Testing preference formation in learning design contingent valuation (LDCV) using advanced information and repetitive treatments

Policymakers have largely replaced Single Bounded Discrete Choice (SBDC) valuation by the more statistically efficient repetitive methods; Double Bounded Discrete Choice (DBDC) and Discrete Choice Experiments (DCE) . Repetitive valuation permits classification into rational preferences: (i) a priori well-formed; (ii) consistent non-arbitrary values “discovered” through repetition and experience; (Plott, 1996; List 2003) and irrational preferences; (iii) consistent but arbitrary values as “shaped” by preceding bid level (Tufano, 2010; Ariely et al., 2003) and (iv) inconsistent and arbitrary values. Policy valuations should demonstrate behaviorally rational preferences. We outline novel methods for testing this in DBDC applied to renewable energy premiums in Chile.

Measuring non-use value of environmental goods using the contingent valuation method:problems of information and cognition and the application of cognitive questionnaire design methods

Much interest now focuses on the use of the contingent valuation method (CVM) to assess non-use value of environmental goods. The paper reviews recent literature and highlights particular problems of information provision and respondent knowledge, comprehension and cognition. These must be dealt with by economists in designing CVM surveys for eliciting non-use values. Cognitive questionnaire design methods are presented which invoke concepts from psychology and tools from cognitive survey design (focus groups and verbal reports) to reduce a complex environmnetal good into a meaningful commodity that can be valued by respondents in a contingent market. This process is illustrated with examples from the authors' own research valuing alternative afforestation programmes. -Authors

Exploring divergence between respondent and researcher definitions of the good in contingent valuation studies

In Contingent Valuation studies, researchers often base their definition of the environmental good on scientific/expert consensus. However, respondents may not hold this same commodity definition prior to the transaction. This raises questions as to the potential for staging a satisfactory transaction, based on Fischoff and Furby's (1988) criteria. Some unresolved issues regarding the provision of information to respondents to facilitate such a transaction are highlighted. In this paper, we apply content analysis to focus group discussions and develop a set of rules which take account of the non-independence of group data to explore whether researcher and respondents' prior definitions are in any way similar. We use the results to guide information provision in a subsequent questionnaire.

Content Validity in Landscape Valuation: A transdisciplinary approach to valuing the landscape of the peninsula of Sorrento, Italy.

This paper addresses the representation of landscape complexity in stated preferences research. It integrates landscape ecology and landscape economics and conducts the landscape analysis in a three-dimensional space to provide ecologically meaningful quantitative landscape indicators that are used as variables for the monetary valuation of landscape in a stated preferences study. Expected heterogeneity in taste intensity across respondents is addressed with a mixed logit model in Willingness to Pay space. The results suggest that the integration of landscape ecology metrics in a stated preferences model provides useful insights for valuing landscape and landscape changes

Rural communities and wind farms: a contingent valuation investigation

Using the contingent valuation method, this study investigates the preferences of local people for a wind farm that is planned in the Province of Rome. We estimate the reductions in their bimonthly electrical bills over a period of time that respondents are willing to accept as compensation for the installation of the wind farm. Our results suggest that respondents who perceive that the wind farm generates substantial negative impacts on landscape beauty ask higher reductions than others, while respondents who believe that the wind farm produces economic benefits for local communities ask lower reductions than others. Finally, we find that the demand for compensative measures is influenced particularly by socio-economic factors such as age and education.

Unloading or not unloading? Sheep welfare implication of rest stop at control post after a 29h transport

In Europe, maximum journey time for transported sheep is set at 29. h (EC Regulation 1/2005), after which animals must be unloaded, fed and watered in control posts stopping for 24. h, as all other species, before continuing their journey. The industry considers these resting times too general, not taking into account the peculiar differences between species or age classes. Also, loading and unloading have been reported to be detrimental for the animals. Therefore, the industry pushes to reduce the times at control post and avoid unloading the animals from the truck. Since there is little information concerning the effect of resting in a stationary truck after long journeys, the present study aims to evaluate the effect of an 8. h rest stop on the truck for transported ewes compared to being unloaded for resting in a control post for the same amount of time, considering physiological and behavioural measures. Two groups of ewes were transported for 29. h, after which one was unloaded and housed in a pen (P) at the control post while the other was left inside the truck (T). After 8. h stop, a further 6. h travel was headed to the farm of origin. A third group (C) stayed at the farm as control. During the stop, standing, resting, moving and eating behaviour of all groups was recorded. Blood parameters, salivary and faecal cortisol were assessed at different stages. The behaviour of P animals during the resting period was more similar to C than to T ones, where feeding and lying behaviours were restricted by the limited space allowance on the truck. After returning to the farm of origin, both T and P animals showed different parameters' levels as compared to C. P ewes showed a mean loss weight of 2. kg not recorded in group T and showed higher signs of muscular damage compared to C group. It was concluded that, with so short resting times as 8. h, there is no clear advantages in terms of animal welfare for avoiding the unloading and loading of the animals in the control post after long journeys.