Willingness To Accept Research Articles

Payments for Watershed Ecosystem Services in the Eyes of the Public, China

Recent decades have witnessed an increased development of schemes for payment for watershed ecosystem services (PWES). However, the public is usually excluded from PWES systems. Reliable and empirical research on PWES from the public perspective is scarce. Aiming to understand public perceptions, attitudes, participation, and responses to PWES, this paper investigated local residents living in the Yongding River watershed area through a face-to-face questionnaire survey. The results showed that the public had limited knowledge of PWES. The public was keen to be involved in PWES decision-making, but the current level of public participation was very low. Regarding willingness to pay (WTP) and willingness to accept (WTA), nearly 55% of the respondents supported paying the upstream residents for protecting the environment if they were beneficiaries in the downstream areas, while 85% of the respondents agreed to accept compensation if they were contributors to environmental improvement in the upstream areas. Although some of the respondents’ daily lives were affected by the watershed environment, they were reluctant to pay, reflecting a sign of “free-riding”. The regression analysis showed that public concerns, values, knowledge of PWES and the watershed environment, and demographic factors determined the WTP and WTA. The results of the contingent valuation method and opportunity costs method showed that the annual payment for headwater conservation areas (Huailai and Yanqing) ranged from CNY 245 to 718 million (USD 36 to 106 million). This study contributes to our limited knowledge and understanding of public sentiment and makes recommendations for improving public receptivity to PWES.

Revisiting the Gap between the Willingness to Pay and Willingness to Accept for Public Goods

Large differences between willingness to pay (WTP) and willingness to accept (WTA) compensation measures have raised concerns over the validity of stated preference methods for valuing public goods. These differences have also motivated the use of WTP scenarios, even where property rights imply a WTA framing. We argue that WTA-WTP gaps can be reduced by deploying incentive-compatible surveys and controlling for game form misconceptions, including a failure of respondents to view the survey as consequential. In a study of large-scale wetland conservation, and using a scenario-specific consequentiality measure, we find that the WTA/WTP ratio is between 4.8 and 6.5 for respondents unlikely to have perceived the survey to be consequential. The ratio falls below 2 for respondents likely to hold consequentiality beliefs. Using incentive-compatible mechanisms and controlling for game form misconceptions could be the path to ensuring valid welfare estimates.

Herdsmen's willingness to accept compensation for grazing ban compliance: Empirical evidence from pastoral China

Payment for ecosystem services (PES) has gained popularity in balancing environmental degradation and economic development. However, many of its key features, particularly price differentiation, are often not considered during design and implementation. Taking China's grassland ecological compensation policy as an example, we empirically examine herders' willingness to accept (WTA) compensation for grazing ban compliance, based on a survey dataset of 352 herder households in the pastoral areas of the Gansu and Qinghai provinces in China. A double-bounded dichotomous choice contingent valuation design was adopted, with interval regression and bivariate probit models adjusted for potential bid anchoring utilized to obtain reliable WTA estimates. The results show that the mean WTA ranges between CNY 193 and CNY 274 per mu, which is significantly higher than the present universal compensation level. Herdsmen's WTA is significantly and positively associated with household size and having migrant worker family members, while it is negatively influenced by age, environmental perception , household income, and sandy soil. We suggest that the basic institution of China's grassland ecological compensation policy (GECP) should be reformed to allow price differentiation, bottom-up participation, and performance-dependent payments. • We examine herdsmen's willingness to accept (WTA) for grazing ban compliance. • A double-bounded dichotomous choice contingent valuation design is adopted. • Estimated WTA is substantially larger than the current compensation level. • WTA decreases with herdsmen's environmental perception. • Price differentiation and bottom-up participation should be allowed.

