The Stated Preference Approach to Environmental Valuation

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1 The Stated Preference Approach to Environmental Valuation Volume I: Foundations, Initial Development, Statistical Approaches Edited by Richard T. Carson University of California, San Diego, USA ASHGATE

2 Contents Acknowledgements Series Preface Introduction ix xiii xv PART I CONCEPTUAL AND THEORETICAL FOUNDATIONS 1 J.R. Hicks (1943), 'The Four Consumer's Surpluses', Review of Economic Studies, 11, pp Howard R. Bowen (1943), 'The Interpretation of Voting in the Allocation of Economic Resources', Quarterly Journal of Economics, 58, pp S.V. Ciriacy-Wantrup (1947), 'Capital Returns from Soil-Conservation Practices', Journal of Farm Economics, 29, pp T.C. Schelling (1968), 'The Life You Save May Be Your Own', in S. Chase (ed.), Problems in Public Expenditure Analysis, Washington, DC: Brookings Institution, pp Paul A. Samuelson (1954), 'The Pure Theory of Public Expenditure', Review of Economics and Statistics, 36, pp L. Gregory Hines (1951), 'Wilderness Areas: An Extra-Market Problem in Resource Allocation', Land Economics, 27, pp John V. Krutilla (1967), 'Conservation Reconsidered', American Economic Review, 57, pp Burt A. Weisbrod (1964), 'Collective-Consumption Services of Individual- Consumption Goods', Quarterly Journal of Economics, 78, pp Kenneth J. Arrow and Anthony C. Fisher (1974), 'Environmental Preservation, Uncertainty, and Irreversibility', Quarterly Journal of Economics, 88, pp PART II EARLY APPLICATIONS 10 Robert K. Davis (1964), 'The Value of Big Game Hunting in a Private Forest', in Transactions of the Twenty-ninth North American Wildlife and Natural Resources Conference, 29, Washington, DC: Wildlife Management Institute, pp Charles J. Cicchetti and V. Kerry Smith (1973), 'Congestion, Quality Deterioration, and Optimal Use: Wilderness Recreation in the Spanish Peaks Primitive Area', Social Science Research, 2, pp Arthur H. Darling (1973), 'Measuring Benefits Generated by Urban Water Parks', Land Economics, 49, pp Kenneth E. McConnell (1977), 'Congestion and a Willingness to Pay: A Study of Beach Use', Land Economics, 53, pp

14 Alan Randall, Berry Ives and Clyde Eastman (1974), 'Bidding Games for Valuation of Aesthetic Environmental Improvements', Journal of Environmental Economics and Management, 1, pp. 132-49.

3 14 Alan Randall, Berry Ives and Clyde Eastman (1974), 'Bidding Games for Valuation of Aesthetic Environmental Improvements', Journal of Environmental Economics and Management, 1, pp David S. Brookshire, Berry C. Ives and William D. Schulze (1976), 'The Valuation of Aesthetic Preferences', Journal of Environmental Economics and Management,?),^ Frederick W. Gramlich (1977), 'The Demand for Clean Water: The Case of the Charles River', National Tax Journal, 30, pp Douglas A. Greenley, Richard G. Walsh and Robert A. Young (1981), 'Option Value: Empirical Evidence from a Case Study of Recreation and Water Quality', Quarterly Journal of Economics, 96, pp Richard C. Bishop and Thomas A. Heberlein (1979), 'Measuring Values of Extramarket Goods: Are Indirect Measures Biased?', American Journal of Agricultural Economics, 61, pp Edna Loehman and Vo Hu De (1982), 'Application of Stochastic Choice Modeling to Policy Analysis of Public Goods: A Case Study of Air Quality Improvements', Review of Economics and Statistics, 64, pp PART III EARLY TESTS OF VALIDITY 20 Jack L. Knetsch and Robert K. Davis (1966), 'Comparisons of Methods for Resource Evaluation', in Allen V. Kneese and Stephen C. Smith (eds), Water Research, Baltimore, MD: Johns Hopkins University Press, pp. 125^ Peter Bohm (1972), 'Estimating Demand for Public Goods: An Experiment', European Economic Review, 3, pp David S. Brookshire, Mark A. Thayer, William D. Schulze and Ralph C. d'arge (1982), 'Valuing Public Goods: A Comparison of Survey and Hedonic Approaches', American Economic Review, 72, pp Mark A. Thayer (1981), 'Contingent Valuation Techniques for Assessing Environmental Impacts: Further Evidence', Journal of Environmental Economics and Management, 8, pp William D. Schulze, Ralph C. d'arge and David S. Brookshire (1981), 'Valuing Environmental Commodities: Some Recent Experiments', Land Economics, 57, pp Ronald J. Sutherland and Richard G. Walsh (1985), 'Effect of Distance on the Preservation Value of Water Quality', Land Economics, 61, pp William H. Desvousges, V. Kerry Smith and Ann Fisher (1987), 'Option Price Estimates for Water Quality Improvements: A Contingent Valuation Study for the Monongahela River', Journal of Environmental Economics and Management, 14, pp W. Kip Viscusi, Wesley A. Magat and Joel Huber (1991), 'Pricing Environmental Health Risks: Survey Assessments of Risk - Risk and Risk - Dollar Trade-Offs for Chronic Bronchitis', Journal of Environmental Economics and Management, 21, pp

