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Comparing Contingent Valuation, Conjoint Analysis and Decision Panels: An Application to the Valuation of Reduced Damages from Air Pollution in Norway

  • Bente Halvorsen
  • Jon Strand
  • Kjartan Sælensminde
  • Fred Wenstøp
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 465)

Abstract

We discuss three stated-preference approaches to eliciting willingness to pay (WTP) for environmental goods, namely open-ended contingent valuation (OE-CVM), conjoint analysis (CA) and multi-attribute utility theory applied to decision panels of experts (EDP). We point out that each approach has advantages and disadvantages relative to the others, and that the relation between WTP estimates from the approaches cannot be predicted on prior arguments alone. The three approaches are applied in three different surveys, where we seek valuation of specific damages due to air pollution in Norway. In all cases studied, OE-CVM clearly yields the lowest average WTP estimates, while those from CA and EDP are similar. Possible explanations are offered, based on the principal differences between the approaches and on particular features of the three surveys.

Keywords

Contingent Valuation Conjoint Analysis Decision Panels Environmental Goods Stated Preference 

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Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • Bente Halvorsen
    • 1
  • Jon Strand
    • 2
  • Kjartan Sælensminde
    • 3
  • Fred Wenstøp
    • 4
  1. 1.Central Bureau of StatisticsOsloNorway
  2. 2.Department of EconomicsUniversity of OsloOsloNorway
  3. 3.Institute of Transport EconomicsOsloNorway
  4. 4.Norwegian School of ManagementSandvikaNorway

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