Prior knowledge, familiarity and stated policy consequentiality in contingent valuation

Needham, K. and Hanley, N. (2020) Prior knowledge, familiarity and stated policy consequentiality in contingent valuation. Journal of Environmental Economics and Policy, 9(1), pp. 1-20. (doi: 10.1080/21606544.2019.1611481)

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Abstract

Stated preference surveys are more likely to be demand revealing if the respondent views their responses as consequential i.e. the respondent cares about the policy in question, believes their response will affect the provision of the good and that they will be required to pay the stated amount. In this paper, we contribute to the growing literature on the subject by examining the influence of a respondent’s prior knowledge about the good being valued on stated policy consequentiality. We find that consistent with previous research, willingness to pay varies according to stated consequentiality; and that stated consequentiality itself varies according to a number of observables. Consequentiality and willingness to pay appear to be related on a continuum but this estimate is revised downwards for respondents with a high a priori knowledge of the good. Additionally, we enquire which observed variables influence respondents stated policy consequentiality and share our concerns that a single Likert scale question does not adequately capture a respondent’s belief over consequentiality.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Hanley, Professor Nicholas and Simpson, Dr Katherine
Authors: Needham, K., and Hanley, N.
College/School:College of Medical Veterinary and Life Sciences > Institute of Biodiversity Animal Health and Comparative Medicine
Journal Name:Journal of Environmental Economics and Policy
Publisher:Taylor & Francis
ISSN:2160-6544
ISSN (Online):2160-6552
Published Online:10 May 2019
Copyright Holders:Copyright © 2019 Informa UK Limited
First Published:First published in Journal of Environmental Economics and Policy 9(1):1-20
Publisher Policy:Reproduced in accordance with the publisher copyright policy

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