for the implementation, reporting on a contingent valuation (CV) survey that was conducted with 500 Seoul households. The single-bounded dichotomous choice CV model and a spike model were applied to derive the WTP responses and analyze the WTP data with zero observations, respectively. The mean yearly WTP was computed to be KRW 7129 (USD 6.30) per household for the next five years, with the estimate being statistically significant at the 1% level. Expanding the value to the Seoul population gives us KRW 25.4 billion (USD 22.5 million) per year. The present value of the total WTP amounts to KRW 114.6 billion (USD 101.3 million) using a social discount rate of 5.5%. We can conclude that Seoul households are ready to shoulder some of the financial burden of implementing the transformation.

Sequence Effects in the Valuation of Multiple Environmental Programs Using the Contingent Valuation Method

In contingent valuation, the willingness to pay for hypothetical programs may be affected by the order in which programs are presented to respondents. With inclusive lists, economic theory suggests that sequence effects should be expected. However, when policy makers allocate public budgets to several environmental programs, they may be interested in assessing the value of the programs without the valuations being affected by the order in which the programs are presented. Using single-bounded dichotomous choice contingent valuation questions, we show that if respondents have the possibility to revise their willingness-to-pay answers, sequence effects are mitigated. <i>(JEL Q51, Q54)</i>

과실 병해충에 대한 공적방제조치의 가치분석

ABSTRACT : The objective of this study is to estimate the economic value of official management and control for invasive insects and diseases in fruits. The direct and indirect effect of this control measure can be the changes in price of fruits and related goods, changes in export volume of domestic fruits, changes in total volume of fruit production, and reduce the risk in food safety. The contingent valuation method with the single-bounded dichotomous choice is employed to estimate each household’s willingness-to-pay (WTP) to maintain official management and control measures. The total number of sample consists 2,050 respondents between the ages of 19-60 years, and the survey is conducted using Web-based survey. The estimated results for mean WTP is 5,443won per month per household. Therefore, the total economic value of official management and control on fruit in Korea is estimated to be approximately 94.4 billion won per month. Key words : Disease and Insect Pest, Public Control Measure, Fruits, Contingent Valuation Method, Willingness to Pay

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.

Unwelcome environmental impact assessment for coastal protection along a 7-km shoreline in Southern Thailand

Environmental Impact Assessment (EIA) is needed for development projects that may have negative impacts on people and environment. A screening procedure plays a crucial role in determining whether an EIA is required for a particular proposal. Misjudging the EIA requirement results in the unnecessary EIA being undertaken and causes mental anguish to the people who are in trouble because carrying out the EIA takes a long time. This article presents a case study of coastal protection by detached breakwaters in Nakhon Si Thammarat province, Thailand, where an initial environmental examination found no significant environmental impact and the EIA was deemed unnecessary by coastal communities. After an engineering design of the detached breakwaters had been completed, the people, whose houses and properties were at risk of sinking into the sea, had to wait one more year for the EIA to be completed. The willingness to pay (WTP) of the people affected to bypass the EIA was measured by a single-bounded dichotomous choice approach. Their mental pain caused by waiting for the detached breakwaters was equated to aggregated WTP which was about US$ 724,160. Such a large WTP from the poor coastal dwellers sends an urgent message that the categorical screening in Thailand's EIA legislation may need some adjustments.

Estimating the economic impacts of climate change on infectious diseases: a case study on dengue fever in Taiwan

