IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v38y2014icp243-260.html
   My bibliography  Save this article

Temporal stability of preferences and willingness to pay for natural areas in choice experiments: A test–retest

Author

Listed:
  • Schaafsma, Marije
  • Brouwer, Roy
  • Liekens, Inge
  • De Nocker, Leo

Abstract

The main objective of this paper is to test the temporal stability of stated preferences and willingness to pay (WTP) values from a Choice Experiment (CE) in a test–retest. The same group of participants was asked the same choice tasks in an internet-based CE, conducted twice with a time interval of one year without interviewer interference. We examine choice consistency at individual choice task level and transferability of the underlying indirect utility function and associated WTP values. The results show that choices are consistent in 57 percent of the choice occasions. Comparison of the choice models over time shows that the estimated preference and scale parameters are significantly different, suggesting that choice behaviour changed between the two surveys. Differences between marginal WTP estimates for individual choice attributes are statistically significant only at the 10 percent level. However, we show that this can result in significantly different WTP values for policy scenarios. The instability of estimated mean WTP values for different policy scenarios asks for caution when including WTP values in cost-benefit analysis.

Suggested Citation

  • Schaafsma, Marije & Brouwer, Roy & Liekens, Inge & De Nocker, Leo, 2014. "Temporal stability of preferences and willingness to pay for natural areas in choice experiments: A test–retest," Resource and Energy Economics, Elsevier, vol. 38(C), pages 243-260.
    • Handle: RePEc:eee:resene:v:38:y:2014:i:c:p:243-260
    DOI: 10.1016/j.reseneeco.2014.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928765514000657
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.reseneeco.2014.09.001?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. Christian A. Vossler & Maurice Doyon & Daniel Rondeau, 2012. "Truth in Consequentiality: Theory and Field Evidence on Discrete Choice Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(4), pages 145-171, November.
    2. K. McConnell* & I. Strand & Sebastián Valdés, 1998. "Testing Temporal Reliability and Carry-over Effect: The Role of Correlated Responses in Test-retest Reliability Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(3), pages 357-374, October.
    3. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December.
    4. Yong Jiang & Stephen Swallow & Michael Mcgonagle, 2005. "Context-Sensitive Benefit Transfer Using Stated Choice Models: Specification and Convergent Validity for Policy Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(4), pages 477-499, August.
    5. Mandy Ryan & Verity Watson, 2009. "Comparing welfare estimates from payment card contingent valuation and discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 389-401, April.
    6. Hole, Arne Risa, 2008. "Modelling heterogeneity in patients' preferences for the attributes of a general practitioner appointment," Journal of Health Economics, Elsevier, vol. 27(4), pages 1078-1094, July.
    7. Ulf Liebe & Jürgen Meyerhoff & Volkmar Hartje, 2012. "Test–Retest Reliability of Choice Experiments in Environmental Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(3), pages 389-407, November.
    8. Tiziana Luisetti & Ian J. Bateman & R. Kerry Turner, 2011. "Testing the Fundamental Assumption of Choice Experiments: Are Values Absolute or Relative?," Land Economics, University of Wisconsin Press, vol. 87(2), pages 284-296.
    9. Mark Morrison & Jeff Bennett & Russell Blamey & Jordan Louviere, 2002. "Choice Modeling and Tests of Benefit Transfer," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 161-170.
    10. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
    11. Brouwer, Roy, 2006. "Do stated preference methods stand the test of time? A test of the stability of contingent values and models for health risks when facing an extreme event," Ecological Economics, Elsevier, vol. 60(2), pages 399-406, December.
    12. Sergio Colombo & Javier Calatrava-Requena & Nick Hanley, 2007. "Testing Choice Experiment for Benefit Transfer with Preference Heterogeneity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 135-151.
    13. Vivien Foster & Susana Mourato, 2003. "Elicitation Format and Sensitivity to Scope," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 141-160, February.
    14. Mark Morrison & Jeff Bennett, 2004. "Valuing New South Wales rivers for use in benefit transfer," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(4), pages 591-611, December.
    15. Gregory L. Poe & Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 353-365.
