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Coherent Arbitrariness: On Value Uncertainty for Environmental Goods

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Listed:
  • Nick Hanley
  • Bengt Kriström
  • Jason F. Shogren
Abstract
This paper investigates the idea that people are unsure about the value they place on prospective changes in environmental goods. In particular, we focus on a parametric explanation of the determinants of a "value gap," the difference between the most someone is sure they would pay for an increase in an environmental good, and the smallest amount they are sure they would not pay. We also present a simple means of calculating aggregate willingness to pay from data on the range of willingness to pay expressed via a payment ladder.

Suggested Citation

  • Nick Hanley & Bengt Kriström & Jason F. Shogren, 2009. "Coherent Arbitrariness: On Value Uncertainty for Environmental Goods," Land Economics, University of Wisconsin Press, vol. 85(1), pages 41-50.
    • Handle: RePEc:uwp:landec:v:85:y:2009:i:1:p:41-50
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    References listed on IDEAS

    as
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    8. Welsh, Michael P. & Poe, Gregory L., 1998. "Elicitation Effects in Contingent Valuation: Comparisons to a Multiple Bounded Discrete Choice Approach," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 170-185, September.
    9. Sims,Christopher A. (ed.), 1994. "Advances in Econometrics," Cambridge Books, Cambridge University Press, number 9780521444590, September.
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    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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