Working Paper

What Do Respondents Bring to Contingent Valuation? A Comparison of Monetary and Labor Payment Vehicles

Dec 22, 2011 | Godwin K. Vondolia, Håkan Eggert, Stale Nåvrud, Jesper Stage

This was created in partnership with Environment for Development .


With contingent valuation, both the goods being valued and the payment vehicles used to value them are mostly hypothetical. However, although numerous studies have examined the impact ofexperience with the good on willingness to pay, less attention has been given to experience with payment vehicles. This paper examines how this influences responses to a contingent valuation scenarioof maintenance for irrigation canals. Specifically, the paper uses a split-sample survey to investigate the effects of experience with monetary and labor payment vehicles on the acceptance of a contingentvaluation scenario and protest bids. Using convergent validity tests, we found that experience acquired from using both monetary and labor payment vehicles reduces the asymmetries in acceptance rates. These findings suggest that experience with payment vehicles reduces time/money response asymmetries in the contingent valuation method.