Researchers of climate change have suggested that climate change and variability has a significant influence on the epidemiology of infectious diseases, particularly vector-borne diseases. The purpose of this study is to explore how climate conditions and the dengue fever epidemic in Taiwan are related and to estimate the economic impact of climate change on infectious diseases. To achieve these objectives, two different methods, one involving the Panel data model and the other the Contingent Valuation Method (CVM), are applied in this study. At first, we use the Panel data model to assess the relationship between climate conditions and the number of people infected by dengue fever during the period from January 2000 to February 2006 in 308 cities and townships in the Taiwan. The results of the empirical estimation indicate that climate conditions have an increasingly significant impact on the probability of people being infected by dengue fever. The probability of being infected by dengue fever due to climate change is then calculated and is found to range from 12% to 43% to 87% which represent low, mid, and high probabilities of infection caused by climate change when the temperature is increased by 1.8°C. The respondent’s willingness to pay (WTP) is also investigated in the survey using the single-bounded dichotomous choice (SBDC) approach, and the results show that people would pay NT$724, NT$3,223 and NT$5,114 per year in order to avoid the increased probabilities of 12%, 43%, and 87%, respectively, of their being infected with dengue fever.

Port-induced erosion prediction and valuation of a local recreational beach

This study attempts to integrate environmental economics and coastal engineering in managing port-induced coastal erosion occurring at a common beach by using Map Ta Phut port in Thailand as a case study. The existence of the port creates coastal erosion which can be considered an externality that affects local inhabitants, and a port owner and shipping companies can be seen as “polluters”. Overlaying of aerial photographs provided strong evidence that the coastline was severely eroded after the construction of the port. Coastal engineering softwares, LITPACK and MIKE 21 PMS, were utilized to predict future shoreline positions and investigate wave patterns around the port. The port alters wave climate and the port-induced erosion is jeopardizing a local recreational beach called Nam Rin, which is projected to disappear in 5 years. A valuation of Nam Rin beach using single-bounded dichotomous choice contingent valuation method revealed individual willingness to pay (WTP) for the beach, being 867.5 baht (approximately US$ 24.8) per year. Multiplying the individual WTP with the appropriate number of population to acquire the beach protection benefit and dividing such benefit by construction and maintenance costs of a particular beach protection measure, the polluters can select a proper beach protection approach that fulfills their benefit–cost requirement.

Bovine spongiform encephalopathy in Japan: consumers' food safety perceptions and willingness to pay for tested beef*

The discovery of bovine spongiform encephalopathy (BSE), commonly known as ‘mad cow disease’, in Japan caused anxiety about consuming beef and beef products. As a result, there was a sudden fall in sales of beef that hurt the Japanese beef industry as well as major beef exporters to Japan. We analyse factors that affect Japanese consumers’ willingness to pay (WTP) price premiums for BSE-tested beef and estimate the mean WTP for BSE-tested beef using data obtained from a consumer survey in Japan. A single-bounded dichotomous choice contingent valuation model is used to recover the premium amount. We find that attitudes to food safety, reduction in beef consumption following the BSE outbreak, and being female all have a statistically significant positive effect on the WTP for BSE-tested beef. Interestingly, demographic variables such as age and income do not affect the WTP, possibly indicating that the BSE scare similarly affected multiple segments of the population. In our sample, consumers are willing to pay a premium on average of greater than 50 per cent for BSE-tested beef.

SAMSUNG SECURES POLYETHYLENE CONTRACT

This study attempts to integrate environmental economics and coastal engineering in managing port-induced coastal erosion occurring at a common beach by using Map Ta Phut port in Thailand as a case study. The existence of the port creates coastal erosion which can be considered an externality that affects local inhabitants, and a port owner and shipping companies can be seen as “polluters”. Overlaying of aerial photographs provided strong evidence that the coastline was severely eroded after the construction of the port. Coastal engineering softwares, LITPACK and MIKE 21 PMS, were utilized to predict future shoreline positions and investigate wave patterns around the port. The port alters wave climate and the port-induced erosion is jeopardizing a local recreational beach called Nam Rin, which is projected to disappear in 5 years. A valuation of Nam Rin beach using single-bounded dichotomous choice contingent valuation method revealed individual willingness to pay (WTP) for the beach, being 867.5 baht (approximately US$ 24.8) per year. Multiplying the individual WTP with the appropriate number of population to acquire the beach protection benefit and dividing such benefit by construction and maintenance costs of a particular beach protection measure, the polluters can select a proper beach protection approach that fulfills their benefit–cost requirement.