Preference and WTP stability for public forest management

Czajkowski, M., Bartczak, A., Budziński, W., Giergiczny, M. and Hanley, N. (2016) Preference and WTP stability for public forest management. Forest Policy and Economics, 71, pp. 11-22. (doi: 10.1016/j.forpol.2016.06.027)

[img]
Preview
Text
154097.pdf - Accepted Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

1MB

Abstract

The assumption of the stability of preferences is fundamental to consumer theory and the use of cost-benefit analysis. Many papers within the stated preferences literature have tested this assumption, and have found mixed results. Individuals may become more sure of their preferences as they repeat a valuation task or purchase decision; they may also learn more about prices and quantities of substitutes or complements over time, or about other relevant characteristics of both the good being valued, and alternatives in their choice sets. In this paper, we test for the stability of preferences and willingness to pay for attributes of forest management both within one survey and between two different moments of time. The “within survey” test compares a set of responses from individuals over the sequence of the first 12 and the second 12 choices in a stated preference survey. The “between two different moments of time” test compares responses from the same people over a period of 6 months. Non-parametric analysis reveals little clear trending in choices across these sets, although a higher consistency for status quo choices than for enhanced environmental management choices is apparent. Overall, we reject the strictest test of the equivalence of WTP distributions between choice sets. However, we also find that respondents' mean willingness to pay is fairly stable both within survey and between moments of time. Such differences as emerge are mainly driven by the changes in variances of WTP and by imperfect correlations of individual-specific WTP between choice sets.

Item Type:Articles
Additional Information:This study was carried out as a part of the NEWFOREX project (New Ways to Value and Market Forest Externalities, FP7-KBBE-2009-3, Project no. 243950). Funding support is gratefully acknowledged. MC gratefully acknowledges the support of the Polish Ministry of Science and Higher Education and the Foundation for Polish Science.
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Hanley, Professor Nicholas
Authors: Czajkowski, M., Bartczak, A., Budziński, W., Giergiczny, M., and Hanley, N.
College/School:College of Medical Veterinary and Life Sciences > School of Biodiversity, One Health & Veterinary Medicine
Journal Name:Forest Policy and Economics
Publisher:Elsevier
ISSN:1389-9341
ISSN (Online):1872-7050
Published Online:11 July 2016
Copyright Holders:Copyright © 2016 Elsevier B.V.
First Published:First published in Forest Policy and Economics 71: 11-22
Publisher Policy:Reproduced in accordance with the publisher copyright policy

University Staff: Request a correction | Enlighten Editors: Update this record