Some empirical evidence on embedding effects in contingent valuation of forest protection

Article Abstract:

The level at which the magnitude and occurrence of valuation embedding effects are lowered by enhancements in the design of the Contingent Valuation Method (CVM) is tested, together with the effect of embedding on a geographically distributed public good. Embedding effects are discovered in just one level when dichotomous and open-ended choice CVM is applied for forest protection in just two areas of southeast Australia and the whole of the region. The fall in value was found to be far lower that Knetsch and Kahneman's findings when embedding effects occur.

Australia, Environmental aspects, Forest conservation, Forest protection

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Semi-nonparametric distribution-free dichotomous choice contingent valuation

Article Abstract:

A semi-nonparametric distribution-free estimator (SNPDF) for binary discrete response data is applied to the estimation of a dichotomous valuation model. The SNPDF estimator is utilized to assess compensating variation for reduction in risk of exposure to hazardous waste and proves similar but more complicated than the logit model. Results indicate that the SNPDF is a coherent method in numerical estimation of welfare measures and can be applied using binary logit or probit estimation programs.

Research and Development in the Physical, Engineering, and Life Sciences, Statistics, Econometrics & Model Building, Econometrics, Valuation, Nonparametric statistics, Statistics (Mathematics), Business models, Logits

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Embedding in market demand systems

Article Abstract:

The level of embedding is established as one of the circumstances to which economic values react. An estimated demand system for marketed merchandise is used to model an embedding framework for rises and falls in the price of these goods. Results indicate that embedding is an average economic occurrence. Welfare measures for policy or private goods will likely be responsive to the level of embedding.

Analysis, Mathematical models, Consumer goods

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