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The Role of Ethnicity and Language in Contingent Valuation Analysis

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  • John Loomis
  • Lindsey Ellingson
  • Armando Gonzalez‐Caban
  • Andy Seidl

Abstract

. In order to satisfy legal requirements, many federal agencies must assess the potential effects of their policies on the public. This is often done through surveys, but frequently those surveys are only administered in English. This paper tests whether there are differences in survey response rates, refusals to pay, and willingness to pay (WTP) across different ethnicities and language for forest fire reduction in the State of California. The ethnicities studied were Caucasian, African American, and Hispanic (half in Spanish, half in English). There was a statistical difference in survey response rates across all ethnicities, and no statistical difference among ethnicities for reasons of refusing to pay. The influence of ethnicity and language was tested using a logit model with ethnicity intercepts and bid slope interaction terms. The Hispanic‐Spanish intercept shifter and the Hispanic‐English dollar bid amount interaction terms were statistically significant and positive. There was a significant difference in the logit willingness to pay coefficients between Hispanics surveyed in Spanish with each of the other ethnicities. The annual willingness to pay of Hispanics taking the survey in Spanish was twice that of Caucasians, but no statistical difference in mean and median WTP between these two groups was found, due to large confidence intervals around each estimate. Nonetheless, the WTP of both Hispanics and Caucasians for the forest thinning program is substantial, and statistically different from zero, suggesting there may be broad support for this program in California.

Suggested Citation

  • John Loomis & Lindsey Ellingson & Armando Gonzalez‐Caban & Andy Seidl, 2006. "The Role of Ethnicity and Language in Contingent Valuation Analysis," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 559-586, July.
    • Handle: RePEc:bla:ajecsc:v:65:y:2006:i:3:p:559-586
    DOI: 10.1111/j.1536-7150.2006.00477.x
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    References listed on IDEAS

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    1. W. Michael Hanemann, 1989. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Response Data: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 1057-1061.
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    7. John B. Loomis & Lucas S. Bair & Armando González-Cabán, 2002. "Language-Related Differences in a Contingent Valuation Study: English Versus Spanish," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1091-1102.
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    2. Zander, Kerstin K. & Straton, Anna, 2010. "An economic assessment of the value of tropical river ecosystem services: Heterogeneous preferences among Aboriginal and non-Aboriginal Australians," Ecological Economics, Elsevier, vol. 69(12), pages 2417-2426, October.
    3. Ellingson, Lindsey & Seidl, Andrew F. & Mucklow, C.J., 2007. "Tourists' Value of Ranch Open Space Over Time: A Panel Data Estimation," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 10258, Western Agricultural Economics Association.
    4. Hynes, S. & Ghermandi, A. & Norton, D. & Williams, H., 2017. "Marine Recreational Ecosystem Service Value Meta-Analysis," Working Papers 266404, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    5. Hoyos, David & Mariel, Petr & Fernández-Macho, Javier, 2009. "The influence of cultural identity on the WTP to protect natural resources: Some empirical evidence," Ecological Economics, Elsevier, vol. 68(8-9), pages 2372-2381, June.
    6. Carson, Richard T. & DeShazo, J.R. & Schwabe, Kurt A. & Vincent, Jeffrey R. & Ahmad, Ismariah, 2015. "Incorporating local visitor valuation information into the design of new recreation sites in tropical forests," Ecological Economics, Elsevier, vol. 120(C), pages 338-349.

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