A Review of WTA/WTP Studies

By John K. Horowitz, K. Mcconnell. 2002

1,046 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/03104b77fd47ea884b15bed46694cb62b1a8eb84

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Citations in the corpus

The Economic Effects of Climate Change (2009, background): “Empirical studies have shown that the willingness to pay for improved environmental services may be substantially lower than the willingness to accept compensation for diminished environmental services (for example, Horowitz and McConnell, 2002).”
Understanding Hypothetical Bias: An Enhanced Meta‐Analysis (2018, background): “We differentiate studies that elicit willingness to accept (WTA) values versus WTP (e.g., Bishop et al. 1983), as extensively reviewed by Horowitz and McConnell (2002) and Tuncel and Hammitt (2014).9 Based on previous meta-analyses (List and Gallet 2001; Murphy et al. 2005), we expect Public,…”
Modeling the interplay between affect and deliberation. (2015, background): “In one meta-analysis, Horowitz and McConnell (2002) found that, whereas the mean ratio of willingness to accept relative to willingness to pay for ordinary private goods was 2.9, this ratio was 10.1 for goods involving health and safety.”
Using Happiness Data for Environmental Valuation: Issues and Applications (2009, neutral): “In a recent review of 45 tests of the valuation disparity, the mean ratio of WTA values over WTP values was found to be over 7 (Horowitz and McConnell, 2002).”
The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment (2009, neutral): “Studies in environmental economics that employ this approach include Brons et al. (2008), Day (1999), de Blaeij et al. (2003), Florax et al. (2005), Horowitz and McConnell (2002), Santos (1998), Van Houtven et al. (2007), and van Kooten et al. (2007).”
Behavioral change for the circular economy: A review with focus on electronic waste management in the EU (2020, background): “An example of these elements coming into play is the significant difference between ‘willingness to pay’ and ‘willingness to accept’ reported by empirical studies (Horowitz and McConnell, 2002).”
Loss aversion without the endowment effect, and other explanations for the WTA-WTP disparity (2005, background): “Horowitz and McConnell(2002) report that the mean of the 59 WTAIWTP ratios reported in nine studies that used inexpensive market goods, such as mugs and candy bars, is 2.9.”
The value of a statistical life (2009, neutral): “literature on fatality risk, as well as other non-marketed amenities (Hammitt and Graham, 1999; Miller, 2000; Horowitz and McConnell, 2002; de Blaeij et al., 2003; Plott and Zeiler, 2005).”
Does it Matter When a Power Outage Occurs? - A Choice Experiment Study on the Willingness to Pay to Avoid Power Outages (2008, background): “hypothetical and real situations ( Horowitz and McConnell, 2002 ).”
Valuation Techniques for Social Cost-Benefit Analysis: (2011, background): “Numerous papers have found, however, that stated WTP is often far below stated WTA for the same good (Shogren et al, 1994; Horowitz and McConnell, 2002). Sugden (2005) argues that the most credible explanations for this relate to the psychological arguments concerning loss aversion and its derivativ”
Design of Stated Preference Surveys: Is There More to Learn from Behavioral Economics? (2010, result): “For example, the empirical findings regarding the huge differences between WTP and WTA (Hammack and Brown 1974; Horowitz and McConnell 2002) resulted in a number of experimental studies (see, e.g., Bateman et al. 1997; Kahneman et al. 1990) and theoretical model developments (see, e.g., Hanemann 199”
The endowment effect and the reference state: Evidence and manipulations (2009, background): “Similarly, they commonly demand more compensation to give up an entitlement than they are willing to pay to acquire it (reviewed in, for example, Samuelson and Zeckhauser, 1988; Rabin, 1998; and, with a focus on environmental values, Horowitz and McConnell, 2002 ).”
Cost-benefit analysis in the context of ecosystem services for human well-being: A multidisciplinary critique (2011, background): “…contingent valuation is the predominant use of WTP rather than WTA as a valuation measure, which ignores the actual allocation of rights over environmental resources and the pronounced discrepancy between these two measures when dealing with public ecosystem services (Horowitz and McConnell, 2002).”