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Is expressed WTP consistent with welfare economics? A response from 73 cognitive interviews

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  • Brigitte Desaigues

Abstract

Contingent valuation is based on the hypothesis that people are able to estimate an improvement of their well-being in terms of income reduction and that the value they give can be assimilated to a price. To test this assumption we ran 73 in-depth interviews with persons suffering from air pollution. Most of the persons express a lump sum. Only 12 % of the persons with a positive WTP are able to construct a value in terms of opportunity costs and increase in quality of life. It is easier to express a lump sum than to try to build a "price" because the cognitive exercise is simpler.

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  • Brigitte Desaigues, 2001. "Is expressed WTP consistent with welfare economics? A response from 73 cognitive interviews," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 137(I), pages 35-47, March.
    • Handle: RePEc:ses:arsjes:2001-i-5
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