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Valuing housework time from willingness to spend time and money for environmental quality improvements

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  • Young-Sook Eom
  • Douglas Larson

Abstract

We develop a new approach to assessing the value of home production time based on willingness to spend time and money to obtain environmental improvements. When peoples’ choice is constrained by time as well as money, measures of willingness to pay can be defined with respect to either numeraire. In a model that explicitly allows for multiple shadow values of time, we show that the willingness to pay time and money measures are linked through the value of saving time. With survey information on peoples’ willingness to spend additional time on housework activities, as well as pay money, to obtain environmental quality improvements, joint estimation within a utility-consistent structure produces estimates of both willingness to pay and the value of saving housework time. From the value of saving housework time, the marginal value of housework time can be readily identified. When applied to Korean households’ valuation of water quality improvements in the Man Kyoung River, we find that the value of housework time is 70–80% of the market wage. Copyright Springer Science+Business Media, LLC 2006

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  • Young-Sook Eom & Douglas Larson, 2006. "Valuing housework time from willingness to spend time and money for environmental quality improvements," Review of Economics of the Household, Springer, vol. 4(3), pages 205-227, September.
    • Handle: RePEc:kap:reveho:v:4:y:2006:i:3:p:205-227
    DOI: 10.1007/s11150-006-0008-1
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    2. Ahlheim, Michael & Frör, Oliver & Nguyen Minh Duc & Rehl, Antonia & Siepmann, Ute & Pham Van Dinh, 2017. "Labour as a utility measure reconsidered," Hohenheim Discussion Papers in Business, Economics and Social Sciences 03-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    3. Diriba Abdeta, 2022. "Households' willingness to pay for forest conservation in Ethiopia: A review," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 68(11), pages 437-451.
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    5. Shigeru Matsumoto, 2014. "Spouses’ time allocation to pro-environmental activities: who is saving the environment at home?," Review of Economics of the Household, Springer, vol. 12(1), pages 159-176, March.
    6. 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.
    7. Meginnis, Keila & Hanley, Nick & Mujumbusi, Lazaaro & Lamberton, Poppy H.L., 2020. "Non-monetary numeraires: Varying the payment vehicle in a choice experiment for health interventions in Uganda," Ecological Economics, Elsevier, vol. 170(C).
    8. J. M. Gibson & D. Rigby & D. A. Polya & N. Russell, 2016. "Discrete Choice Experiments in Developing Countries: Willingness to Pay Versus Willingness to Work," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(4), pages 697-721, December.
    9. Kassahun, Habtamu Tilahun & Jacobsen, Jette Bredahl & Nicholson, Charles F., 2020. "Revisiting money and labor for valuing environmental goods and services in developing countries," Ecological Economics, Elsevier, vol. 177(C).
    10. de Rezende, Carlos Eduardo & Kahn, James R. & Passareli, Layra & Vásquez, William F., 2015. "An economic valuation of mangrove restoration in Brazil," Ecological Economics, Elsevier, vol. 120(C), pages 296-302.
    11. Godwin Kofi Vondolia & Håkan Eggert & Ståle Navrud & Jesper Stage, 2014. "What do respondents bring to contingent valuation? A comparison of monetary and labour payment vehicles," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(3), pages 253-267, November.
    12. Habtamu Tilahun Kassahun & Bo Jellesmark Thorsen & Joffre Swait & Jette Bredahl Jacobsen, 2020. "Social Cooperation in the Context of Integrated Private and Common Land Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 105-136, January.
    13. Diafas, Iason & Barkmann, Jan & Mburu, John, 2017. "Measurement of Bequest Value Using a Non-monetary Payment in a Choice Experiment—The Case of Improving Forest Ecosystem Services for the Benefit of Local Communities in Rural Kenya," Ecological Economics, Elsevier, vol. 140(C), pages 157-165.
    14. Rai, Rajesh Kumar & Shyamsundar, Priya & Nepal, Mani & Bhatta, Laxmi Dutt, 2015. "Differences in demand for watershed services: Understanding preferences through a choice experiment in the Koshi Basin of Nepal," Ecological Economics, Elsevier, vol. 119(C), pages 274-283.
    15. Godwin Kofi Vondolia & Håkan Eggert & Ståle Navrud & Jesper Stage, 2014. "What do respondents bring to contingent valuation? A comparison of monetary and labour payment vehicles," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(3), pages 253-267, November.
    16. Kocsis, Tamás & Marjainé, Szerényi Zsuzsanna, 2018. "Gazdag szegények. Időráfordítási hajlandóság a környezeti javak értékelésében [The wealthy poor - "willingness to spend time" in evaluating environmental benefits]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1154-1171.
    17. Hisako Nomura & Nguyen Bich Hong & Mitsuyasu Yabe, 2018. "Effective Use and Management of Kunisaki Peninsula Usa GIAHS Long Trail—A Sustainable Tourism Model leading to Regional Development," Sustainability, MDPI, vol. 10(2), pages 1-14, February.
    18. Joseph Arbiol & Maridel Borja & Mitsuyasu Yabe & Hisako Nomura & Nina Gloriani & Shin-ichi Yoshida, 2013. "Valuing Human Leptospirosis Prevention Using the Opportunity Cost of Labor," IJERPH, MDPI, vol. 10(5), pages 1-16, May.
    19. 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.
    20. Tilahun, Mesfin & Vranken, Liesbet & Muys, Bart & Deckers, Jozef A. & Gebregziabher, Kidanemariam & Gebrehiwot, Kindeya & Bauer, Hans & Mathijs, Erik, 2012. "Rural Households’ Demand for Frankincense Forest Conservation in Tigray: A Continent Valuation Analysis," Working Papers 146520, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    21. Ahlheim, Michael & Frör, Oliver & Heinke, Antonia & Duc, Nguyen Minh & Dinh, Pham Van, 2010. "Labour as a utility measure in contingent valuation studies: how good is it really?," FZID Discussion Papers 13-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).

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    More about this item

    Keywords

    Household production; Value of time; Housework time; Nonmarket valuation; Contingent valuation; D1; H4; Q26;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • H4 - Public Economics - - Publicly Provided Goods
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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