    16. Stirling Bryan & Lisa Gold & Rob Sheldon & Martin Buxton, 2000. "Preference measurement using conjoint methods: an empirical investigation of reliability," Health Economics, John Wiley & Sons, Ltd., vol. 9(5), pages 385-395, July.
    17. Johnston, Robert J. & Duke, Joshua M., 2010. "Socioeconomic adjustments and choice experiment benefit function transfer: Evaluating the common wisdom," Resource and Energy Economics, Elsevier, vol. 32(3), pages 421-438, August.
    18. Danny Campbell & W George Hutchinson & Riccardo Scarpa, 2009. "Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements," Environment and Planning A, , vol. 41(1), pages 97-111, January.
    19. John C. Whitehead & Thomas J. Hoban, 1999. "Testing for Temporal Reliability in Contingent Valuation with Time for Changes in Factors Affecting Demand," Land Economics, University of Wisconsin Press, vol. 75(3), pages 453-465.
    20. Robert J. Johnston & Randall S. Rosenberger, 2010. "Methods, Trends And Controversies In Contemporary Benefit Transfer," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 479-510, July.
    21. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, September.
    22. Brouwer, Roy & Bateman, Ian J., 2005. "Benefits transfer of willingness to pay estimates and functions for health-risk reductions: a cross-country study," Journal of Health Economics, Elsevier, vol. 24(3), pages 591-611, May.
    23. Thomas P. Holmes & Kevin J. Boyle, 2005. "Dynamic Learning and Context-Dependence in Sequential, Attribute-Based, Stated-Preference Valuation Questions," Land Economics, University of Wisconsin Press, vol. 81(1).
    24. I. Bateman & R. Brouwer & S. Ferrini & M. Schaafsma & D. Barton & A. Dubgaard & B. Hasler & S. Hime & I. Liekens & S. Navrud & L. De Nocker & R. Ščeponavičiūtė & D. Semėnienė, 2011. "Making Benefit Transfers Work: Deriving and Testing Principles for Value Transfers for Similar and Dissimilar Sites Using a Case Study of the Non-Market Benefits of Water Quality Improvements Across E," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(3), pages 365-387, November.
    25. Sergio Colombo & Nick Hanley, 2008. "How Can We Reduce the Errors from Benefits Transfer? An Investigation Using the Choice Experiment Method," Land Economics, University of Wisconsin Press, vol. 84(1), pages 128-147.
    26. Roy Brouwer & Thijs Dekker & John Rolfe & Jill Windle, 2010. "Choice Certainty and Consistency in Repeated Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(1), pages 93-109, May.
    27. Robert Johnston, 2007. "Choice experiments, site similarity and benefits transfer," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(3), pages 331-351, November.
    28. Day, Brett & Bateman, Ian J. & Carson, Richard T. & Dupont, Diane & Louviere, Jordan J. & Morimoto, Sanae & Scarpa, Riccardo & Wang, Paul, 2012. "Ordering effects and choice set awareness in repeat-response stated preference studies," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 73-91.
    29. Jin, Jianjun & Wang, Zhishi & Ran, Shenghong, 2006. "Comparison of contingent valuation and choice experiment in solid waste management programs in Macao," Ecological Economics, Elsevier, vol. 57(3), pages 430-441, May.
    30. Ryan, Mandy & Netten, Ann & Skatun, Diane & Smith, Paul, 2006. "Using discrete choice experiments to estimate a preference-based measure of outcome--An application to social care for older people," Journal of Health Economics, Elsevier, vol. 25(5), pages 927-944, September.
    31. 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.
    32. Schaafsma, Marije & Brouwer, Roy & Rose, John, 2012. "Directional heterogeneity in WTP models for environmental valuation," Ecological Economics, Elsevier, vol. 79(C), pages 21-31.
    33. Riccardo Scarpa, 2000. "Contingent Valuation Versus Choice Experiments: Estimating the Benefits of Environmentally Sensitive Areas in Scotland: Comment," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 122-128, January.
    34. Brouwer, Roy, 2000. "Environmental value transfer: state of the art and future prospects," Ecological Economics, Elsevier, vol. 32(1), pages 137-152, January.
    35. Robert J. Johnston & James J. Opaluch & Thomas A. Grigalunas & Marisa J. Mazzotta, 2001. "Estimating Amenity Benefits of Coastal Farmland," Growth and Change, Wiley Blackwell, vol. 32(3), pages 305-325.
    36. Roy Brouwer, 2008. "The potential role of stated preference methods in the Water Framework Directive to assess disproportionate costs," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(5), pages 597-614.
    37. Gebeyehu Fetene & Søren Olsen & Ole Bonnichsen, 2014. "Disentangling the Pure Time Effect From Site and Preference Heterogeneity Effects in Benefit Transfer: An Empirical Investigation of Transferability," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 583-611, December.