Assessing Farmer Incentives for Transitioning Toward Sustainable Agriculture and Provisioning of Clean Water

Farms are a major source of water pollution in the form of nutrient run off that cause harmful algal blooms and anoxia, both signs of deteriorating water quality. Current policies that incentivize the adoption of nutrient management practices (NMPs) are insufficient, especially as climate change increases the frequency and intensity of flooding. To evaluate the incentives of current policy designs, we implemented a conjoint analysis on survey data collected in the Missisquoi and Lamoille watersheds of Lake Champlain Basin in three waves (2013, 2015, 2020). Using panel and cross-sectional observations over the three waves, we investigate farmers' willingness to accept (WTA) payment for NMPs that improve soil health and reduce nutrient runoff. We identified farmers' WTA for the adoption of three NMPs, cover cropping, conservation tillage, and buffer strips. The approach quantifies gaps between the incentives offered by the current federal conservation programs and payments preferred by farmers as well as the relative importance of NMP attributes. The influence of the payments decreased over the course of the three survey waves, suggesting the characteristics of NMPs are driving farmers' preferences for them. Our analysis shows farmers WTA is 1.13–6 times higher than what existing incentive programs offer. The incentive gaps between WTA and the cheapest of NMPs offered by EQIP are $55.61 for tillage, $103.60 for cover crop and $37.62 for buffers. Designing policy instruments to reduce this gap, the federal programs and policies will be more effective at scaling up the adoption of NMPs by farmers as a tool for sustainable watershed management.

먹거리 지원사업 추진방식별 수혜자 후생효과 실증분석

Lack of empirical research substantiates the economic theory that electronic vouchers significantly have more impact on beneficiaries’ utility than discounts and in-kind transfers. In this respect, we evaluate the magnitude of the utility increase in money-metric value. We hypothesize a situation of policy integration and employ a contingent valuation method to assess the willingness to accept (WTA) occurred by a degradation in consumer food options. We discovered that beneficiaries can achieve a higher level of welfare when benefits are paid through electronic vouchers. Also, we proved that the welfare effects of adopting an e-voucher system are higher among consumers who are currently supported by electronic voucher programs compared to others.

Exploring Factors of the Willingness to Accept AI-Assisted Learning Environments: An Empirical Investigation Based on the UTAUT Model and Perceived Risk Theory.

Artificial intelligence (AI) technology has been widely applied in many fields. AI-assisted learning environments have been implemented in classrooms to facilitate the innovation of pedagogical models. However, college students' willingness to accept (WTA) AI-assisted learning environments has been ignored. Exploring the factors that influence college students' willingness to use AI can promote AI technology application in higher education. Based on the Unified Theory of Acceptance and Use of Technology (UTAUT) and the theory of perceived risk, this study identified six factors that influence students' willingness to use AI to analyze their relationships with WTA AI-assisted learning environments. A model including six hypotheses was constructed to test the factors affecting students' WTA. The results indicated that college students showed “weak rejection” of the construction of AI-assisted learning environments. Effort expectancy (EE), performance expectancy (PE), and social influence (SI) were all positively related to college students' WTA AI-assisted learning environments. Psychological risk (PR) significantly negatively influenced students' WTA. The findings of this study will be helpful for carrying out risk communication, which can promote the construction of AI-assisted learning environments.

Contingent Valuation Study for Selected Beach Areas in San Francisco, Surigao Del Norte for its Environmental Conservation

Beaches are one of the tourist attractions in many countries; it views as an ecosystem that would create benefits due to its scenic beauty. Diaz Beach and Banbanon Pebble Beach are commonly known tourist spots in the municipality of Anao-aon, hence, these two are the chosen study area that was conducted as it meets the standards of our research that aimed to evaluate the maintenance and conservational status. To some extent, implementation of Willingness to Pay and Willingness to Accept a branch of the Contingent Valuation Method serve as requisite that individuals need to indicate their preferences for environmental assets, or to alternate in a resourceful status. Beachgoers are targeted to determine their amount of WTP and WTA, such that their perceptions are a key to assessing the factors for beach usage. The researchers adopted a survey questionnaire that determined their willingness to pay (WTP) for the beach environmental maintenance, conservation, and willingness to accept (WTA) in reducing plastic wastes particularly cellophane and bottles, and the pre-determined factors affecting their preference in using the beach. The proposed entrance fee (20php) that served as biddings of promoting sustainable usage and development was rejected. On the other hand, in Willingness to Accept, the highest preferred amount for the price of cellophane is Php 4.00 while for the plastic bottle is Php 6.00. Thus, the outcome of WTA was inevitable to create potential environmental services and maintenance. The compensation of cellophane and plastic bottle is a good factor in implementing rules and regulations at its essential aspect of promoting sustainable usage and development for the present and future generations.

