IDEAS home Printed from https://ideas.repec.org/a/eee/jeeman/v64y2012i2p169-182.html
   My bibliography  Save this article

Disentangling preferences and expectations in stated preference analysis with respondent uncertainty: The case of invasive species prevention

Author

Listed:
  • Provencher, Bill
  • Lewis, David J.
  • Anderson, Kathryn

Abstract

Contingent valuation typically involves presenting the respondent with a choice to pay for a program intended to improve future outcomes, such as a program to place parcels into conservation easement, or a program to manage an invasive species. Deducing from these data the value of the good (or bad) at the core of the program – the welfare gain generated by a parcel of conserved land, for instance, or the loss incurred by a species invasion – often is not possible because respondent preferences are conflated with their expectations about future environmental outcomes in the absence of the program. This paper formally demonstrates this conundrum in the context of a standard contingent valuation survey, and examines the use of additional survey data to resolve it. The application is to the prevention of lake invasions by Eurasian Watermilfoil (Myriophyllum spicatum), an invasive aquatic plant that is present in many lakes in the northern U.S. and Canada and a possible threat to many more. Respondents are shoreline property owners on lakes without Eurasian Watermilfoil. The estimated per-property welfare loss of a lake invasion is $30,550 for one model and $23,614 for another, both of which are in reasonable agreement with estimates obtained from a recent hedonic analysis of Eurasian Watermilfoil invasions in the study area [16], and from a companion contingent valuation survey of shoreline property owners on already-invaded lakes.

