Incorporating zero values in the economic valuation of environmental program benefits

Benjamin Reiser; Mordechai Shechter

doi:10.1002/(SICI)1099-095X(199901/02)10:1<87::AID-ENV339>3.0.CO;2-Q

Incorporating zero values in the economic valuation of environmental program benefits

Research output: Contribution to journal › Article › peer-review

Abstract

The contingent valuation method estimates individuals' willingness to pay (WTP) for non-market environmental assets via preferences elicited by either open-ended or dichotomous choice questions. Traditional analysis of such data has tended to ignore zero WTP values, or treat them in an unsatisfactory manner. Recently, spike models, which explicitly allow for and incorporate zero responses, have been suggested. The paper extends the spike model approach to allow for explanatory covariates, and shows how standard computer software can be used to carry out the computations. In addition, the paper develops estimates of mean or median willingness to pay as a function of these covariates.

Original language	English
Pages (from-to)	87-101
Number of pages	15
Journal	Environmetrics
Volume	10
Issue number	1
DOIs	https://doi.org/10.1002/(SICI)1099-095X(199901/02)10:1<87::AID-ENV339>3.0.CO;2-Q
State	Published - Jan 1999

Keywords

Contingent valuation
Logistic regression
Spike model
Willingness to pay

ASJC Scopus subject areas

Statistics and Probability
Ecological Modeling

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1002/(SICI)1099-095X(199901/02)10:1<87::AID-ENV339>3.0.CO;2-Q

Cite this

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Incorporating zero values in the economic valuation of environmental program benefits

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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