Contingent Valuation Study for Selected Beach Areas in San Francisco, Surigao Del Norte for its Environmental Conservation

Beaches are one of the tourist attractions in many countries; it views as an ecosystem that would create benefits due to its scenic beauty. Diaz Beach and Banbanon Pebble Beach are commonly known tourist spots in the municipality of Anao-aon, hence, these two are the chosen study area that was conducted as it meets the standards of our research that aimed to evaluate the maintenance and conservational status. To some extent, implementation of Willingness to Pay and Willingness to Accept a branch of the Contingent Valuation Method serve as requisite that individuals need to indicate their preferences for environmental assets, or to alternate in a resourceful status. Beachgoers are targeted to determine their amount of WTP and WTA, such that their perceptions are a key to assessing the factors for beach usage. The researchers adopted a survey questionnaire that determined their willingness to pay (WTP) for the beach environmental maintenance, conservation, and willingness to accept (WTA) in reducing plastic wastes particularly cellophane and bottles, and the pre-determined factors affecting their preference in using the beach. The proposed entrance fee (20php) that served as biddings of promoting sustainable usage and development was rejected. On the other hand, in Willingness to Accept, the highest preferred amount for the price of cellophane is Php 4.00 while for the plastic bottle is Php 6.00. Thus, the outcome of WTA was inevitable to create potential environmental services and maintenance. The compensation of cellophane and plastic bottle is a good factor in implementing rules and regulations at its essential aspect of promoting sustainable usage and development for the present and future generations.

Socio-Economic Aspects of Centralized Wastewater System for Rural Settlement under Conditions of Eastern Poland

This paper presents a case study concerning multivariate analysis, including social and financial aspects, as well as environmental impacts, of the organized sanitation development under conditions of the selected rural settlement in Poland. Three technologically up-to-date variants of sanitary sewerage network concepts with the different assumed sewage transport, i.e., pressure, pressure-gravity and gravity, were proposed together with the investment and operation and maintenance costs estimation. The willingness-to-accept (WTA) and willingness-to-pay (WTP) survey was used to analyze the level of social acceptance and involvement. The financial analysis covered two economic and cost-efficiency dynamic indicators, benefits–costs ratio (BCR) and dynamic generation cost (DGC), commonly used to support the decision-making process. The environmental aspects were assessed by the possible anthropopressure caused by sewerage leakage and odor emissions. Results of the WTA and WTP survey presented a significant level of acceptance and involvement of the local population to sustain the improved sanitation. The determined values of DGC indicated low cost-efficiency of the gravity system, while obtained values of BCR for all variants and the actual regional sewage fees showed the low profitability of improved sanitation, i.e., BCR < 1.0. All studied sanitation systems were assessed positively due to their environmental impacts. The performed studies showed that, despite the declared willingness to accept the organized sanitation and to pay the sewage fees, the economical sustainability of the proposed designs is doubtful over the longer time duration due to the significant capital and operation costs affecting the sewerage payment value.

