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Evaluating the performance of different willingness to pay question formats for valuing environmental restoration in rural China

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  • ZHONGMIN, XU
  • LOOMIS, JOHN
  • ZHIQIANG, ZHANG
  • HAMAMURA, KUINO

Abstract

This paper compares protest rates and willingness to pay (WTP) using a payment card versus single and double bounded voter referendum contingent valuation question formats. Using a chi-square test, the payment card had a significantly higher protest rate (6.7 per cent) than the voter referendum question format (2.2 per cent). The median WTP of the single bounded and double bounded referendum format exceeds the payment card by a factor of nine and seven, respectively. The median WTP from the referendum formats represent about 8 per cent of income, while the payment card results represents about 1 per cent of income. These large differences in WTP between question formats are double what have been found in past studies. We believe this result may be due to excessive yea saying at high bid amounts in the dichotomous choice question formats. This behavior may arise in our case study in rural China because citizens have not had a long history of open elections or voting on tax referenda.

Suggested Citation

  • Zhongmin, Xu & Loomis, John & Zhiqiang, Zhang & Hamamura, Kuino, 2006. "Evaluating the performance of different willingness to pay question formats for valuing environmental restoration in rural China," Environment and Development Economics, Cambridge University Press, vol. 11(5), pages 585-601, October.
    • Handle: RePEc:cup:endeec:v:11:y:2006:i:05:p:585-601_00
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    Cited by:

    1. Tuan, Tran Huu & Navrud, Stale, 2009. "Applying the dissonance-minimising format to value cultural heritage in developing countries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 1-17.
    2. Syed A. Shah & Dana L. K. Hoag & John Loomis, 2017. "Is willingness to pay for freshwater quality improvement in Pakistan affected by payment vehicle? Donations, mandatory government payments, or donations to NGO’s," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(4), pages 807-818, October.
    3. Marija Opačak & Erda Wang, 2019. "Estimating Willingness to Pay for a Future Recreational Park Atop the Current Jakuševec Landfill in Zagreb, Croatia," Sustainability, MDPI, vol. 11(21), pages 1-16, October.
    4. Tran Huu Tuan & Henrik Lindhjem, 2008. "Meta-analysis of nature conservation values in Asia & Oceania: Data heterogeneity and benefit transfer issues," EEPSEA Research Report rr2008072, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jul 2008.
    5. Ahlheim, Michael & Börger, Tobias & Frör, Oliver, 2012. "The ecological price of getting rich in a green desert: A contingent valuation study in rural Southwest China," FZID Discussion Papers 55-2012, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    6. Drichoutis, Andreas C. & Lusk, Jayson L. & Pappa, Valentina, 2016. "Elicitation formats and the WTA/WTP gap: A study of climate neutral foods," Food Policy, Elsevier, vol. 61(C), pages 141-155.
    7. Ramachander, Sangamitra, 2016. "The price sensitivity of mobile use among low income households in six countries of Asia," Telecommunications Policy, Elsevier, vol. 40(7), pages 673-691.
    8. Wang, Hua & Shi, Yuyan & Kim, Yoonhee & Kamata, Takuya, 2013. "Valuing water quality improvement in China: A case study of Lake Puzhehei in Yunnan Province," Ecological Economics, Elsevier, vol. 94(C), pages 56-65.
    9. Kwideok Han & Jeffrey Vitale & Yong-Geon Lee & Inbae Ji, 2022. "Measuring the Economic Value of the Negative Externality of Livestock Malodor in South Korea," IJERPH, MDPI, vol. 19(15), pages 1-13, August.
    10. Craig A. Bond & Dawn Thilmany & Jennifer Keeling Bond, 2008. "Understanding consumer interest in product and process-based attributes for fresh produce," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 231-252.

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