Using Contingent Valuation in the Design of Payments for Environmental Services Mechanisms: A Review and Assessment

Whittington, Dale; Pagiola, Stefano

doi:10.1093/wbro/lks004

Cited by 70 publications

(53 citation statements)

References 41 publications

(27 reference statements)

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“…This is also a preferred approach to just describing a hypothetical market (see Whittington and Pagiola, 2012). In this regard, the two stages were put together and the question asked for the double bound dichotomous choice game was: "Suppose you are supplied with this innovative/modernized borehole system as orally and pictorially described, how much would you be willing to pay to fetch a 34cm bucket of water from this improved system?…”

Section: Hypothetical Market Scenariomentioning

confidence: 99%

Demand for domestic water from an innovative borehole system in rural Ghana: stated and revealed preference approaches

Amoah

2016

Water Policy

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Section: Hypothetical Market Scenariomentioning

confidence: 99%

Demand for domestic water from an innovative borehole system in rural Ghana: stated and revealed preference approaches

Amoah

2016

Water Policy

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“…Our results show that the use of other quantiles framed in the supermajority concept (Whittington and Pagiola, 2012) provides a reasonable interpretation of the technical nonmarket valuation studies in the PES area. Using a CV application to value ecosystem services provided by the subAndean humid forest in the upper and middle Piraí River basin in Bolivia, our quantile regression analysis allowed us to estimate WTP values that are more informative in terms of the social and political feasibility of a PES scheme.…”

Section: Discussionmentioning

confidence: 54%

A Bayesian quantile binary regression approach to estimate payments for environmental services

2016

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ABSTRACT. Stated preference approaches, such as contingent valuation, focus mainly on the estimation of the mean or median willingness to pay (WTP) for an environmental good. Nevertheless, these two welfare measures may not be appropriate when there are social and political concerns associated with implementing a payment for environmental services (PES) scheme. In this paper the authors used a Bayesian estimation approach to estimate a quantile binary regression and the WTP distribution in the context of a contingent valuation PES application. Our results show that the use of other quantiles framed in the supermajority concept provides a reasonable interpretation of the technical nonmarket valuation studies in the PES area. We found that the values of the mean WTP are 10-37 times higher than the value that would support a supermajority of 70 per cent of the population.

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“…Contingent valuation (CV) approaches allow for the integrated nature of household decision making in the context of both missing markets and integrated production-consumption decision-making [26]. Further, CV approaches can capture heterogeneity in production, consumption, and perceptions of the losses associated with irreversibility [26,27].…”

Section: Approaches To Measuring Costs Of Avoided Deforestationmentioning

confidence: 99%

“…Although basic economic theory suggests that the amounts should be very similar, empirical studies show that WTA tends to be considerably higher than WTP for the same loss. A substantial literature [26][27][28][29] has investigated possible reasons for these differences. In our application, we elicit WTA measures because of the nature of REDD+.…”

Section: Approaches To Measuring Costs Of Avoided Deforestationmentioning

confidence: 99%

Costs of Lost opportunities: Applying Non-Market Valuation Techniques to Potential REDD+ Participants in Cameroon

Thompson

Swallow

Luckert

2017

Forests

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Reduced Emissions from Deforestation and Forest Degradation (REDD+) has been systematically advanced within the UN Framework Convention on Climate Change (UNFCCC). However, implementing REDD+ in a populated landscape requires information on local costs and acceptability of changed practices. To supply such information, many studies have adopted approaches that explore the opportunity cost of maintaining land as forest rather than converting it to agricultural uses. These approaches typically assume that the costs to the smallholder are borne exclusively through the loss or gain of the production values associated with specific categories of land use. However, evaluating the value of land to smallholders in incomplete and messy institutional and economic contexts entails other considerations, such as varying portfolios of land holdings, tenure arrangements, restricted access to capital, and unreliable food markets. We suggest that contingent valuation (CV) methods may provide a more complete reflection of the viability of REDD+ in multiple-use landscapes than do opportunity cost approaches. The CV approach eliminates the need to assume a homogenous smallholder, and instead assumes heterogeneity around social, economic and institutional contexts. We apply this approach in a southern rural Cameroonian context, through the lens of a hypothetical REDD+ contract. Our findings suggest local costs of REDD+ contracts to be higher and much more variable than opportunity cost estimates.

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Using Contingent Valuation in the Design of Payments for Environmental Services Mechanisms: A Review and Assessment

Cited by 70 publications

References 41 publications

Demand for domestic water from an innovative borehole system in rural Ghana: stated and revealed preference approaches

Demand for domestic water from an innovative borehole system in rural Ghana: stated and revealed preference approaches

A Bayesian quantile binary regression approach to estimate payments for environmental services

Costs of Lost opportunities: Applying Non-Market Valuation Techniques to Potential REDD+ Participants in Cameroon

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