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Public support for hosting the Olympic Summer Games in Germany: The CVM approach

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  • Pamela Wicker
  • John C. Whitehead
  • Daniel S. Mason
  • Bruce K. Johnson

Abstract

Cities throughout the world continue to weigh the merits of hosting major sport events, including the Olympic Games. These events are considered desirable due to a range of benefits, including economic and/or tourism development. In addition, previous research has shown that hosting the Olympics may confer intangible benefits for cities and their residents. This paper presents the results of a contingent valuation method estimate of the monetary value of intangible benefits to Germans of hosting the Olympic Summer Games. In a nationwide online survey 6,977 respondents were asked if they would support a referendum to host the Games. The survey employed a payment card format containing monthly tax amounts to elicit willingness-to-pay to finance the Games over a five-year-period. In the weighted sample, 72 percent expressed a positive willingness-to-pay. Among those with a positive willingness-to-pay, average willingness-to-pay was €47. The results from grouped data hurdle models showed that various intangible benefits (e.g. pride and happiness in sporting success; increased German prestige) and policy consequentiality had a significant positive effect on willingness-to-pay. The findings have implications for policy makers since they show what population groups are more supportive of hosting the Games. Key Words: Contingent Valuation Method; Willingness-to-pay; Olympic Games; Public goods; Sport event

Suggested Citation

  • Pamela Wicker & John C. Whitehead & Daniel S. Mason & Bruce K. Johnson, 2015. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Working Papers 15-06, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:15-06
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    1. I'm thinking about changing the name of this blog to "Environmental and Urban Economics"
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    2. John C. Whitehead & Pamela Wicker, 2017. "Using Willingness to Travel to Estimate the Monetary Value of Intangible Benefits Derived from Active Sport Event Tourism," Working Papers 17-03, Department of Economics, Appalachian State University.
    3. Pasquale Lucio Scandizzo & Maria Rita Pierleoni, 2018. "Assessing The Olympic Games: The Economic Impact And Beyond," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 649-682, July.
    4. Yangjie Wang & Cuicui Sun & Jinxian Wang & Xiaoyan Mao, 2024. "Do People Feel Healthier After Holding Sports Mega-Events? Evidence from the 2010 Guangzhou Asian Games," Journal of Sports Economics, , vol. 25(5), pages 583-609, June.
    5. Bakkenbüll, Linn-Brit & Dilger, Alexander, 2016. "Willingness to pay and accept for hosting Olympic Games in Germany," Discussion Papers of the Institute for Organisational Economics 11/2016, University of Münster, Institute for Organisational Economics.
    6. Brad R. Humphreys & Bruce K. Johnson & John C. Whitehead, 2020. "Validity and reliability of contingent valuation and life satisfaction measures of welfare: An application to the value of national Olympic success," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 316-330, July.
    7. Pamela Wicker & Bernd Frick, 2020. "Sustainable Financing of Elite Athlete Development: An Empirical Analysis of Winter Sports in Austria," Sustainability, MDPI, vol. 12(22), pages 1-16, November.
    8. Martin Schnitzer & Lukas Haizinger, 2019. "Does the Olympic Agenda 2020 Have the Power to Create a New Olympic Heritage? An Analysis for the 2026 Winter Olympic Games Bid," Sustainability, MDPI, vol. 11(2), pages 1-21, January.
    9. Pamela Wicker & Dennis Coates, 2018. "Flame Goes Out: Determinants Of Individual Support At The 2024 Hamburg Games Referendum," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 302-317, April.
    10. Josh Matti & Yang Zhou, 2022. "United we feel stronger? On the Olympics and political ideology," Economics of Governance, Springer, vol. 23(3), pages 271-300, December.
    11. Zawojska, Ewa & Gastineau, Pascal & Mahieu, Pierre-Alexandre & Cheze, Benoit & Paris, Anthony, 2021. "Measuring policy consequentiality perceptions in stated preference surveys," 2021 Annual Meeting, August 1-3, Austin, Texas 313977, Agricultural and Applied Economics Association.
    12. Tobias Streicher & Sascha L. Schmidt & Dominik Schreyer, 2019. "Referenda on Hosting the Olympics: What Drives Voter Turnout?," Journal of Sports Economics, , vol. 20(5), pages 627-653, June.
    13. Whitehead, John C. & Wicker, Pamela, 2018. "Estimating willingness to pay for a cycling event using a willingness to travel approach," Tourism Management, Elsevier, vol. 65(C), pages 160-169.
    14. Funahashi, Hiroaki & Shibli, Simon & Sotiriadou, Popi & Mäkinen, Jarmo & Dijk, Bake & De Bosscher, Veerle, 2020. "Valuing elite sport success using the contingent valuation method: A transnational study," Sport Management Review, Elsevier, vol. 23(3), pages 548-562.
    15. Chun-Chu Yeh & Cheng-Shen Lin & Chin-Huang Huang, 2018. "The Total Economic Value of Sport Tourism in Belt and Road Development—An Environmental Perspective," Sustainability, MDPI, vol. 10(4), pages 1-14, April.

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    contingent valuation method; willingness-to-pay; olympic games; public goods; sport event;
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