Willingness To Accept Research Articles

Would you test for 5000 Shillings? HIV risk and willingness to accept HIV testing in Tanzania.

ObjectivesDespite substantial public health efforts to increase HIV testing, testing rates have plateaued in many countries and rates of repeat testing for those with ongoing risk are low. To inform policies aimed at increasing uptake of HIV testing, we identified characteristics associated with individuals’ willingness-to-accept (WTA) an HIV test in a general population sample and among two high-risk populations in Moshi, Tanzania.MethodsIn total, 721 individuals, including randomly selected community members (N = 402), female barworkers (N = 135), and male Kilimanjaro mountain porters (N = 184), were asked in a double-bounded contingent valuation format if they would test for HIV in exchange for 2000, 5000 or 10,000 Shillings (approximately $1.30, $3.20, and $6.40, respectively). The study was conducted between September 2012 and February 2013.ResultsMore than one quarter of participants (196; 27 %) stated they would be willing to test for Tanzania Shilling (TSH) 2000, whereas one in seven (98; 13.6 %) required more than TSH 10,000. The average WTA estimate was TSH 4564 (95 % Confidence Interval: TSH 4201 to 4927). Significant variation in WTA estimates by gender, HIV risk factors and other characteristics plausibly reflects variation in individuals’ valuations of benefits of and barriers to testing. WTA estimates were higher among males than females. Among males, WTA was nearly one-third lower for those who reported symptoms of HIV than those who did not. Among females, WTA estimates varied with respondents’ education, own and partners’ HIV testing history, and lifetime reports of transactional sex. For both genders, the most significant association was observed with respondents’ perception of the accuracy of the HIV test; those believing HIV tests to be completely accurate were willing to test for approximately one third less than their counterparts. The mean WTA estimates identified in this study suggest that within the study population, incentivized universal HIV testing could potentially identify undiagnosed HIV infections at an incentive cost of $150 per prevalent infection and $1400 per incident infection, with corresponding costs per quality adjusted life year (QALY) gained of $70 for prevalent and $620 for incident HIV infections.ConclusionsThe results support the value of information about the accuracy of HIV testing, and suggest that relatively modest amounts of money may be sufficient to incentivize at-risk populations to test.

Monetary Valuation of Informal Care Based on Carers’ and Noncarers’ Preferences

ObjectivesTo elicit willingness-to-accept (WTA) values for informal care based on the preferences of informal carers and noncarers. MethodsTwo surveys were conducted with a sample of carers (n = 202) and a sample of noncarers (n = 200). Individuals in both groups were asked three questions in which they had to state the minimum monetary compensation they would require (WTA) if they had to look after a person described in a hypothetical scenario for one extra hour per day. Furthermore, carers were asked for the compensation they would demand if they had to be in charge of their actual care recipient for one extra hour per day. ResultsNo significant differences were found between the distributions of carers’ and noncarers’ WTA values. Overall, respondents’ valuations were sensitive to and consistent with their preferences over the tasks to be carried out in the extra hour of informal care. On average, carers required a lower monetary compensation for one extra hour taking care of their loved one (mean/median WTA values €5.2/€4.5) than if they had to devote that time to look after the hypothetical care recipient (mean/median WTA values €6.4/€5.5). More than half of the carers stated the same value under the two caring situations, which suggests that carers’ WTA values were influenced by their own experience providing informal care. ConclusionsOur results show that it is feasible to derive a monetary valuation for informal care from the preferences of noncarers.

Real Options and the WTP/WTA Disparity

Presents a real options model of an agent's decision to purchase or sell a good under conditions of uncertainty, irreversibility, and learning over time. The agent's willingness to pay (WTP) and willingness to accept (WTA) contain both the intrinsic value of the good and an option value associated with delaying the decision until more information is available. The model explicitly demonstrates the effect that timing of an action can have on welfare measurement.

