[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/war/wpaper/2020-06.html
   My bibliography  Save this paper

Payment and policy consequentiality in dichotomous choice contingent valuation: Experimental design effects on self-reported perceptions

Author

Listed:
  • Tobias Börger

    (Economics Division, University of Stirling)

  • Tenaw G. Abate

    (NORCE Norwegian Research Centre AS, Siva Innovasjonssenter)

  • Margrethe Aanesen

    (Norwegian College of Fishery Science, UiT – Arctic University of Norway)

  • Ewa Zawojska

    (Faculty of Economics Sciences, University of Warsaw)

Abstract
Although the contingent valuation literature emphasises the importance of controlling for respondents’ consequentiality perceptions, this literature has rarely accounted for the difference between payment and policy consequentiality. We examine the influence of the randomly assigned tax amount on consequentiality self-reports and their potential endogeneity using data from a single dichotomous choice survey about reducing marine plastic pollution in Norway. Results show that consequentiality perceptions are a function of the tax amount, with payment consequentiality decreasing and policy consequentiality increasing with higher tax amounts. We discuss the challenge of finding valid instruments to address potential endogeneity of consequentiality perceptions.

Suggested Citation

  • Tobias Börger & Tenaw G. Abate & Margrethe Aanesen & Ewa Zawojska, 2020. "Payment and policy consequentiality in dichotomous choice contingent valuation: Experimental design effects on self-reported perceptions," Working Papers 2020-05, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2020-06
    as