On the economic evaluation of online learning in higher education during the COVID-19 pandemic: a willingness-to-accept approach

Purpose This study, using a contingent valuation approach, aims to shed light on the economic evaluation of online learning during the first wave of the pandemic. Design/methodology/approach A sample of 959 higher education students was asked about their willingness-to-accept (WTA) a monetary compensation for the loss of well-being resulting from the unexpected and mandatory transition to the online space. In explaining WTA determinants, the authors test the appropriateness of the double-hurdle model against the alternative of a Tobit model and find that the factors affecting the participation decision are not the same as those that affect the quantity decision. Findings Results show that a vast majority of the respondents think that the abrupt transition to online learning is detrimental to them, while those willing to accept a monetary compensation account for 77% of the sample, being the mean WTA between €448 and €595. As expected, WTA decreases with income and age, and it increases if some member of the family unit is unemployed. By aggregating the mean WTA by the population affected, total loss of well-being is obtained. Originality/value To the best of the authors’ knowledge, to date, this method has not been used to value online learning in a WTA framework, much less in the particular context of the pandemic. Thus, based on the understanding that the economic evaluation of online learning could be very useful in providing guidance for decision-making, this paper contributes to the literature on the economic evaluation of higher education.

Distributional policy impacts, WTP-WTA disparities, and the Kaldor-Hicks tests in benefit-cost analysis

I examine how inequality in the distribution of income and a quasi-fixed good (e.g. environmental quality) can affect the disparity between aggregate willingness to accept (WTA) and willingness to pay (WTP) for policies that induce joint, nonmarginal and heterogeneous changes to income and the quasi-fixed good. These disparities can generate divergent conclusions from benefit-cost analysis (BCA). With Cobb-Douglas preferences, I show that greater inequality in policy impacts to the quasi-fixed good generally increases the range of conflicting conclusions from BCA using the Kaldor criterion (compensating variation) versus the Hicks criterion (equivalent variation). In two examples, I show that for any set of impacts to the quasi-fixed good there exists a degree of inequality in which the Kaldor-Hicks tests disagree. This disagreement arises because, with inequality, seemingly marginal policy changes can become nonmarginal when concentrated among marginalized or privileged groups, which can widen the gap between aggregate WTP and WTA. With CES preferences, when the goods are complements, WTA may be infinite, and when they are substitutes, budget constraints attenuate WTP: Both effects push the Kaldor-Hicks tests in opposing directions. I conclude that greater inequality increases the relevance of questioning whether to elicit WTP or WTA in nonmarket valuation for BCA.

US workers' willingness to accept meatpacking jobs amid the COVID-19 pandemic.

We implement a discrete choice experiment to examine the impact of COVID‐19 exposure risk, unemployment risk, enhanced and extended unemployment benefits, and job attributes on low‐skilled workers' willingness to accept (WTA) meatpacking jobs. With a sample average WTA wage of $22.77/h, the current national average meatpacking wage of approximately $15/h is too low for these workers to consider this employment opportunity. Enhanced layoff risk and exposure to COVID‐19 further deterred respondents, while health insurance, retirement benefits, and a signing bonus enhanced respondents' WTA. The additional unemployment benefits of the CARES Act neither deterred nor encouraged respondents WTA.

To sell or not to sell? Pricing strategies of newly-graduated artists

The paper investigates the pricing strategies of newly-graduated artists and identifies innovative strategies more suited to achieving sustainable practice. Our work is novel in investigating the drivers of discrepancies between artists’ willingness-to-accept (WTA) and potential customers’ willingness-to-pay (WTP). Using mixed-methods, we explore the viewpoints of the ‘public’, by survey, and of ‘newly-graduated artists’ and ‘intermediaries’, by interviews, and interrogate price lists and sales records. Newly-graduated artists find pricing challenging, leading to ‘underpricing’ or ‘over-pricing’. Few artists make sales, reflecting discrepancies between WTA and WTP. Our work has theoretical and practical implications. Pricing reflects the ‘endowment effect’ (Thaler, 1980) and Bourdieu’s ‘avant-garde’ circuit. Our results imply a need for educational institutions and other intermediaries to offer more advice to newly-graduated artists who might benefit from adopting forms of personalized or participative pricing such as ‘Pay What You Want’ and, given the emergence of digital markets, contemporary techniques such as ‘action rules’.

