Scope sensitivity tests for preference robustness

An empirical examination of economic expectations regarding the economic valuation of policies for reducing acidity in remote mountain lakes

Ian J. Bateman, Philip Cooper, Stavros Georgiou, Stale Navrud, Greg L. Poe, Richard Ready, Pere Riera, Mandy Ryan, Christian A. Vossler

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The paper introduces the reader to the contingent valuation method for monetary valuation of individuals' preferences regarding changes to environmental goods. Approaches to the validity testing of results from such studies are discussed. These focus upon whether findings conform to prior expectations, in particular regarding whether valuations are sensitive to the size (or 'scope) of change being considered and whether they are invariant to changes in study design which are irrelevant from the perspective of economic theory. We apply such tests to a large sample study of two possible changes to the acidity levels of remote mountain lakes. Results suggest that robust values can be observed for a policy which would prevent further acidification of such lakes, but that values associated with measures to reduce acidity below present levels fail validity tests. Interestingly, values associated with preventing further acidification of lakes appear to be significantly lower for individuals who live further away from such lakes and there may even be a national component to this distance decay suggesting that those who live in the same country as the lakes in question hold higher values for their improvement.

Original languageEnglish (US)
Pages (from-to)1-88
Number of pages88
JournalWorking Paper - Centre for Social and Economic Research on the Global Environment
Issue number1
StatePublished - 2004

Fingerprint

valuation
Acidity
Lakes
acidity
Economics
examination
mountain
lake
economics
Acidification
Values
acidification
economic theory
contingent valuation
present
test
policy
Testing

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Earth and Planetary Sciences(all)
  • Global and Planetary Change
  • Management, Monitoring, Policy and Law
  • Aerospace Engineering

Cite this

Bateman, Ian J. ; Cooper, Philip ; Georgiou, Stavros ; Navrud, Stale ; Poe, Greg L. ; Ready, Richard ; Riera, Pere ; Ryan, Mandy ; Vossler, Christian A. / Scope sensitivity tests for preference robustness : An empirical examination of economic expectations regarding the economic valuation of policies for reducing acidity in remote mountain lakes. In: Working Paper - Centre for Social and Economic Research on the Global Environment. 2004 ; No. 1. pp. 1-88.
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Scope sensitivity tests for preference robustness : An empirical examination of economic expectations regarding the economic valuation of policies for reducing acidity in remote mountain lakes. / Bateman, Ian J.; Cooper, Philip; Georgiou, Stavros; Navrud, Stale; Poe, Greg L.; Ready, Richard; Riera, Pere; Ryan, Mandy; Vossler, Christian A.

In: Working Paper - Centre for Social and Economic Research on the Global Environment, No. 1, 2004, p. 1-88.

Research output: Contribution to journalArticle

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AU - Georgiou, Stavros

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AU - Poe, Greg L.

AU - Ready, Richard

AU - Riera, Pere

AU - Ryan, Mandy

AU - Vossler, Christian A.

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