Game form misconceptions are not necessary for a willingness-to-pay vs. willingness-to-accept gap

Cason and Plott (J Polit Econ, 122(6):1235–1270, 2014) show that subjects’ misconception about the incentive properties of the Becker-DeGroot-Marschak (BDM) value elicitation procedure can generate data patterns that look like—and might thus be misinterpreted as evidence for—preferences constructed from endowments or reference points. We test whether game form misconceptions are necessary to produce willingness-to-pay (WTP) vs. willingness-to-accept (WTA) gaps in a valuation experiment in which subjects are randomly assigned to the role of either buyer or seller. We employ a design that allows us to identify whether a subject understood the incentive properties of a price-list version of the BDM mechanism. We find a robust WTP-WTA gap, even among subjects whose elicited valuations for a good of induced and known monetary value and whose ability to identify the payoffs resulting from their choices indicate an understanding of the incentive properties of the BDM mechanism. We conclude that game form misconceptions are not a necessary condition for the emergence of WTP-WTA gaps.

Using spike model to reduce traffic congestion and improve public transportation in Malaysia

In this study, passengers’ willingness to pay (WTP) for and willingness to accept (WTA) improved public transportation and shift to public transportation in Malaysia were examined. Specifically, this study aimed to determine the factors or transport attributes that affect passenger WTA and WTP to shift to public transportation. The adopted methodology was based on a contingent valuation (CV) survey, which was conducted on a representative sample of a cross section in residents of Kajang, in Malaysia. This CV primary survey elicited the demand of passengers for improved public transportation. The spike model was adopted to avoid estimation errors caused by a large percentage of respondents who were unwilling to pay and accept at all. The estimation results showed that the best reduction rate for both travel time and cost was 45% among other amounts that range from 15% to 75%. The best parking cost increment was US$0.30 and the average WTP is US$0.68.

Environmental damage evaluation in a willingness-to-accept scenario: A latent-class approach based on familiarity

In this paper we report on the results of the application of a latent class model that was designed to identify and characterize unobserved preference heterogeneity in the context of a willingness-to-accept (WTA) framework involving negative environmental externalities stemming from the expansion of the Port of Valencia. We investigated the hypothesis that respondents with greater familiarity with the targeted good and any related environmental damage would demand more compensation; that is, they would have a significantly higher WTA. Based on respondents' familiarity with the Port of Valencia and their pre-existing knowledge about the negative consequences of its potential expansion three clusters based on six indicators are identified. Results show that, contrary to what might be expected, familiarity with a public good does not in all cases have a significant effect on stated WTA.

Reference Dependence Effects on WTA and WTP Value Functions and Their Disparity

In this study we investigate two reference dependence effects in a choice experiment. The first is the effect of the well-known distinction between gains and losses, the second is the effect of changing the reference value on willingness to pay (WTP) and willingness to accept (WTA). The latter has to our knowledge not been studied before. We hypothesize that there are differences between WTA and WTP, and that both value functions and their disparity are affected by the absolute value of the reference point. We test our hypotheses using a choice experiment with trade-offs between changes in flood probabilities and costs. The choice experiments elicit WTP and WTA, using two flood probability reference values, yielding four separate value functions. Our findings show that a substantial WTA–WTP disparity exists, and that this disparity increases when moving away from the reference point. Also, both WTA and WTP value functions are affected by the flood probability reference value, and the WTA–WTP disparity increases when the flood probability reference point increases. Both findings suggest that welfare effects caused by changes in public good provision depend not only on the direction of change (loss aversion), but also the reference value. Moreover, our results show that the latter effect is larger for losses than for gains. We introduce the concept of reference point updating as a possible explanation for these findings.

Incentives for waste cooking oil collection in South Korea: A contingent valuation approach

This study examines Korean households’ participation in waste cooking oil (WCO) collection when an incentive is provided, which has rarely been discussed in the existing literature. Using the contingent valuation method, we examine three issues. First, we investigate factors that can potentially increase participation in WCO collection, revealing that the collection system, expenditures on cooking oil, incentive levels, and the number of family members affect respondents’ participation in WCO collection. Second, we analyze the incentive level required to attract Korean households to participate in WCO collection. This level is approximated as the willingness to accept (WTA) the utility losses engendered by participation. The mean WTA value under a drop-off system is KRW 772 (USD 0.70) per liter of WCO, whereas the mean WTA under a curbside system is KRW 546 (USD 0.21) per liter. Finally, we consider the potential effects of providing an incentive for participation in WCO collection and show that this would be likely to increase WCO collection from households but would not significantly contribute to an increase in the volume of domestic feedstock for biodiesel.

Farmers' Willingness to Participate in the Next-Stage Grain-for-Green Project in the Three Gorges Reservoir Area, China.

