Valuing nonmarket goods through contingent markets

Technical Report · Wed Sep 01 00:00:00 EDT 1982

OSTI ID:6761895

Cronin, F J

This paper estimates the extent and significance of three biases associated with contingent market analysis - strategic bias, information bias, and interviewer bias. The contingent market analyzed is that for improved water quality. The values households place on improved water quality are obtained from a random sample of almost 2000 households in the Washington, DC metropolitan reach of the Potomac River. Thus, the analysis also provides information necessary to select the optimal level of water quality. The findings indicate that the value attached to improved water quality is substantially higher than that estimated in prior studies. Findings support the hypothesis that respondents engaged in strategic behavior. Respondents who were given incentives to bias their revealed value downward were found to have mean bids significant lower than households who were given incentives to bias their revealed values upward. In addition, statistically significant evidence supporting the existence of both information and interviewer bias was found.

• Research Organization: Pacific Northwest Lab., Richland, WA (USA)
• DOE Contract Number: AC06-76RL01830
• OSTI ID: 6761895
• Report Number(s): PNL-4255; ON: DE82022544
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
MARKETING RESEARCH
WATER QUALITY
VALUES
ECONOMICS
PRICES
PUBLIC OPINION
PUBLIC UTILITIES
SOCIO-ECONOMIC FACTORS
SURVEYS
WATER SUPPLY
ENVIRONMENTAL QUALITY
INSTITUTIONAL FACTORS
290300* - Energy Planning & Policy- Environment
Health
& Safety
298000 - Energy Planning & Policy- Consumption & Utilization