Suggested Citation

  • Provencher, Bill & Lewis, David J. & Anderson, Kathryn, 2012. "Disentangling preferences and expectations in stated preference analysis with respondent uncertainty: The case of invasive species prevention," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 169-182.
    • Handle: RePEc:eee:jeeman:v:64:y:2012:i:2:p:169-182
    DOI: 10.1016/j.jeem.2012.04.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S009506961200037X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jeem.2012.04.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eric J. Horsch & David J. Lewis, 2009. "The Effects of Aquatic Invasive Species on Property Values: Evidence from a Quasi-Experiment," Land Economics, University of Wisconsin Press, vol. 85(3), pages 391-409.
    2. Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January.
    3. Kent F. Kovacs & Douglas M. Larson, 2008. "Identifying Individual Discount Rates and Valuing Public Open Space with Stated-Preference Models," Land Economics, University of Wisconsin Press, vol. 84(2), pages 209-224.
    4. Alberini, Anna & Boyle, Kevin & Welsh, Michael, 2003. "Analysis of contingent valuation data with multiple bids and response options allowing respondents to express uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 40-62, January.
    5. Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, September.
    6. Berrens, Robert P. & Jenkins-Smith, Hank & Bohara, Alok K. & Silva, Carol L., 2002. "Further Investigation of Voluntary Contribution Contingent Valuation: Fair Share, Time of Contribution, and Respondent Uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 144-168, July.
    7. Blomquist, Glenn C. & Whitehead, John C., 1998. "Resource quality information and validity of willingness to pay in contingent valuation," Resource and Energy Economics, Elsevier, vol. 20(2), pages 179-196, June.
    8. Rebecca Moore & Richard C. Bishop & Bill Provencher & Patricia A. Champ, 2010. "Accounting for Respondent Uncertainty to Improve Willingness‐to‐Pay Estimates," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(3), pages 381-401, September.
    9. Ready Richard C. & Whitehead John C. & Blomquist Glenn C., 1995. "Contingent Valuation When Respondents Are Ambivalent," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 181-196, September.
    10. Welsh, Michael P. & Poe, Gregory L., 1998. "Elicitation Effects in Contingent Valuation: Comparisons to a Multiple Bounded Discrete Choice Approach," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 170-185, September.
    11. Daniel Burghart & Trudy Cameron & Geoffrey Gerdes, 2007. "Valuing publicly sponsored research projects: Risks, scenario adjustments, and inattention," Journal of Risk and Uncertainty, Springer, vol. 35(1), pages 77-105, August.
    12. Li Chuan-Zhong & Mattsson Leif, 1995. "Discrete Choice under Preference Uncertainty: An Improved Structural Model for Contingent Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 256-269, March.
    13. Karen Blumenschein & Magnus Johannesson & Glenn C. Blomquist & Bengt Liljas & Richard M. O’Conor, 1998. "Experimental Results on Expressed Certainty and Hypothetical Bias in Contingent Valuation," Southern Economic Journal, John Wiley & Sons, vol. 65(1), pages 169-177, July.
    14. Glenn Blomquist & Karen Blumenschein & Magnus Johannesson, 2009. "Eliciting Willingness to Pay without Bias using Follow-up Certainty Statements: Comparisons between Probably/Definitely and a 10-point Certainty Scale," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(4), pages 473-502, August.
    15. Jennifer Tkac, 1998. "The Effects of Information on Willingness-to-Pay Values of Endangered Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1214-1220.
    16. Champ, Patricia A. & Bishop, Richard C. & Brown, Thomas C. & McCollum, Daniel W., 1997. "Using Donation Mechanisms to Value Nonuse Benefits from Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 151-162, June.
    17. Delavande, Adeline & Giné, Xavier & McKenzie, David, 2011. "Measuring subjective expectations in developing countries: A critical review and new evidence," Journal of Development Economics, Elsevier, vol. 94(2), pages 151-163, March.
    18. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    19. Basil E. Stumborg & Kenneth A. Baerenklau & Richard C. Bishop, 2001. "Nonpoint Source Pollution and Present Values: A Contingent Valuation Study of Lake Mendota," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 23(1), pages 120-132.
    20. Samnaliev, Mihail & Stevens, Thomas H. & More, Thomas, 2006. "A comparison of alternative certainty calibration techniques in contingent valuation," Ecological Economics, Elsevier, vol. 57(3), pages 507-519, May.
    21. Wang, Hua & Whittington, Dale, 2005. "Measuring individuals' valuation distributions using a stochastic payment card approach," Ecological Economics, Elsevier, vol. 55(2), pages 143-154, November.
    22. Hoehn, John P. & Randall, Alan, 2002. "The effect of resource quality information on resource injury perceptions and contingent values," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 13-31, February.
    23. Michael D. Hurd, 2009. "Subjective Probabilities in Household Surveys," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 543-564, May.
    24. Mary F. Evans & Nicholas E. Flores & Kevin J. Boyle, 2003. "Multiple-Bounded Uncertainty Choice Data as Probabilistic Intentions," Land Economics, University of Wisconsin Press, vol. 79(4), pages 549-560.
    25. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Johnston, Robert J. & Schultz, Eric T. & Segerson, Kathleen & Besedin, Elena Y. & Ramachandran, Mahesh, 2013. "Stated Preferences for Intermediate versus Final Ecosystem Services: Disentangling Willingness to Pay for Omitted Outcomes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), pages 1-21, April.
    2. Lewis, David J. & Provencher, Bill & Beardmore, Ben, 2015. "Using an intervention framework to value salient ecosystem services in a stated preference experiment," Ecological Economics, Elsevier, vol. 114(C), pages 141-151.
    3. Riccardo Scarpa & Claudia Bazzani & Diego Begalli & Roberta Capitello, 2021. "Resolvable and Near‐epistemic Uncertainty in Stated Preference for Olive Oil: An Empirical Exploration," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 335-369, June.
    4. Julian D Olden & Mariana Tamayo, 2014. "Incentivizing the Public to Support Invasive Species Management: Eurasian Milfoil Reduces Lakefront Property Values," PLOS ONE, Public Library of Science, vol. 9(10), pages 1-6, October.
    5. Katherine Y. Zipp & Yangqingxiang Wu & Kaiyi Wu & Ludmil T. Zikatanov, 2019. "Optimal spatial-dynamic management to minimize the damages caused by aquatic invasive species," Letters in Spatial and Resource Sciences, Springer, vol. 12(3), pages 199-213, December.
    6. Kim, Hyeon-Woong & Sung, Jae-hoon, 2024. "An Analysis of Preference for the Rural Residential environment and Landscape Improvements," 2024 Annual Meeting, July 28-30, New Orleans, LA 343815, Agricultural and Applied Economics Association.
    7. Wang, Hua & He, Jie & Huang, Desheng, 2020. "Public distrust and valuation biases: Identification and calibration with contingent valuation studies of two air quality improvement programs in China," China Economic Review, Elsevier, vol. 61(C).