The policy implications for success in the next-stage Grain-for-Green Project (GFGP) in China are analyzed from the perspectives of farmers' willingness. The ecological protection belt of the Three Gorges Reservoir Area was chosen as the case study area, where 1207 valid questionnaire surveys based on participatory rural appraisal were collected in 2012. Our study found that farmers with lower levels of education, older age, and higher livelihood dependency on farmland were more prone to reclamation if the compensation ended. Females and non-migrants were more reluctant to participate in the next GFGP than others. Nevertheless, traditional farming was no longer a preferred livelihood by all respondents. The majority of respondents (74.4%) wished to be liberated from the low-income farmland work through the next GFGP, and half of them (50.6%) hoped to get non-cash compensation. The Willingness to Accept (WTA) values of the next GFGP showed significant social heterogeneity and regional difference, with an average of annual RMB¥16,665 ha(-1), about 4.5 times the local compensation standard in 2000. By revealing some limitations of the uniform nationwide compensation standard system and the single payment form in adapting to evolving socioeconomic conditions, our study highlighted the importance of developing a region-based compensation standard system, integrating the next GFGP into regional sustainable development organically by more comprehensive alternative policy, and bonding a vertical partnership between the local community and the nation. Our study revealed some key elements for success in the future design of restoration projects in China.

Mitigating Production Practices and Antibiotics Use in Meat Industries Prone to Economies of Scale by Institutional Novelties, Marketing and Voluntary Actions

<p>Achieving improved standards in animal husbandry (including less use of antibiotics) through appropriate interventions has become a matter of public concern. It is currently both, hot­ly debated and a challenge for food economics. The question is: how can one achi­eve change in a given environment of property rights and interests? This paper offers a novel appro­ach inten­ded for conflict solving in meat industries which are prone to economies of scale, which are under interna­tional and com­petitive pricing and which experience structural change. In parti­cu­lar, in case of: (i) economies of scale favouring large-scale production and high stocking den­sities (sup­ported by increased antibiotic use), (ii) political power about resistance to regu­late (avoiding strong interference), but also in contrast to (iii) consumers' wishes and willing­ness to pay (WTP for a change in production modes), there is a problem of coordination and institutions. In this article, the issue is delineated as a problem of political bargaining and cre­ating marketing channels (bro­ker and ag­ency) which shall actively pursue promotion of reduc­ed antibiotics use (specifically through redu­ced stocking density) as well as negotiations on compen­sations (for cost increase). Produ­cers are outlined with regards to scheme participation along willingness to ac­ce­pt (WTA). Stocking density reduction is used as proxi for more healthy an­i­­mal rearing met­hods. We establish interest functions and show how a bargain can be modelled in the tradition of Zusman’s political economy. Barga­in­ing involves power coef­fi­ci­ents for brokerage (premium sharing) as well as an agency (called FSA); the ag­ency is modelled as a bureaucracy op­timizing modified costs and benefits. In fact, the agency maxi­mi­zes its budget and ensures participation of willing producers to join programs. Finally we refer to ways how to solve the issue in modes of political economy models. The assumption is that asym­metric information prevails and consumers are willing to pay (WTP) for healthy food.</p>

Port expansion and negative externalities: a willingness to accept approach

Port expansion has been seen as the origin of negative externalities, affecting local residents’ well-being and contributing to the poor public image of ports. In this study, the contingent valuation method is used to estimate the costs borne by local residents as a consequence of the negative externalities derived from the growth of the Port of Valencia (Spain) in the last 30 years. As transport project appraisal has become more complex, this technique complements existing methodologies in this field, such as the social cost benefit analysis and the multicriteria analysis. Given the perceived property rights of families that have been living close to the port for a long time, a willingness to accept (WTA) framework was used. The econometric analysis undertaken reveals that among the different externalities derived from this growth, the only concern that truly affects individuals’ WTA is the reclamation of land from the sea during the port’s expansion. Finally, the results obtained show that the present value of the costs potentially borne by local residents ranges from a minimum value of €64.4 million to a maximum value of €107.4 million, depending of the aggregation criterion chosen.

"Selling" value: the influence of language on willingness-to-accept.

