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Scope effects of respondent uncertainty in contingent valuation: evidence from motorized emission reductions in the city of Nairobi,Kenya
Authors:Hilary Ndambiri  Eric Mungatana  Roy Brouwer
Institution:1. Centre for Environmental Economics and Policy in Africa, Department of Agricultural Economics, Extension and Rural Development, University of Pretoria, Pretoria, South Africa;2. Department of Environmental Economics, Vrije Universiteit, Amsterdam, The Netherlands
Abstract:This study analyzed the scope effects of respondent uncertainty in contingent valuation (CV) by evaluating whether willingness to pay (WTP) estimates were sensitive to changes in the magnitudes of motorized emission reductions in the city of Nairobi, Kenya. The WTP estimates were elicited through the conventional payment card (PC), stochastic payment card (SPC) and the polychotomous payment card (PPC) formats. While SPC and PPC formats were used to capture respondent uncertainty, the PC format captured respondent certainty regarding the amounts individuals were WTP for emission reductions. Based on parametric and nonparametric analysis, results show that certain (PC) respondents stated significantly larger WTP amounts for larger emission reductions than for smaller reductions. Conversely, uncertain (SPC and PPC) respondents stated smaller amounts for larger emission reductions than certain (PC) respondents. The implication is that though respondents were sensitive to the scope of motorized emission reductions, respondent uncertainty lowered their sensitivity to scope.
Keywords:contingent valuation  respondent uncertainty  scope sensitivity  valuation formats  motorized emission reductions
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