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Convergent validity in contingent valuation: an application to the willingness to pay for national climate change mitigation targets in G ermany
Author(s) -
Uehleke Reinhard
Publication year - 2017
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.12148
Subject(s) - contingent valuation , referendum , willingness to pay , cognitive dissonance , economics , public economics , multinational corporation , climate change , incentive , valuation (finance) , econometrics , microeconomics , political science , accounting , finance , psychology , social psychology , ecology , politics , law , biology
This stated preferences survey determines the willingness to pay ( WTP ) for climate change mitigation policies using a representative sample of the German population. WTP is compared across three valuation question formats in a split sample design: the dichotomous choice ( DC ) referendum, the dissonance minimizing ( DM ) referendum and the two‐way payment ladder ( TWPL ). The influence of multinational cooperation on WTP is assessed by variation in the hypothetical scenarios. We demonstrate that the DM referendum and the TWPL , two question formats that induce similar response incentives, yield equal mean WTP s. Multinational cooperation did not change WTP in any of the question formats. Implications for current contingent valuation practice are discussed.