    Download full text from publisher

    File URL: https://www.wne.uw.edu.pl/index.php/download_file/5445/
    File Function: First version, 2020
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Zawojska, Ewa & Bartczak, Anna & Czajkowski, Mikołaj, 2019. "Disentangling the effects of policy and payment consequentiality and risk attitudes on stated preferences," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 63-84.
    2. Christian A. Vossler & Maurice Doyon & Daniel Rondeau, 2012. "Truth in Consequentiality: Theory and Field Evidence on Discrete Choice Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(4), pages 145-171, November.
    3. Yohei Mitani & Nicholas Flores, 2014. "Hypothetical Bias Reconsidered: Payment and Provision Uncertainties in a Threshold Provision Mechanism," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(3), pages 433-454, November.
    4. Patrick Lloyd-Smith & Wiktor Adamowicz & Diane Dupont, 2019. "Incorporating Stated Consequentiality Questions in Stated Preference Research," Land Economics, University of Wisconsin Press, vol. 95(3), pages 293-306.
    5. Stafford, Richard & Jones, Peter JS Dr, 2019. "Viewpoint – Ocean Plastic Pollution: a convenient but distracting truth?," MarXiv fu5dp, Center for Open Science.
    6. Li, Xiaogu & Jensen, Kimberly L. & Lambert, Dayton M. & Clark, Christopher D., 2018. "Consequentiality Beliefs And Consumer Valuation Of Extrinsic Attributes In Beef," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 50(1), pages 1-26, February.
    7. Hwang, Joonghyun & Petrolia, Daniel R. & Interis, Matthew G., 2014. "Consequentiality and Opt-out Responses in Stated Preference Surveys," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0, pages 1-18.
    8. Richard T. Carson & W. Michael Hanemann & Raymond J. Kopp & Jon A. Krosnick & Robert Cameron Mitchell & Stanley Presser, 1998. "Referendum Design And Contingent Valuation: The Noaa Panel'S No-Vote Recommendation," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 484-487, August.
    9. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    10. Interis, Matthew & Petrolia, Daniel, 2014. "The Effects of Consequentiality in Binary- and Multinomial-Choice Surveys," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), pages 1-16.
    11. Flores, Nicholas E. & Strong, Aaron, 2007. "Cost credibility and the stated preference analysis of public goods," Resource and Energy Economics, Elsevier, vol. 29(3), pages 195-205, September.
    12. Laura Greene Knapp & Terry Seaks, 1998. "A Hausman test for a dummy variable in probit," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 321-323.
    13. Peter A. Groothuis & Tanga M. Mohr & John C. Whitehead & Kristan Cockerill, 2017. "Endogenous Consequentiality in Stated Preference Referendum Data: The Influence of the Randomly Assigned Tax Amount," Land Economics, University of Wisconsin Press, vol. 93(2), pages 258-268.
    14. Herriges, Joseph & Kling, Catherine & Liu, Chih-Chen & Tobias, Justin, 2010. "What are the consequences of consequentiality?," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 67-81, January.
    15. Czajkowski, Mikołaj & Vossler, Christian A. & Budziński, Wiktor & Wiśniewska, Aleksandra & Zawojska, Ewa, 2017. "Addressing empirical challenges related to the incentive compatibility of stated preferences methods," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 47-63.
    16. Malte Oehlmann & Jürgen Meyerhoff, 2017. "Stated preferences towards renewable energy alternatives in Germany – do the consequentiality of the survey and trust in institutions matter?," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 6(1), pages 1-16, January.
    17. Abate, Tenaw G. & Börger, Tobias & Aanesen, Margrethe & Falk-Andersson, Jannike & Wyles, Kayleigh J. & Beaumont, Nicola, 2020. "Valuation of marine plastic pollution in the European Arctic: Applying an integrated choice and latent variable model to contingent valuation," Ecological Economics, Elsevier, vol. 169(C).
    18. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    19. Vossler, Christian A. & Holladay, J. Scott, 2018. "Alternative value elicitation formats in contingent valuation: Mechanism design and convergent validity," Journal of Public Economics, Elsevier, vol. 165(C), pages 133-145.
    20. Vossler, Christian A. & Watson, Sharon B., 2013. "Understanding the consequences of consequentiality: Testing the validity of stated preferences in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 137-147.
    21. Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
    22. Patricia A. Champ & Nicholas E. Flores & Thomas C. Brown & PJames Chivers, 2002. "Contingent Valuation and Incentives," Land Economics, University of Wisconsin Press, vol. 78(4), pages 591-604.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tensay Hadush Meles & Razack Lokina & Erica Louis Mtenga & Julieth Julius Tibanywana, 2023. "Stated Preferences with Survey Consequentiality and Outcome Uncertainty: A Split Sample Discrete Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(4), pages 717-754, December.
    2. Ewa Zawojska & Michał Krawczyk, 2022. "Incentivizing stated preference elicitation with choice-matching in the field," Working Papers 2022-04, Faculty of Economic Sciences, University of Warsaw.
    3. Daniel A. Brent & Lata Gangadharan & Anke D. Leroux & Paul A. Raschky, 2022. "Reducing bias in preference elicitation for environmental public goods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 280-308, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zawojska, Ewa & Bartczak, Anna & Czajkowski, Mikołaj, 2019. "Disentangling the effects of policy and payment consequentiality and risk attitudes on stated preferences," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 63-84.
    2. 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.
    3. Malte Welling & Ewa Zawojska & Julian Sagebiel, 2022. "Information, Consequentiality and Credibility in Stated Preference Surveys: A Choice Experiment on Climate Adaptation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 257-283, May.
    4. Wei, Xuan & Khachatryan, Hayk, 2023. "How consequential is policy consequentiality? Evidence from online discrete choice experiment with ornamental plants," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    5. Daniel A. Brent & Lata Gangadharan & Anke D. Leroux & Paul A. Raschky, 2022. "Reducing bias in preference elicitation for environmental public goods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 280-308, April.
    6. Jie He & Jérôme Dupras & Franck Ndefo & Thomas Poder, 2020. "Payment and provision consequentiality in voluntary contribution mechanism: separate or joint effects?," Letters in Spatial and Resource Sciences, Springer, vol. 13(1), pages 11-36, April.
    7. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part II. Conceptualisation of external validity, sources and explanations of bias and effectiveness of mitigation methods," Journal of choice modelling, Elsevier, vol. 41(C).
    8. Crastes dit Sourd, Romain & Zawojska, Ewa & Mahieu, Pierre-Alexandre & Louviere, Jordan, 2018. "Mitigating strategic misrepresentation of values in open-ended stated preference surveys by using negative reinforcement," Journal of choice modelling, Elsevier, vol. 28(C), pages 153-166.
    9. Zawojska Ewa, 2017. "A Consequential Contingent Valuation Referendum: Still Not Enough to Elicit True Preferences for Public Goods!," Central European Economic Journal, Sciendo, vol. 2(49), pages 73-90, December.
    10. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part II. Macro-scale analysis of literature and effectiveness of bias mitigation methods," Papers 2102.02945, arXiv.org.
    11. Mark A. Andor & Manuel Frondel & Marco Horvath, 2021. "Consequentiality, Elicitation Formats, and the Willingness to Pay for Green Electricity: Evidence from Germany," Land Economics, University of Wisconsin Press, vol. 97(3), pages 626-640.
    12. Needham, Katherine & Czajkowski, Mikołaj & Hanley, Nick & LaRiviere, Jacob, 2018. "What is the causal impact of information and knowledge in stated preference studies?," Resource and Energy Economics, Elsevier, vol. 54(C), pages 69-89.
    13. Paul R. Hindsley & O. Ashton Morgan, 2022. "The Role of Cultural Worldviews in Willingness to Pay for Environmental Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(2), pages 243-269, February.
    14. Jie He & Jérôme Dupras & Thomas G. Poder, 2018. "Payment and Provision Consequentiality in Voluntary Contribution Mechanism: Single or Double “Knife-Edge” Evidence?," Cahiers de recherche 18-02, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    15. Ewa Zawojska & Michał Krawczyk, 2022. "Incentivizing stated preference elicitation with choice-matching in the field," Working Papers 2022-04, Faculty of Economic Sciences, University of Warsaw.
    16. Khachatryan, Hayk & Rihn, Alicia & Wei, Xuan, 2021. "Consumers’ Preferences for Eco-labels on Plants: The Influence of Trust and Consequentiality Perceptions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 91(C).
    17. Pengfei Liu & Xiaohui Tian, 2021. "Downward Hypothetical Bias in the Willingness to Accept Measure for Private Goods: Evidence from a Field Experiment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1679-1699, October.
    18. Zawojska, Ewa & Bartczak, Anna & Czajkowski, Mikotaj, 2017. "Disentangling impacts of payment and provision consequentiality and risk attitudes on stated preferences," Annual Meeting, 2017, June 18-21, Montreal, Canada 258602, Canadian Agricultural Economics Society.
    19. Meles, Tensay Hadush & Lokina, Razack & Mtenga, Erica Louis & Tibanywana, Julieth Julius, 2023. "Stated preferences with survey consequentiality and outcome uncertainty: A split sample discrete choice experiment," EfD Discussion Paper 23-16, Environment for Development, University of Gothenburg.
    20. Christian A. Vossler & Stéphane Bergeron & Maurice Doyon & Daniel Rondeau, 2023. "Revisiting the Gap between the Willingness to Pay and Willingness to Accept for Public Goods," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 10(2), pages 413-445.

    More about this item

    Keywords

    Contingent valuation; single dichotomous choice; payment consequentiality; policy consequentiality; endogeneity; marine plastic pollution;
    All these keywords.

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:war:wpaper:2020-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marcin Bąba (email available below). General contact details of provider: https://edirc.repec.org/data/fesuwpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.