Vaccine hesitancy and monetary incentives

Vaccine hesitancy is a significant barrier to reaching herd immunity and exiting the Covid-19 pandemic. This study examines the potential effectiveness of monetary incentives in conjunction with informational treatments about vaccine efficacy, lack of side effects, and zero costs. We elicit monetary valuations (both positive and negative) for the coronavirus vaccine by conducting an online randomized experiment on a representative sample of 2461 individuals across the US. The study elicits vaccination uptake, then participants’ valuations (willingness to pay (WTP) or the willingness to accept (WTA)) for the vaccine based upon the stated choice of participants to accept or reject the vaccine. We find that a $1000 incentive increases vaccination uptake up to 86.9%. We identify two distinct segments among the vaccine hesitants—“Reluctants” and “Unwillings”. Reluctants can be persuaded to vaccinate for some level of monetary incentive, whereas Unwillings indicate that no amount of monetary incentive will persuade them to vaccinate. The Unwillings are more likely to (a) think that the disease is insufficiently severe, (b) have less faith in the public health system, (c) be older, compared to the Reluctants.

What Is Personal Information Worth? Exploring the Extension of the Endowment Effect into Close Others

Individuals attach greater value to the goods they own, and personal information is no exception. This phenomenon of an individual’s valuation disparity is known as the endowment effect. The endowment effect is generally interpreted as the disparity between an individual’s willingness to accept (WTA) a proposal to trade information and the person’s willingness to pay (WTP) for protecting information. However, very few information studies have investigated whether the endowment effect can be extended in terms of intangible goods, such as personal information. This study elucidates whether the endowment effect exists in the information of the self, close others, and acquaintances. Drawing on the self-expansion and self-extension theories, we conducted a scenario-based field experiment to investigate how individuals monetarily valuate these aspects. The results demonstrated the endowment effect in terms of personal information and established that it was extended through two sides: possession (personal information) and ownership (close others). Individuals add more value to personal information and that of close others. This study deepens knowledge on the endowment effect and privacy valuation, and provides theoretical evidence and new perspectives for practitioners and multifarious realms, including laws, policies, security, and marketing strategies. It calls for innovations in the management of personal information.

Population preferences for non-pharmaceutical interventions to control the SARS-CoV-2 pandemic: trade-offs among public health, individual rights, and economics

ProblemPolicymakers must decide on interventions to control the pandemic. These decisions are driven by weighing the risks and benefits of various non-pharmaceutical intervention alternatives. Due to the nature of the pandemic, these decisions are not based on sufficient evidence regarding the effects, nor are decision-makers informed about the willingness of populations to accept the economic and health risks associated with different policy options. This empirical study seeks to reduce uncertainty by measuring population preferences for non-pharmaceutical interventions.MethodsAn online-based discrete choice experiment (DCE) was conducted to elicit population preferences. Respondents were asked to choose between three pandemic scenarios with different interventions and impacts of the Corona pandemic. In addition, Best–worst scaling (BWS) was used to analyze the impact of the duration of individual interventions on people’s acceptance. The marginal rate of substitution was applied to estimate willingness-to-accept (WTA) for each intervention and effect by risk of infection.ResultsData from 3006 respondents were included in the analysis. The DCE showed, economic effect of non-pharmaceutical measures had a large impact on choice decisions for or against specific lockdown scenarios. Individual income decreases had the most impact. Excess mortality and individual risk of infection were also important factors influencing choice decisions. Curfews, contact restrictions, facility closures, personal data transmissions, and mandatory masking in public had a lesser impact. However, significant standard deviations in the random parameter logit model (RPL) indicated heterogeneities in the study population. The BWS results showed that short-term restrictions were more likely to be accepted than long-term restrictions. According to WTA estimates, people would be willing to accept a greater risk of infection to avoid loss of income.DiscussionThe results can be used to determine which consequences of pandemic measures would be more severe for the population. For example, the results show that citizens want to limit the decline in individual income during pandemic measures. Participation in preference studies can also inform citizens about potential tradeoffs that decision-makers face in current and future decisions during a pandemic. Knowledge of the population’s preferences will help inform decisions that consider people’s perspectives and expectations for the future.Survey results can inform decision-makers about the extent to which the population is willing to accept certain lockdown measures, such as curfews, contact restrictions, lockdowns, or mandatory masks.

