Contingent Valuation with Heterogeneous Reasons for Uncertainty

12 Pages Posted: 21 Jul 2011

See all articles by Daniel R. Petrolia

Daniel R. Petrolia

Mississippi State University - Department of Agricultural Economics

Tae-Goun Kim

Independent

Date Written: November 30, 2009

Abstract

We test the hypothesis that respondents stating divergent reasons for choice uncertainty differ in their probability to vote yes in a CV setting. We introduce the use of a follow-up question used to classify uncertain respondents according to reason for uncertainty. Results indicate that respondents whose uncertainty derived from concerns about unforeseen negative impacts associated with provision of the good were more likely to vote yes, and depending on the model, that the probability of a yes vote of these respondents was consistently different than that of respondents whose uncertainty derived from concern about cost of provision or expected benefits.

Keywords: Barrier islands, Cheap talk, Coastal restoration, Contingent valuation, Survey, Willingness to pay

JEL Classification: Q51

Suggested Citation

Petrolia, Daniel R. and Kim, Tae-Goun, Contingent Valuation with Heterogeneous Reasons for Uncertainty (November 30, 2009). Resource and Energy Economics, Vol. 33, No. 3, 2011, Available at SSRN: https://ssrn.com/abstract=1889251

Daniel R. Petrolia (Contact Author)

Mississippi State University - Department of Agricultural Economics ( email )

Box 5187
Mississippi State, MS 39762
United States

Tae-Goun Kim

Independent ( email )

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