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Substitution Effects in CVM Values
Author(s) -
Cummings Ronald G.,
Ganderton Philip T.,
McGuckin Thomas
Publication year - 1994
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243622
Subject(s) - substitution (logic) , willingness to pay , econometrics , set (abstract data type) , economics , statistics , actuarial science , mathematics , microeconomics , computer science , programming language
There is increasing recognition that statistical estimates of the average willingness to pay for environmental programs may be biased by the failure of respondents, or of the statistical methodology, to consider the effect of substitute programs and goods. We design and implement a CVM survey that estimates the impact of substitution effects on the willingness to pay for an environmental program. We find a statistically significant impact and suggest that the set of potential substitutes is very large.