Willingness to Pay for Quality Improvements: Should Revealed and Stated Preference Data Be Combined?

In this article we propose theoretically consistent welfare measurement of use and nonuse values for an improvement in environmental quality with revealed and stated preference data. An analytical model based on the comparative static analysis of the variation function that describes the relationshi...

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Bibliographic Details
Published inJournal of environmental economics and management Vol. 34; no. 3; pp. 240 - 255
Main Authors Huang, Ju-Chin, Haab, Timothy C., Whitehead, John C.
Format Journal Article
LanguageEnglish
Published New York Elsevier Inc 01.11.1997
Elsevier
Academic Press
Elsevier Science Publishing Company, Inc
SeriesJournal of Environmental Economics and Management
Subjects
Economic models
Environmental economics
Environmental protection
Environmental quality
Public good
Quality
Quality control
Studies
Valuation
Willingness to pay
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Summary:In this article we propose theoretically consistent welfare measurement of use and nonuse values for an improvement in environmental quality with revealed and stated preference data. An analytical model based on the comparative static analysis of the variation function that describes the relationship between recreation demand and dichotomous choice contingent valuation models is estimated. Our results show that revealed and stated data should not be combined under the same assumed preference structure unless the two decisions imply the same change in behavior induced by the quality change. In addition, our results indicate scope effects in willingness to pay measures estimated with stated preference data.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0095-0696
1096-0449
DOI:10.1006/jeem.1997.1013