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Evaluating the Effect of Alternative Risk Communication Devices on Willingness to Pay: Results from a Dichotomous Choice Contingent Valuation Experiment

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  • John B. Loomis
  • Pierre H. duVair

Abstract

Two versions of a contingent valuation questionnaire that differ only in the device used to communicate risks from hazardous waste were sent to California households. Both risk communication devices provide WTP functions which vary in a statistically significant fashion with the absolute risk reduction. However, these empirical results also demonstrate that different risk communication devices produce statistically different logit equations and hence estimates of willingness to pay (WTP) for reductions in exposure to hazardous waste. The pros and cons of using each risk communication device in CVM surveys is also discussed.

Suggested Citation

  • John B. Loomis & Pierre H. duVair, 1993. "Evaluating the Effect of Alternative Risk Communication Devices on Willingness to Pay: Results from a Dichotomous Choice Contingent Valuation Experiment," Land Economics, University of Wisconsin Press, vol. 69(3), pages 287-298.
    • Handle: RePEc:uwp:landec:v:69:y:1993:i:3:p:287-298
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