In behavioral economics, the “endowment effect” describes the robust finding that prices people are willing to accept (WTA) for a good exceed prices people are willing to pay (WTP) for the same good. The increase in WTA values is often explained by the sellers’ negative hedonic response to losing their item. Recent studies, however, show that subtle cues may change participants’ perspective, influencing their valuations. We hypothesized that implicit connotations of instructional language may be one of those cues. To test this hypothesis we manipulated the wording of instructions in two conditions: in the Sell condition, subjects were endowed with a set of pens and asked to select an amount of money for which they would sell the pens back and in the Take condition, subjects were endowed with the pens and asked to select an amount of money they would take for the pens. Participants in each condition also estimated the market value of the pens. Consistent with our hypothesis, WTA in the Sell condition was higher than in the Take condition, though there were no differences in market values between conditions. These findings show that instructional language does influence participant valuations. Furthermore, we suggest that those being asked to “sell” use their market estimations as the salient reference point in the transaction.

Forest owners' willingness to accept contracts for ecosystem service provision is sensitive to additionality

A key prerequisite to ensure that payment for ecosystem services is effective is that the management measures landowners are paid to undertake are in fact additional to the status quo and hence bring about a change in provision.We investigated Danish forest owners' preferences for conditional contracts for the provision of ecosystem services in Natura 2000 policies in a sample covering 12.5% of the total private forest area. This involves allowing old trees to decay naturally, setting aside forest areas, accepting a fixed percentage of broadleaves and increasing access for the public. Forest owners may already provide some of these, e.g., if they derive private benefits from them, in which case additionality becomes an issue. This study investigates the link between forest owners' current management and their willingness to accept (WTA) payments for providing specific ecosystem services by eliciting current practice prior to a choice experiment on contracts. For most of these ecosystem services, owners differentiate their WTA significantly according to their current management. Owners who did not provide extended access had a mean WTA of €14/ha/year for accepting access up to 15m from roads and paths and €28/ha/year for accepting access everywhere in their forest. However, forest owners who already allow extended access have a mean WTA around zero.

Kesediaan Menerima Pembayaran Jasa Lingkungan Air Sub Das Way Betung Hulu Oleh Masyarakat Kawasan Hutan Register 19 (Studi Kasus Di Desa Talang Mulya Kecamatan Padang Cermin Kabupaten Pesawaran)

ABSTRACT One of the solution utilize to overcome damage of DAS Way Betung hydrology function is apply of Payment for Environmental Service (PES) for forest and land rehabilitation. PES is needs to be studied more in depth, especially the level of value willingness to accept payment by people as environmental service provider. The purposes of this research are knowing value of willingness to accept (WTA) the people regarding PES of upstream Sub DAS Way Betung and factors to influence it with knowing incentive forms who wanted by the people. Method used in this research are Willingness to Accept analysis, regression analysis and descriptive analysis qualitative. Based on the result, the average of WTA respondent in the location of research is Rp 8.552,63 per tree per year. If the number of trees in the mix community garden is 1.462 trees, then it will be obtained the total value of WTA Talang Mulya village is Rp 12.503.945,06 per year. Factors which significant influenced to WTA value that are level education, age and status of arable land. Incentive forms who wanted by respondent are cash money, rural development, seedlings and fertilizer donations and also farm animal. Keywords: payment for environmental service, WTA, DAS Way Betung

Ecological compensation based on willingness to accept for conservation of drinking water sources

Ecological compensation is a powerful environmental economic tool for environmental protection in areas where drinking water sources are located. We established an ecological compensation accounting system based on respondents’ willingness to accept (WTA). In this system, stakeholder preferences and the factors that influence them can be gauged effectively using logit and tobit models. We applied this accounting system to ecological compensation for the Miyun Reservoir, Beijing, China. The average WTA value for Miyun Reservoir residents was approximately 1186 CNY per family in 2012, which could be set as a suitable compensation standard, since it is slightly higher than the local protection cost. Thus, the annual total ecological compensation could be 58.73 million CNY. Distance from the reservoir, job types, and attitude to environmental protection were variables with significant effects on WTA. In addition, trends for individual preferences were identified via an analysis of key influential factors. The results suggest some useful information for establishing ecological compensation mechanisms for conservation of drinking water sources. Suggestions include popularizing the concept and meaning of ecological compensation among residents, setting different compensation levels based on distance from the reservoir, considering the requirements of farmers, and taking various in-kind and out-of-kind compensation approaches.

