Czajkowski, M. and Hanley, N. (2009) Using labels to investigate scope effects in stated preference methods. Environmental and Resource Economics, 44, pp. 521-535. (doi: 10.1007/s10640-009-9299-z)
Full text not currently available from Enlighten.
Abstract
Insufficient sensitivity to scope (variations in the scale of the environmental good on offer) remains a major criticism of stated preference methods, and many studies fail a scope test of some sort. Across a range of existing explanations for insensitivity to scope (commodity mis-specification, embedding, warm glows) there seems to exist no clear conclusion on how to deal with the problem. This paper provides an alternative explanation for insufficient sensitivity to scope, based on re-definition of the determinants of value for environmental goods within an attributes-based choice model. In the proposed framework respondents’ Willingness To Pay need depend not only on physical characteristics of a good, but may also depend on the ‘label’ under which the environmental good is ‘sold’ in the hypothetical market. To investigate this problem, a Choice Experiment study of biodiversity was conducted. We find that controlling for the effects of a label—in this case, national park designation—leads to significant increase in the scope sensitivity of welfare measures.
Item Type: | Articles |
---|---|
Additional Information: | The research was funded by 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., and Hanley, N. |
College/School: | College of Medical Veterinary and Life Sciences > School of Biodiversity, One Health & Veterinary Medicine |
Journal Name: | Environmental and Resource Economics |
Publisher: | Springer |
ISSN: | 0924-6460 |
ISSN (Online): | 1573-1502 |
Published Online: | 27 June 2009 |
University Staff: Request a correction | Enlighten Editors: Update this record