Vondolia, Kofi, Håkan Eggert, Jesper Stage and Ståle Navrud. 2014. “What do respondents bring to contingent valuation? A comparison of monetary and labour payment vehicles.” Journal of Environmental Economics and Policy 3:3: 253-267.
Download reference Doi:10.1080/21606544.2014.892034
In the contingent valuation method, both the goods being valued and the payment vehicles used to value them are mostly hypothetical. However, although numerous studies have examined the impact of experience with the good on the willingness to pay, less attention has been given to experience with the payment vehicles.
This paper examines how experience with payment vehicles influence responses to a contingent valuation scenario on maintaining irrigation canals in a developing country. Specifically, the paper uses a split-sample survey to investigate the effects of experience with monetary and labour payment vehicles on the acceptance of a contingent valuation scenario, protest bids and mean willingness to pay. Using convergent validity tests, we found that the experience acquired from using both monetary and labour payment vehicles reduces the asymmetries in acceptance rates. These findings suggest that experience with payment vehicles reduces time/money response asymmetries in the contingent valuation method.