    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. Nikita Lyssenko & Roberto Mart󹑺-Espiñeira, 2012. "Respondent uncertainty in contingent valuation: the case of whale conservation in Newfoundland and Labrador," Applied Economics, Taylor & Francis Journals, vol. 44(15), pages 1911-1930, May.
    2. Rebecca Moore & Richard C. Bishop & Bill Provencher & Patricia A. Champ, 2010. "Accounting for Respondent Uncertainty to Improve Willingness‐to‐Pay Estimates," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(3), pages 381-401, September.
    3. Moore, Rebecca & Bishop, Richard C. & Provencher, Bill & Champ, Patricia A., 2009. "Accounting for Respondent Uncertainty to Improve Willingness-to-Pay Estimates," Staff Papers 92233, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    4. Ana Bedate & Luis Herrero & José Sanz, 2009. "Economic valuation of a contemporary art museum: correction of hypothetical bias using a certainty question," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(3), pages 185-199, August.
    5. Voltaire, Louinord & Pirrone, Claudio & Bailly, Denis, 2013. "Dealing with preference uncertainty in contingent willingness to pay for a nature protection program: A new approach," Ecological Economics, Elsevier, vol. 88(C), pages 76-85.
    6. Christian A. Vossler & Robert G. Ethier & Gregory L. Poe & Michael P. Welsh, 2003. "Payment Certainty in Discrete Choice Contingent Valuation Responses: Results from a Field Validity Test," Southern Economic Journal, Southern Economic Association, vol. 69(4), pages 886-902, April.
    7. Christian A. Vossler & Robert G. Ethier & Gregory L. Poe & Michael P. Welsh, 2003. "Payment Certainty in Discrete Choice Contingent Valuation Responses: Results from a Field Validity Test," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 886-902, April.
    8. Christian A. Vossler & Robert G. Ethier & Gregory L. Poe & Michael P. Welsh, 2003. "Payment Certainty in Discrete Choice Contingent Valuation Responses: Results from a Field Validity Test," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 886-902, April.
    9. Sund, Björn, 2009. "Certainty calibration in contingent valuation - exploring the within-difference between dichotomous choice and open-ended answers as a certainty measure," Working Papers 2009:1, Örebro University, School of Business.
    10. Vossler, Christian A., 2003. "Multiple bounded discrete choice contingent valuation: parametric and nonparametric welfare estimation and a comparison to the payment card," MPRA Paper 38867, University Library of Munich, Germany.
    11. Broberg, Thomas & Brännlund, Runar, 2008. "An alternative interpretation of multiple bounded WTP data--Certainty dependent payment card intervals," Resource and Energy Economics, Elsevier, vol. 30(4), pages 555-567, December.
    12. Richard C. Ready & Patricia A. Champ & Jennifer L. Lawton, 2010. "Using Respondent Uncertainty to Mitigate Hypothetical Bias in a Stated Choice Experiment," Land Economics, University of Wisconsin Press, vol. 86(2), pages 363-381.
    13. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    14. Thunström, Linda & Nordström, Jonas & Shogren, Jason F., 2015. "Certainty and overconfidence in future preferences for food," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 101-113.
    15. Mary F. Evans & Nicholas E. Flores & Kevin J. Boyle, 2003. "Multiple-Bounded Uncertainty Choice Data as Probabilistic Intentions," Land Economics, University of Wisconsin Press, vol. 79(4), pages 549-560.
    16. 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.
    17. Karen Blumenschein & GlennC. Blomquist & Magnus Johannesson & Nancy Horn & Patricia Freeman, 2008. "Eliciting Willingness to Pay Without Bias: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 114-137, January.
    18. Akter, Sonia & Brouwer, Roy & Brander, Luke & van Beukering, Pieter, 2009. "Respondent uncertainty in a contingent market for carbon offsets," Ecological Economics, Elsevier, vol. 68(6), pages 1858-1863, April.
    19. Sun, Lili & van Kooten, G. Cornelis, 2005. "Fuzzy Logic and Preference Uncertainty in Non-market Valuation," Working Papers 37021, University of Victoria, Resource Economics and Policy.
    20. Akter, Sonia & Bennett, Jeffrey W., 2009. "A cognitive psychological approach of analyzing preference uncertainty in contingent valuation," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47938, Australian Agricultural and Resource Economics Society.

    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:eee:jeeman:v:64:y:2012:i:2:p:169-182. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622870 .

    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.