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Estimating the benefits to Florida households from avoiding another Gulf oil spill using the contingent valuation method: Internal validity tests with probability‐based and opt‐in samples

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  • John C. Whitehead
  • Andrew Ropicki
  • John Loomis
  • Sherry Larkin
  • Tim Haab
  • Sergio Alvarez

Abstract

This paper evaluates contingent valuation method data quality by examining differences in results between probability‐based and opt‐in internet samples using data from a survey estimating passive use losses associated with the BP/Deepwater Horizon oil spill. Both samples pass the internal validity tests of negative price (bid) coefficient and positive sign on income but only the probability‐based sample passed the scope test and shows evidence of use values. We find that the willingness to pay estimates from the opt‐in sample may be over‐estimated compared to the probability‐based sample, though not statistically different. Results support the utility of less expensive opt‐in samples.

Suggested Citation

  • John C. Whitehead & Andrew Ropicki & John Loomis & Sherry Larkin & Tim Haab & Sergio Alvarez, 2023. "Estimating the benefits to Florida households from avoiding another Gulf oil spill using the contingent valuation method: Internal validity tests with probability‐based and opt‐in samples," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 705-720, June.
    • Handle: RePEc:wly:apecpp:v:45:y:2023:i:2:p:705-720
    DOI: 10.1002/aepp.13352
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    1. Now we just wait for the comment from Desvousges, Mathews and Train
      by John Whitehead in Environmental Economics on 2023-03-03 10:10:00

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    2. John C. Whitehead & Alicia Louis Cornicelli & Gregory Howard, 2024. "Total Economic Valuation of Great Lakes Recreational Fisheries: Attribute Non-attendance, Hypothetical Bias and Insensitivity to Scope," Working Papers 24-10, Department of Economics, Appalachian State University.
    3. Plaga, Leonie Sara & Lynch, Muireann & Curtis, John & Bertsch, Valentin, 2024. "How public acceptance affects power system development—A cross-country analysis for wind power," Applied Energy, Elsevier, vol. 359(C).

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    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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