vii PART IV STATISTICAL APPROACHES 28 W. Michael Hanemann (1984), 'Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses', American Journal of Agricultural Economics, 66, pp.

4 vii PART IV STATISTICAL APPROACHES 28 W. Michael Hanemann (1984), 'Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses', American Journal of Agricultural Economics, 66, pp Trudy Ann Cameron and Michelle D. James (1987), 'Efficient Estimation Methods for 'Closed-Ended' Contingent Valuation Surveys', Review of Economics and Statistics, 69, pp Trudy Ann Cameron (1988), 'A New Paradigm for Valuing Non-market Goods Using Referendum Data: Maximum Likelihood Estimation by Censored Logistic Regression', Journal of Environmental Economics and Management, 15, pp K.E. McConnell (1990), 'Models for Referendum Data: The Structure of Discrete Choice Models for Contingent Valuation', Journal of Environmental Economics and Management, 18, pp Daniel McFadden (1994), 'Contingent Valuation and Social Choice', American Journal ofagricultural Economics, 76, pp Timothy Park, John B. Loomis and Michael Creel (1991), 'Confidence Intervals for Evaluating Benefits Estimates from Dichotomous Choice Contingent Valuation Studies', Land Economics, 67, pp Bengt Kristrom (1990), 'A Non-Parametric Approach to the Estimation of Welfare Measures in Discrete Response Valuation Studies', Land Economics, 66, pp Richard T. Carson and Dan Steinberg (1990), 'Experimental Design for Discrete Choice Voter Preference Surveys', 1989 Proceeding of the American Statistical Association: Survey Methodology Section, Washington, DC: American Statistical Association, pp Timothy C. Haab and Kenneth E. McConnell (1997), 'Referendum Models and Negative Willingness to Pay: Alternative Solutions', Journal of Environmental Economics and Management, 32, pp Bengt Kristrom (1997), 'Spike Models in Contingent Valuation', American Journal ofagricultural Economics, 79, pp Megan Werner (1999), 'Allowing for Zeros in Dichotomous-Choice Contingent- Valuation Models', Journal of Business and Economic Statistics, 17, pp Barbara J. Kanninen (1995), 'Bias in Discrete Response Contingent Valuation', Journal of Environmental Economics and Management, 28, pp Michael Hanemann, John Loomis and Barbara Kanninen (1991), 'Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation', American Journal of Agricultural Economics, 73, pp Anna Alberini, Barbara Kanninen and Richard T. Carson (1997), 'Modeling Response Incentive Effects in Dichotomous Choice Contingent Valuation Data', Land Economics, 73, pp Trudy Ann Cameron and Daniel D. Huppert (1991), 'Referendum Contingent Valuation Estimates: Sensitivity to the Assignment of Offered Values', Journal of the American Statistical Association, 86, pp

5 43 Anna Alberini (1995), 'Optimal Designs for Discrete Choice Contingent Valuation Surveys: Single-Bound, Double-Bound, and Bivariate Models', Journal of Environmental Economics and Management, 28, pp Name Index 589

Starting-point Bias and Respondent Uncertainty in Dichotomous Choice Contingent Valuation Surveys

Starting-point Bias and Respondent Uncertainty in Dichotomous Choice Contingent Valuation Surveys by Emmanuel Flachaire Université Paris 1 Panthéon-Sorbonne and Guillaume Hollard Université de Marne la