Scope effects of respondent uncertainty in contingent valuation : evidence from motorized emission reductions in the city of Nairobi, Kenya

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Authors

Ndambiri, Hilary
Mungatana, Eric Dada
Brouwer, Roy

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Taylor and Francis

Abstract

This study analyzed the scope effects of respondent uncertainty in contingent valuation (CV) by evaluating whether willingness to pay (WTP) estimates were sensitive to changes in the magnitudes of motorized emission reductions in the city of Nairobi, Kenya. The WTP estimates were elicited through the conventional payment card (PC), stochastic payment card (SPC) and the polychotomous payment card (PPC) formats. While SPC and PPC formats were used to capture respondent uncertainty, the PC format captured respondent certainty regarding the amounts individuals were WTP for emission reductions. Based on parametric and nonparametric analysis, the results show that certain (PC) respondents stated significantly larger WTP amounts for larger emission reductions than for smaller reductions. Conversely, uncertain (SPC and PPC) respondents stated smaller amounts for larger emission reductions than certain (PC) respondents. The implication is that though respondents were sensitive to the scope of motorized emission reductions, respondent uncertainty lowered their sensitivity to scope.

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Keywords

Respondent uncertainty, Scope sensitivity, Valuation formats, Motorized emission reductions, Contingent valuation (CV), Willingness to pay (WTP), Payment card (PC), Stochastic payment card (SPC), Polychotomous payment card (PPC)

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Citation

Hilary Ndambiri, Eric Mungatana & Roy Brouwer (2017) Scope effects of respondent uncertainty in contingent valuation: evidence from motorized emission reductions in the city of Nairobi, Kenya, Journal of Environmental Planning and Management, 60:1, 22-46, DOI: 10.1080/09640568.2016.1140024.