Using Willingness to Pay and Willingness to Accept to Value Farmland Preservation under Ambiguous Property Rights and Preference Uncertainty

We use a paired-sample binary choice experiment to estimate willingness to pay (WTP) and willingness to accept (WTA) values when land is converted from agriculture to developed uses in Alberta, Canada. Validated principles for stated preference are followed in scenario design, elicitation format, experimental design, and ancillary questions. Preference uncertainty is addressed through alternative calibration of uncertain responses. Reliability and incentive compatibility measures indicate that respondents found both WTP and WTA scenarios to be plausible and incentive compatible. WTA-WTP value gaps are smaller than most previous studies, with consequentiality increasing WTA, WTP, and the gap between WTA and WTP.

Household Customers’ Cost of Interruption: Survey Study on Summer Electricity Peak of Xi’an City

In light of China’s Carbon Neutrality Target and facing the fluctuating pressure of power supply brought on by new energy intermittent power generation, it is urgent to mobilize a large number of residential flexible loads that can respond instantaneously to mitigate peak–valley difference. Under a framework of demand-side management (DSM) and utility analysis, we empirically investigate customers’ costs from interrupting typical electrical terminals at the household level. Specifically, by using the contingent valuation method (CVM), we explore the factors that affect households’ Willingness to Accept (WTA) of voluntarily participating in the interruption management during the summer electricity peak and estimate the distribution of households’ WTA values. We find that given the value of WTA, households’ participation rate in the interruption management significantly decreases with the increase in interruption duration and varies with the type of terminal appliance that is on direct interruption management. Moreover, the majority of households are willing to participate in the interruption management even if the compensation amount is low. The factors that determine households’ WTA and the size of their influences vary with the type of electrical terminal. The results imply that differentiating the terminal electricity market and accurately locking on the target terminals by considering the household heterogeneity can reduce the household welfare losses arising from DSM.

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

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

Willingness to accept (WTA), willingness to pay (WTP), and the WTA/WTP disparity in Chinese social media platforms: Descriptive statistics and associations with personality and social media use

The amount of money individuals were willing to accept (WTA) to discontinue using prominent Chinese social media platforms (WeChat/QQ), the willingness to pay (WTP) for using these platforms, as well as WTA/WTP disparities were investigated in between-groups and within-subjects design studies to examine their existence, size, and psychological correlates in the form of personality and social media use habits.Individuals were recruited at Chinese universities in three separate surveys. For between-groups investigations, four samples were investigated: WTA and WTP samples for investigations in the context of WeChat as well as WTA and WTP samples for QQ. For within-subjects investigations, individuals completed items on WTA and WTP for WeChat/QQ, the Big Five Inventory, time spent on WeChat/QQ, and the short Bergen Social Media Addiction Scale. Two samples providing data on WeChat and QQ, respectively, were investigated.Across study designs and for both WeChat and QQ we found evidence for high WTA and comparatively low WTP scores, thus, large WTA/WTP disparities. Individual differences in the disparities were negatively associated with Openness across social media platforms. The results reveal a generally low acceptance to pay for social media use, which is important against the background of discussions on monetary payment models. Moreover, a complex interplay between individual characteristics, characteristics of the service, and how and why the service is used seems to underly WTA and the WTA/WTP disparity. Finally, methodological implications of the present results for forthcoming studies assessing valuation (WTA, WTP) in the context of social media are discussed.