English

Formal institutional ecosystems management has been in existence since the creation of the Yellowstone National Park in the United States of America in 1872. Subsequently, many countries, including Zambia have evolved both legislative and policy frameworks for protecting various ecosystems. This move implied creating institutions to manage such areas accompanied by a statute to police the given area. Offenders are punished for breaking the law that protects the given resource. The results from such actions have been a growing conflict between the local communities and the ecosystem or resource management institution. In order to create harmony, ecosystems managements, in some sectors have evolved new strategies of sharing management responsibilities and benefits with local communities. This specific resource is in the wildlife sector in Zambia. The need to balance management costs and the benefits from the ecosystem services thus arises. However, in order to strike a reasonable balance, consideration should be given to adopting additional management tools for evaluating ecosystems so that one can place an economic value on any given resource. The major tool that has seen wide application in Zambia has been the Environmental Impact Assessment (EIA). However, methods for carrying out economic evaluation of ecosystems exist and have been developed over the years elsewhere. They include the Travel Cost Method (TCM). This method uses a surrogate market to estimate a consumer surplus and is site specific. The second common method is the Contingent Valuation Method (CVM) that solicits for a respondents willingness to pay (WTP) for an improvement to an environmental good or the willingness to accept (WTA) for a loss or partial loss of an environmental good using a hypothetical market. As a tool, the CVM can also be used in calculating a cost benefit analysis for a project in a given area and there by arriving at an economic decision. The method can also be used in a failed or derelict ecosystem reclamation and restoration efforts. Any conservation effort should consider the local community needs. Key words: Contingent valuation method (CVM), travel cost method (TCM), willingness to pay (WTP), willingness to accept (WTA), environmental impact assessment (EIA).

Households Willingness to Accept Collection and Recycling of Waste Cooking Oil for Biodiesel Input in Petaling District, Selangor, Malaysia

The main reasons for the recent growing concern about waste cooking oil (WCO) are the resulting effects of its improper disposal on one hand and viability input in biodiesel production on the other. This study applied contingent valuation method (CVM) to estimate households’ willingness to accept (WTA) collection and recycling of WCO in Petaling district, Selangor, Malaysia. The results revealed that the bid, income level, age level, higher educational level (university), Malay, Chinese, and female were the significant predictors of WTA. The mean WTA of the households was MYR 0.72 per kg of WCO and the annual running cost for the programme was MYR 9, 438, 829. These results will help the relevant authorities in their efforts to enhance WCO collection and recycling programme in Petaling District, Selangor.

Reference-Dependence Effects in Benefit Assessment: Beyond the WTA–WTP Dichotomy and WTA–WTP Ratios

Willingness-to-pay (WTP) values and willingness-to-accept (WTA) values have received considerable attention, but the role of reference-dependence effects is more diverse. Policies involving cost and risk may have reference point effects with respect to both cost and risk, leading to four potential valuation measures. Experimental evidence for water quality policies suggests that the cost reference effects are particularly influential in that context. There is, however, no evidence of significant reference effects for labor market estimates of the value of a statistical life. Sound application of benefit values other than WTP measures requires pertinent empirical evidence and an assessment of the underlying rationality of the determinants of the reference-dependence effects.

Using Former Farmland for Biomass Crops: Massachusetts Landowner Motivations and Willingness to Plant

Producing biomass energy requires extensive land resources. In western Massachusetts, where almost 90 percent of former farmland is no longer in commercial use, we study factors that motivate landowners to grow biomass energy crops. A geographic information system model identifies a landowner population, and a contingent valuation survey reveals payments landowners are willing to accept (WTA) for growing biomass crops. The median WTA estimate is $321 per hectare per year, which is high compared to regional land rental rates. Nonpecuniary factors appear to be as important in landowner acceptance as profit opportunities, especially for nonfarmer landowners.

Gender differences in the endowment effect: Women pay less, but won’t accept less

AbstractWe explore different contexts and mechanisms that might promote or alleviate the gender effect in risk aversion. Our main result is that we do not find gender differences in risk aversion when the choice is framed as a willingness-to-accept (WTA) task. When the choice is framed as a willingness-to-pay (WTP) task, men are willing to pay more and thus exhibit lower risk aversion. However, when the choice is framed as a willingness to accept task, women will not accept less than men. These findings imply gender differences in the endowment effect. We also find that the effect size of the gender difference in risk aversion is reduced or eliminated as the context changes from tasks framed as gambles to other domains; and that attitudes toward gambling mediate the gender effect in gambling framed tasks.