Scale factors and hypothetical referenda: A clarifying note

Carlsson, Fredrik; Johansson‐Stenman, Olof

doi:10.1016/j.jeem.2010.02.001

Cited by 7 publications

(3 citation statements)

References 16 publications

(27 reference statements)

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“…Adding interaction terms assumes that the utility functions for the two groups are different from each other, which is not consistent with economic theory as we should expect that the utility function remains the same among the two different experimental groups from random assignment. A common approach to account for the potential scale heterogeneity across different treatments (Haab, 1999;Carlsson and Johansson-Stenman, 2010;Fiebig et al, 2010;Salisbury and Feinberg, 2010) is to incorporate a scale parameter in the hypothetical treatment to allow the scale parameter to vary compared to the consequential treatment. The mathematical form of incorporating a scale parameter σ t in the hypothetical treatment is as follows:…”

Section: Presence Of Hypothetical Bias and Calibrating The Results In The Hypothetical Treatmentmentioning

confidence: 99%

Determinants of Livestock Insurance Demand: Experimental Evidence from Chinese Herders

Liu¹,

Hou²,

Li³

et al. 2020

J Agricultural Economics

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We provide the first evidence about insurance preferences among herders in pastoral regions in China. We estimate herders' preferences for alternative insurance configurations based on a hypothetical and a consequential choice experiment, aiming to minimise hypothetical bias. Our results show that herders prefer the insurance plan in general with demand for livestock insurance increasing when insurance premiums decrease or payouts increase. The hypothetical bias only influences the willingness-to-pay estimates through the cost attribute, while the marginal rates of substitution of non-cost attributes remain largely unchanged. The hypothetical treatment nearly doubles the magnitudes of willingness-to-pay estimates for some insurance attributes.

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Section: Presence Of Hypothetical Bias and Calibrating The Results In The Hypothetical Treatmentmentioning

confidence: 99%

Determinants of Livestock Insurance Demand: Experimental Evidence from Chinese Herders

Liu¹,

Hou²,

Li³

et al. 2020

J Agricultural Economics

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“…2001; Venkatachalam 2004; Veisten 2007; Tisdell et al . 2008; Carlsson and Johansson‐Stenman 2010), partly because it has been used in several high profile cases such as the assessment of damages due to the Exxon Valdez oil spill. This accident was followed by a series of critical papers in the Journal of Economic Perspectives (Diamond and Hausman 1994; Hanemann 1994; Portney 1994) and by the Blue Ribbon Panel of the US National Oceanic and Atmospheric Administration (NOAA) co‐chaired by the two Nobel Prize winners Arrow and Sallow (Arrow et al .…”

Section: Methodsmentioning

confidence: 99%

Links between Mountain Communities and Environmental Services in the Italian Alps

Notaro

Paletto

2011

Sociologia Ruralis

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The aim of this study is to evaluate the importance of mountain communities in increasing the value of environmental services. The assumption of the research is that, for historical and cultural reasons there is a greater sense of local identity and social capital in alpine communities and thus greater attention to the environment. In these communities individuals with a higher level of social capital will have a greater tendency to play a tangible role in the preservation of the environment. The study concerns the municipality of Premana in the Italian Alps. We evaluated forest and alpine pasture environmental services using the contingent valuation (CV) method. We interviewed 319 randomly selected residents (14 per cent of the population), asking them about their willingness to pay or donate work hours. Their annual mean willingness to pay was €94 and €896 in working hours, respectively. The CV results, together with other data collected through the questionnaire, demonstrate that local traditions and social capital play a key role in the multifunctional management of forests and alpine pastures. We suggest that studies such as this one on the benefits evaluation of the environmental services of mountain resources might be used for the formation and implementation of better informed policies that will affect the future of mountain communities.

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“…However, several recent 1 4 The terms scale and scope are used interchangeably in the literature to de…ne the size of the good, with scale being more common in the literature on risk reductions . In discrete choice models, scale can, unfortunately also refer to the spread of the latent variable underlying the model (Yatchew and Griliches, 1985;Alvarez and Brehm, 1995;Allison, 1999;Carlsson and Johansson-Stenman, 2010;Williams, 2009;Mood, 2010). We will only be carefully speci…c when using scope or scale in a sense di¤erent from the size of risk reduction.…”

Section: Magnitude (Scope or Scale) Of The Risk Reductionmentioning

confidence: 99%

Valuing Mortality Risk Reductions in Canada: An Updated Meta-Analysis and Policy Guidance

Ginbo

Adamowicz

Lloyd‐Smith

2023

Canadian Public Policy

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La valeur de la réduction du risque de mortalité (VRRM) constitue un élément clé de l’analyse économique des politiques publiques. La réduction du risque de mortalité représente souvent la majeure partie des avantages totaux dans les analyses des politiques de santé, de sécurité et d’environnement. Par conséquent, il est essentiel de disposer de mesures précises et actualisées de la VRRM. Nous avons réalisé une méta-analyse afin de mettre à jour l’estimation de la VRRM du Canada sur la base de 158 estimations extraites de 18 études primaires publiées entre 1989 et 2018. Nous utilisons la méthode des moindres carrés pondérés, les erreurs groupées et les procédures de régression des données de panel pour traiter différentes questions empiriques dans notre méta-analyse. Notre analyse, qui s’appuie sur des études privilégiées incluant des échantillons représentatifs, aboutit à une estimation moyenne pondérée de la VRRM de 13 millions de dollars en 2020, alors que les valeurs inférieures et supérieures de deux méthodes d’évaluation alternatives vont d’environ 10 millions de dollars à 16,5 millions de dollars. La moyenne actualisée de la VRRM est de 37% plus élevée que l’estimation actuelle de la VRRM recommandée par le Secrétariat du Conseil du Trésor du Canada. L’analyse de méta-régression montre également que les niveaux de risque de base et de réduction du risque figurent parmi les principaux déterminants des estimations de la VRRM. Nous recommandons l’application d’une estimation actualisée de la VRRM dans les évaluations de politiques, étant donné que l’utilisation de la mesure actuelle peut mener à des calculs d’avantages et de coÛts trompeurs, ainsi qu’à des recommandations de politiques potentiellement inexactes.

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Scale factors and hypothetical referenda: A clarifying note

Cited by 7 publications

References 16 publications

Determinants of Livestock Insurance Demand: Experimental Evidence from Chinese Herders

Determinants of Livestock Insurance Demand: Experimental Evidence from Chinese Herders

Links between Mountain Communities and Environmental Services in the Italian Alps

Valuing Mortality Risk Reductions in Canada: An Updated Meta-Analysis and Policy Guidance

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