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Construct Validity of Averting Cost Measures of Environmental Benefits

Author

Listed:
  • Andrew S. Laughland
  • Wesley N. Musser
  • James S. Shortle
  • Lynn M. Musser
Abstract
Construct validity is concerned with the consistency of empirical measures with theoretical relationships. This paper reviews and extends the theoretical relationship between averting costs and willingness to pay. Measures of these two theoretical constructs with empirical averting costs savings and contingent valuation from one population are used to establish construct validity of the averting cost technique used. Empirical results indicate that the contingent valuation and averting costs measures have a low correlation. Although low correlation is consistent with the construct validity of averting costs measures, these results indicate that inferences from averting cost measures are quite limited.

Suggested Citation

  • Andrew S. Laughland & Wesley N. Musser & James S. Shortle & Lynn M. Musser, 1996. "Construct Validity of Averting Cost Measures of Environmental Benefits," Land Economics, University of Wisconsin Press, vol. 72(1), pages 100-112.
    • Handle: RePEc:uwp:landec:v:72:y:1996:i:1:p:100-112
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    Citations

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    Cited by:

    1. Namatié Traoré & Nabil Amara & Réjean Landry, 1999. "Households’ Response to Groundwater Quality Degradation Results from a Household Survey in Quebec," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 52, pages 5-22.
    2. Rajapakshe, Sisira & Termansen, Mette & Paavola, Jouni, 2022. "Valuing Water Service Improvements through Revealed Preference: Averting Behaviour Method," MPRA Paper 115623, University Library of Munich, Germany.
    3. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    4. Beilei Cai & Trudy Cameron & Geoffrey Gerdes, 2010. "Distributional Preferences and the Incidence of Costs and Benefits in Climate Change Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(4), pages 429-458, August.
    5. Mi-Jung Um & Seung-Jun Kwak & Tai-Yoo Kim, 2002. "Estimating Willingness to Pay for Improved Drinking Water Quality Using Averting Behavior Method with Perception Measure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(3), pages 285-300, March.
    6. Baral, Nabin & Stern, Marc J. & Bhattarai, Ranju, 2008. "Contingent valuation of ecotourism in Annapurna conservation area, Nepal: Implications for sustainable park finance and local development," Ecological Economics, Elsevier, vol. 66(2-3), pages 218-227, June.
    7. Francesco Jacopo Pintus, 2023. "Valuing drinking water quality after a PFAS contamination event: results from a meta-analysis benefit transfer," "Marco Fanno" Working Papers 0308, Dipartimento di Scienze Economiche "Marco Fanno".
    8. Marta Suárez-Varela & Ariel Dinar, 2020. "The Role of Curtailment Versus Efficiency on Spillovers Among Pro-Environmental Behaviors: Evidence from Two Towns in Granada, Spain," Sustainability, MDPI, vol. 12(3), pages 1-24, January.
    9. N. Traoré & N. Amara & R. Landry, 1999. "Households’ Response to Groundwater Quality Degradation Results from a Household Survey in Quebec," Post-Print hal-01200915, HAL.
    10. Li, Zhengtao & Hu, Bin, 2018. "Perceived health risk, environmental knowledge, and contingent valuation for improving air quality: New evidence from the Jinchuan mining area in China," Economics & Human Biology, Elsevier, vol. 31(C), pages 54-68.
    11. Jason F. Shogren & Tommy Stamland, 2005. "Self-Protection and Value of Statistical Life Estimation," Land Economics, University of Wisconsin Press, vol. 81(1).
    12. John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, 2008. "Combining Revealed And Stated Preference Data To Estimate The Nonmarket Value Of Ecological Services: An Assessment Of The State Of The Science," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 872-908, December.
    13. Traoré, Namatié & Amara, Nabil & Landry, Réjean, 1999. "Households’ Response to Groundwater Quality Degradation Results from a Household Survey in Quebec," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 52.
    14. John C. Whitehead & Thomas J. Hoban & George Van Houtven, 1999. "Averting Behavior and Drinking Water Quality," Working Papers 9905, East Carolina University, Department of Economics.
    15. Nunes, Paulo A. L. D. & van den Bergh, Jeroen C. J. M., 2001. "Economic valuation of biodiversity: sense or nonsense?," Ecological Economics, Elsevier, vol. 39(2), pages 203-222, November.

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