Appropriate payment vehicles in stated preference studies in developing economies

Research output: Contribution to journalJournal articlepeer-review

Standard

Appropriate payment vehicles in stated preference studies in developing economies. / Hassan, Suziana; Olsen, Søren Bøye; Thorsen, Bo Jellesmark.

In: Environmental and Resource Economics, Vol. 71, No. 4, 2018, p. 1053–1075.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Hassan, S, Olsen, SB & Thorsen, BJ 2018, 'Appropriate payment vehicles in stated preference studies in developing economies', Environmental and Resource Economics, vol. 71, no. 4, pp. 1053–1075. https://doi.org/10.1007/s10640-017-0196-6

APA

Hassan, S., Olsen, S. B., & Thorsen, B. J. (2018). Appropriate payment vehicles in stated preference studies in developing economies. Environmental and Resource Economics, 71(4), 1053–1075. https://doi.org/10.1007/s10640-017-0196-6

Vancouver

Hassan S, Olsen SB, Thorsen BJ. Appropriate payment vehicles in stated preference studies in developing economies. Environmental and Resource Economics. 2018;71(4):1053–1075. https://doi.org/10.1007/s10640-017-0196-6

Author

Hassan, Suziana ; Olsen, Søren Bøye ; Thorsen, Bo Jellesmark. / Appropriate payment vehicles in stated preference studies in developing economies. In: Environmental and Resource Economics. 2018 ; Vol. 71, No. 4. pp. 1053–1075.

Bibtex

@article{4b9fae4babdc450bbcf3be3b7a71c50c,
title = "Appropriate payment vehicles in stated preference studies in developing economies",
abstract = "Selecting appropriate payment vehicles is critical for the perceived consequentiality and incentive compatibility of stated preferences surveys. We analyze the performance of three different payment vehicles in a Malaysian case of valuing wetland conservation. Two are well-known: voluntary donations and income taxes. The third is new: reductions in government subsidies for daily consumer goods. Using donations is common, but this payment vehicle is prone to issues of free-riding. An income tax usually has favorable properties and is commonly used in environmental valuation. However, in Malaysia as well as in many other low- to middle-income economies, large proportions of people do not pay income taxes, putting the validity of this payment vehicle into question. Instead, citizens in Malaysia and many other countries benefit from subsidies for a range of consumer goods. We find that price sensitivity is higher and the unexplained variance smaller when using subsidies rather than donations or income taxes. Importantly, this approach translates into completely different conclusions concerning policy advice. Our results suggest that in developing countries, using reduced subsidies as a payment vehicle may have favorable properties in terms of improved payment consequentiality compared to alternative payment vehicles, thus enhancing the external validity of stated preference surveys.",
keywords = "Developing countries, Discrete choice experiment, Incentive compatibility, Payment consequentiality, Random parameter logit model, Wetland conservation",
author = "Suziana Hassan and Olsen, {S{\o}ren B{\o}ye} and Thorsen, {Bo Jellesmark}",
year = "2018",
doi = "10.1007/s10640-017-0196-6",
language = "English",
volume = "71",
pages = "1053–1075",
journal = "Environmental and Resource Economics",
issn = "0924-6460",
publisher = "Springer",
number = "4",

}

RIS

TY - JOUR

T1 - Appropriate payment vehicles in stated preference studies in developing economies

AU - Hassan, Suziana

AU - Olsen, Søren Bøye

AU - Thorsen, Bo Jellesmark

PY - 2018

Y1 - 2018

N2 - Selecting appropriate payment vehicles is critical for the perceived consequentiality and incentive compatibility of stated preferences surveys. We analyze the performance of three different payment vehicles in a Malaysian case of valuing wetland conservation. Two are well-known: voluntary donations and income taxes. The third is new: reductions in government subsidies for daily consumer goods. Using donations is common, but this payment vehicle is prone to issues of free-riding. An income tax usually has favorable properties and is commonly used in environmental valuation. However, in Malaysia as well as in many other low- to middle-income economies, large proportions of people do not pay income taxes, putting the validity of this payment vehicle into question. Instead, citizens in Malaysia and many other countries benefit from subsidies for a range of consumer goods. We find that price sensitivity is higher and the unexplained variance smaller when using subsidies rather than donations or income taxes. Importantly, this approach translates into completely different conclusions concerning policy advice. Our results suggest that in developing countries, using reduced subsidies as a payment vehicle may have favorable properties in terms of improved payment consequentiality compared to alternative payment vehicles, thus enhancing the external validity of stated preference surveys.

AB - Selecting appropriate payment vehicles is critical for the perceived consequentiality and incentive compatibility of stated preferences surveys. We analyze the performance of three different payment vehicles in a Malaysian case of valuing wetland conservation. Two are well-known: voluntary donations and income taxes. The third is new: reductions in government subsidies for daily consumer goods. Using donations is common, but this payment vehicle is prone to issues of free-riding. An income tax usually has favorable properties and is commonly used in environmental valuation. However, in Malaysia as well as in many other low- to middle-income economies, large proportions of people do not pay income taxes, putting the validity of this payment vehicle into question. Instead, citizens in Malaysia and many other countries benefit from subsidies for a range of consumer goods. We find that price sensitivity is higher and the unexplained variance smaller when using subsidies rather than donations or income taxes. Importantly, this approach translates into completely different conclusions concerning policy advice. Our results suggest that in developing countries, using reduced subsidies as a payment vehicle may have favorable properties in terms of improved payment consequentiality compared to alternative payment vehicles, thus enhancing the external validity of stated preference surveys.

KW - Developing countries

KW - Discrete choice experiment

KW - Incentive compatibility

KW - Payment consequentiality

KW - Random parameter logit model

KW - Wetland conservation

U2 - 10.1007/s10640-017-0196-6

DO - 10.1007/s10640-017-0196-6

M3 - Journal article

AN - SCOPUS:85037747830

VL - 71

SP - 1053

EP - 1075

JO - Environmental and Resource Economics

JF - Environmental and Resource Economics

SN - 0924-6460

IS - 4

ER -

ID: 187350684