The Valuation of Ecological Goods and Services:

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The Valuation of Ecological Goods and Services
A Field Experiment Using the Contingent
Valuation Survey Method Matthew A.
Wilsona, Thomas A. Heberleina, Richard C. Bishopb
and Nora C. Schaeffera aUniversity of
Wisconsin-Madison Departments of Sociology and
Rural Sociology bUniversity of Wisconsin-Madison
Department of Applied and Agricultural Economics
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SCOPE SENSITIVITY Perhaps the most important
internal argument against the reliability of the
CV approach is the observation of SCOPE
INSENSITIVITY. Different, but similar, samples
of respondents are asked about their willingness
to pay (WTP) for the Prevention of environmental
damage scenarios that are IDENTICAL EXCEPT FOR
THEIR SCALE Different numbers of seabirds
saved, different numbers of forest tracts
preserved from logging, etc. Yet it is reported
that average WTP is often substantial for the
smallest scenario presented but is then
Substantially INDEPENDENT of the size of the
damage averted, rising only slightly if at all
for large Changes in the size of the damage.
NOAA Blue Ribbon
Panel (1993) THE SCOPE SENSITIVITY TEST A
scope test requires that peoples choices
consistently lead to larger total willingness to
pay (WTP) for larger amounts of the same
environmental object and smaller WTP for the
smaller amounts
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Attitude-Behavior Model of Scope Sensitivity
Environmental Values
Attitudes And Values
Attitude Towards The Good
WTP Whole
Affective Strength
WTP Part

• Evaluate Extremity
• Satisfaction Extremity

Strength Variables
Cognitive Strength

• Knowledge
• Think About

Direct Experience

• Recreational Experiences

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Nested Environmental Goods
Categorical Nesting
Quantitative Nesting
Wolves
Water Quality

• Whole

• Whole

Maintain Water Quality in All the Lakes of Vilas
and Oneida Counties
800 Wolves in Northern Wisconsin

• Part

• Part

• Part

Maintain Water Quality in the Minocqua Chain of
Lakes
300 Wolves in Northern Wisconsin
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SURVEY METHODS
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Mixed-Mode Mail and Telephone Survey Design
Mail Survey


Telephone 1
Telephone 2

• Advance Letter
• Mail Questionnaire
• Reminder Telephone
• Mail Questionnaire
• Mail Questionnaire

2 weeks
1 week

• Wolf (Part)
• Water Quality (Whole)

• Wolf (Whole)
• Water Quality (Part)

60 Response Rate N876
46 Response Rate N678
42 Response Rate N618
Random-Order CATI Sequence
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Water Quality Telephone Administered Scenario
Payment Vehicle
WTP Elicitation
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Environmental Attitudes and Values Water and
Wolves
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Strongly Ecocentric Values
Strongly Anthropocentric Values
Ambivalent
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Affect Towards Water and Wolves
Wilcoxon Ranks Test Z -12.785 P lt .000
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Cognition Towards Water and Wolves
Wilcoxon Ranks test Z - 15.803 P lt .000
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Affect Towards Water and Wolves--Part and Whole
Wilcoxon Rank Test Z -15.340 P lt .000
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Cognition Towards Water and Wolves-- Part and
Whole
Wilcoxon Rank Test Z -13.944 P lt .000
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Willingness To Pay and Binomial Tests of Scope
Sensitivity
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T -1.911 Pgt.05
T 3.810 Plt.000
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Dichotomous and Polytomous Scope Sensitivity
Frequencies
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Alternative Theoretical Models of Scope
Sensitivity
DICHOTOMOUS SCOPE MODEL
SCOPE WTPP lt WTPW
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Binomial Scope Frequencies
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Multinomial Scope Frequencies
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Predicting Scope Sensitivity Dichotomous
Logistic Regression
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Binomial Logistic Model Specification
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Conclusions
Survey Respondents Environmental Attitudes
Predict Scope Sensitivity Property owners
environmental Attitudes and attitude strength
towards wolves and Water quality are causally
related to Scope Sensitivity in a theoretically
meaningful fashion. Respondents Affect
(emotion) and Cognition (thoughts and knowledge)
play different causal roles in predicting scope
for wolves and water quality
Which suggests that
Survey Questionnaires can be used to estimate
real dollar estimates for ecological goods and
services. BUT, careful attention should be
given to the type of good under consideration
and their affective or cognitive nature.
For goods like water quality it appears that
valid economic values are readily attainable
because of their strong relationship to thinking
and knowledge (I.e., instrumental tradeoffs),
while for others like Wolves, strong emotions
may result in uncertain value estimates.
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