    38. Brouwer, Roy & van Beukering, Pieter & Sultanian, Elena, 2008. "The impact of the bird flu on public willingness to pay for the protection of migratory birds," Ecological Economics, Elsevier, vol. 64(3), pages 575-585, January.
    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. 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.
    2. Robert J. Johnston & Kevin J. Boyle & Maria L. Loureiro & Ståle Navrud & John Rolfe, 2021. "Guidance to Enhance the Validity and Credibility of Environmental Benefit Transfers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 575-624, July.
    3. Baker, Rick & Ruting, Brad, 2014. "Environmental Policy Analysis: A Guide to Non‑Market Valuation," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165810, Australian Agricultural and Resource Economics Society.
    4. J. Price & D. Dupont & W. Adamowicz, 2017. "As Time Goes By: Examination of Temporal Stability Across Stated Preference Question Formats," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 643-662, November.
    5. Roy Brouwer & Ivana Logar & Oleg Sheremet, 2017. "Choice Consistency and Preference Stability in Test-Retests of Discrete Choice Experiment and Open-Ended Willingness to Pay Elicitation Formats," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 729-751, November.
    6. Johnston, Robert J. & Duke, Joshua M., 2010. "Socioeconomic adjustments and choice experiment benefit function transfer: Evaluating the common wisdom," Resource and Energy Economics, Elsevier, vol. 32(3), pages 421-438, August.
    7. Kountouris, Yiannis & Nakic, Zoran & Sauer, Johannes, 2015. "Political instability and non-market valuation: Evidence from Croatia," Resource and Energy Economics, Elsevier, vol. 41(C), pages 19-39.
    8. Matthews, Yvonne & Scarpa, Riccardo & Marsh, Dan, 2017. "Stability of Willingness-to-Pay for Coastal Management: A Choice Experiment Across Three Time Periods," Ecological Economics, Elsevier, vol. 138(C), pages 64-73.
    9. Lew, Daniel K. & Wallmo, Kristy, 2017. "Temporal stability of stated preferences for endangered species protection from choice experiments," Ecological Economics, Elsevier, vol. 131(C), pages 87-97.
    10. Robert J. Johnston & Ewa Zawojska, 2020. "Relative Versus Absolute Commodity Measurements in Benefit Transfer: Consequences for Validity and Reliability," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1245-1270, August.
    11. Gebeyehu Fetene & Søren Olsen & Ole Bonnichsen, 2014. "Disentangling the Pure Time Effect From Site and Preference Heterogeneity Effects in Benefit Transfer: An Empirical Investigation of Transferability," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 583-611, December.
    12. Rolfe, John & Dyack, Brenda, 2019. "Testing Temporal Stability of Recreation Values," Ecological Economics, Elsevier, vol. 159(C), pages 75-83.
    13. Klaus Glenk & Julia Martin-Ortega & Manuel Pulido-Velazquez & Jacqueline Potts, 2015. "Inferring Attribute Non-attendance from Discrete Choice Experiments: Implications for Benefit Transfer," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(4), pages 497-520, April.
    14. Thijs Dekker & Paul Koster & Roy Brouwer, 2014. "Changing with the Tide: Semiparametric Estimation of Preference Dynamics," Land Economics, University of Wisconsin Press, vol. 90(4), pages 717-745.
    15. Czajkowski, Mikołaj & Ahtiainen, Heini & Artell, Janne & Meyerhoff, Jürgen, 2017. "Choosing a Functional Form for an International Benefit Transfer: Evidence from a Nine-country Valuation Experiment," Ecological Economics, Elsevier, vol. 134(C), pages 104-113.
    16. Robert J. Johnston & Ewa Zawojska, 2018. "Benefit Transfer and Commodity Measurement Scales: Consequences for Validity and Reliability," Working Papers 2018-26, Faculty of Economic Sciences, University of Warsaw.
    17. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    18. Holland, Benedict M. & Johnston, Robert J., 2014. "Spatially-Referenced Choice Experiments: Tests of Individualized Geocoding in Stated Preference Questionnaires," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170191, Agricultural and Applied Economics Association.
    19. Robert Johnston & Mahesh Ramachandran, 2014. "Modeling Spatial Patchiness and Hot Spots in Stated Preference Willingness to Pay," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(3), pages 363-387, November.
    20. Mark J. Koetse & Erik T. Verhoef & Luke M. Brander, 2017. "A generic marginal value function for natural areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 159-179, January.

    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:resene:v:38:y:2014:i:c:p:243-260. 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/505569 .

    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.