Modelling Winners and Losers in Contingent Valuation of Public Goods: Appropriate Welfare Measures and Econometric Analysis

By P. Clinch, Anthony Murphy, Ie. 2001

114 citations recorded by the source corpus.

Contingent valuation is now the most widely used method for valuing non-marketed goods in cost-benefit analysis. Yet, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay to being non-negative. This can result in significant errors in policymaking. This paper examines the importance of this, explores appropriate welfare measures for assessing losses and gains, demonstrates how these can be elicited explicitly, highlights the sensitivity of the results of such studies to the econometric specification employed and suggests ways of dealing with it. Finally, the implications for policy are examined.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/b9d8c213a75fb7b838f72d2311e5ac02505e4002

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In Economics and Econometrics

Citations in the corpus

Willingness to pay entrance fees to natural attractions: An Icelandic case study (2008, background): “Membership of environmental organisations and attitude towards environment protection have been found to be closely related to WTP (Carlsson and Johansson-Stenman, 2000; Clinch and Murphy 2001).”
Estimating the non-market benefits of an urban park: Does proximity matter? (2007, methodology): “And, the second one, 3.5%, accounts for the long-term nature of many environmental benefits that may extend beyond the life of other project effects. econometric specification assumed (see, for example Hanemann and Kanninen, 1966; Clinch and Murphy, 2001).”
Cost-Benefit Analysis and the Environment: Recent Developments (2006, background): “A number of studies have sought to examine this problem of negative WTP including Clinch and Murphy (2001) and Bohara et al. (2001).”