IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-22-00353.html
   My bibliography  Save this article

Time vs. money metrics for contingent valuation surveys: Theory and correlations from data on two marine ecosystems Theory and correlations from data on two marine ecosystems

Author

Listed:
  • Bengt Kriström

    (Swedish University of Agricultural Sciences)

  • Klarizze anne Puzon

    (United Nations University)

Abstract

Money remains the most commonly used metric in valuation surveys involving non-market goods, though recent evidence suggests that alternative metrics can be equally effective. This research contributes to the literature by (i) suggesting a theoretical model to explain the links between metrics, (ii) proposing a bivariate lognormal model to account for any correlation between the answers to the valuation questions, and (iii) providing new data on the value of preserving ”blue goods” in a rural area of a developing country. We study a measure of willingness to pay (WTP) for a non-market good in a time and money metric and show that the ratio between WTP in the time/money metric is equal to the wage in a competitive economy. Our model is tested using a field survey on conservation of ”blue goods” (ecosystems involving the husbandry of water resources) in rural Philippines, and the results provide further support for the use of alternative metrics in valuation studies.

Suggested Citation

  • Bengt Kriström & Klarizze anne Puzon, 2023. "Time vs. money metrics for contingent valuation surveys: Theory and correlations from data on two marine ecosystems Theory and correlations from data on two marine ecosystems," Economics Bulletin, AccessEcon, vol. 43(2), pages 700-718.
    • Handle: RePEc:ebl:ecbull:eb-22-00353
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I2-P58.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brekke, Kjell Arne, 1997. "The numeraire matters in cost-benefit analysis," Journal of Public Economics, Elsevier, vol. 64(1), pages 117-123, April.
    2. Andreas Pondorfer & Katrin Rehdanz, 2018. "Eliciting Preferences for Public Goods in Nonmonetized Communities: Accounting for Preference Uncertainty," Land Economics, University of Wisconsin Press, vol. 94(1), pages 73-86.
    3. Cloé Garnache & Pierre Mérel, 2022. "Environmental Policy in General Equilibrium: New Insights from a Canonical Model," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 9(1), pages 113-140.
    4. Johansson,Per-Olov, 1993. "Cost-Benefit Analysis of Environmental Change," Cambridge Books, Cambridge University Press, number 9780521447928.
    5. Kenneth E. McConnell & Ivar Strand, 1981. "Measuring the Cost of Time in Recreation Demand Analysis: An Application to Sportfishing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 153-156.
    6. Vondolia, Godwin K. & Navrud, Ståle, 2019. "Are non-monetary payment modes more uncertain for stated preference elicitation in developing countries?," Journal of choice modelling, Elsevier, vol. 30(C), pages 73-87.
    7. Frank J. Cesario, 1976. "Value of Time in Recreation Benefit Studies," Land Economics, University of Wisconsin Press, vol. 52(1), pages 32-41.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Medin, Hege & Nyborg, Karine & Bateman, Ian, 2001. "The assumption of equal marginal utility of income: how much does it matter?," Ecological Economics, Elsevier, vol. 36(3), pages 397-411, March.
    2. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    3. Crooker, John R., 2007. "Nonparametric Bounds on Welfare with Measurement Error in Prices: Techniques for Non-Market Resource Valuation," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(2), pages 239-252, October.
    4. von Haefen, Roger H., 2003. "Incorporating observed choice into the construction of welfare measures from random utility models," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 145-165, March.
    5. Larson, Douglas M. & Shaikh, Sabina L., 1999. "Empirical Specification Requirements For Two-Constraint Models Of Recreation Demand," 1999 Annual meeting, August 8-11, Nashville, TN 21629, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Wendong Zhang & Brent Sohngen, 2018. "Do U.S. Anglers Care about Harmful Algal Blooms? A Discrete Choice Experiment of Lake Erie Recreational Anglers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(3), pages 868-888.
    7. Armbrecht, John, 2014. "Use value of cultural experiences: A comparison of contingent valuation and travel cost," Tourism Management, Elsevier, vol. 42(C), pages 141-148.
    8. Casey, James F. & Vukina, Tomislav & Danielson, Leon E., 1995. "The Economic Value of Hiking: Further Considerations of Opportunity Cost of Time in Recreational Demand Models," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 658-668, December.
    9. Raymond Palmquist & Daniel Phaneuf & V. Smith, 2010. "Short Run Constraints and the Increasing Marginal Value of Time in Recreation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(1), pages 19-41, May.
    10. Fezzi, Carlo & Bateman, Ian J. & Ferrini, Silvia, 2014. "Using revealed preferences to estimate the Value of Travel Time to recreation sites," Journal of Environmental Economics and Management, Elsevier, vol. 67(1), pages 58-70.
    11. Lew, Daniel K. & Larson, Douglas M., 2005. "Accounting for stochastic shadow values of time in discrete-choice recreation demand models," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 341-361, September.
    12. Larson, Douglas M. & Shaikh, Sabina L., 1997. "Empirical Specification Considerations for Two-Constraint Models of Recreation Demand," 1997 Annual meeting, July 27-30, Toronto, Canada 271482, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Smith, V. Kerry, 1997. "Time and the Valuation of Environmental Resources," RFF Working Paper Series dp-98-07, Resources for the Future.
    14. Ian J. Bateman & Guy D. Garrod & Julii S. Brainard & Andrew A. Lovett, 1996. "Measurement Issues In The Travel Cost Method: A Geographical Information Systems Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 191-205, January.
    15. Nyborg, Karine, 2014. "Project evaluation with democratic decision-making: What does cost–benefit analysis really measure?," Ecological Economics, Elsevier, vol. 106(C), pages 124-131.
    16. Larson, Douglas M. & Johnston, Richard S., 1993. "Predicting Tourist Demand for Beach Days in the Two-Constraint Recreation Demand Model," 1993 Annual Meeting, August 1-4, Orlando, Florida 271401, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Hoque, Mohammad Mainul & Kling, Catherine L. & Herriges, Joseph A., 2013. "Is Outdoor Recreation Recession-proof? An Empirical Investigation on Iowan’s Lake Recreation Behavior During 2009 Recession," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150640, Agricultural and Applied Economics Association.
    18. Christopher Azevedo & John R. Crooker, 2008. "Alternative Approaches to Incorporating the Opportunity Cost of Time in Recreation Demand Models," Working Papers 0803, University of Central Missouri, Department of Economics & Finance, revised May 2008.
    19. Azevedo, Christopher Dean, 1999. "Linking revealed and stated preference data in recreation demand modeling," ISU General Staff Papers 1999010108000013438, Iowa State University, Department of Economics.
    20. Woodall, Stacie & Wandschneider, Philip R. & Foltz, John C. & Taylor, R. Garth, 2002. "Valuing Idaho Wineries With A Travel Cost Model," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36613, Western Agricultural Economics Association.

    More about this item

    Keywords

    non-market valuation; mangroves; seagrass; marine ecosystems; developing countries;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-22-00353. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.