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Environmental Management & Development

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Environmental Management and Development Occasional Papers are published by the Environmental Management and Development Programme, Crawford School of Economics and Government, Australian National University, Canberra 0200 Australia. These papers present peer-reviewed work in progress of re...

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  • 1 augustus 2024
  • 43
  • 2024/2025
  • Tentamen (uitwerkingen)
  • Vragen en antwoorden

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  • environmental management development
  • environmental management and development occasiona
  • a necessary condition is that the agency can credi

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A #14 2010 Environmental Management & Development comparison of responses to single and repeated discrete choice questions Ben J. McNair, Jeff Bennett and David A. Hensher Crawford School of Economics and Government THE AUSTRALIAN NATIONAL UNIVERSITY http://www.crawford.anu.edu.au Crawford School of Economics and Government OCCASIONAL PAPERS  TTHE AUSTRALIAN NATIONAL UNIVERSITY © Ben J. McNair, Jeff Bennett and David A. Hensher 2010 Environmental Management and Development Occasional Papers are published by the Environmental Management and Develo pment Programme, Crawford School of Economics and Government, Australian National University, Canberra 0200 Australia. These papers present peer-reviewed work in progress of r esearch projects being undertaken within the Environmental Management and D evelopment Programme by staff, students and visiting fellows. The opinions expressed in these papers are those of the authors and do not necessarily represent those of the Crawford School of Ec onomics and Government at The Australian National University. ISSN 1447-6975 Acknowledgements The authors thank Gabriela Scheufele for valuable discussi ons, ActewAGL Distribution, in particular David Graham, for allowin g the publication of the results, Andrew Collins and Yang Lan of the Institute o f Transport and Logistics Studies (ITLS) for their survey programming work, John Rose of ITLS for advice on the design of the choice experiment, and Rodney Lat imer, Kim Sullivan and Daniel Prior of ORIMA Research for survey pre-testing a nd implementation. Funding for this research is from ARC Industry Linkage Gr ant LP0669754. A comparison of responses to single and repeated di screte choice questions Ben J. McNaira,*, Jeff Bennetta and David A. Hensherb a Crawford School of Economics and Government, The Australian National University, Canberra ACT 0200, Australia. b Institute of Transport and Logistics Studies, Faculty of Economics and Busi ness, The University of Sydney, NSW 2006, Australia. * Corresponding author. Email address: ben.mcnair@anu.edu.au Abstract According to neoclassical economic theory, a stated preference elic itation format comprising a single binary choice between the status quo and one alternative is incentive compatible under certain conditions. Formats typically used in choice experiments comprising a sequence of discrete choice questions do not hold this propert y. In this paper, the effect on stated preferences of expanding the number of binary c hoice tasks per respondent from one to four is tested using a split sample treatment in an attribute-based survey relating to the undergrounding of overhead electricity a nd telecommunications wires. We find evidence to suggest that presenting multiple choice tasks per respondent decreases estimates of expected willingness to pay. Pr eferences stated in the first of a sequence of choice tasks are not significantly differ ent from those stated in the incentive compatible single binary choice task, but, in subsequent choice tasks, responses are influenced by cost levels observed in past questions. Three behavioural explanations can be advanced – weak strategic misrepresentation, ref erence point revision and cost-driven value learning. The evidence is contrary to the standard assumption of truthful response with stable preferences. Keywords Choice experiment; willingness-to-pay; incentive compatibility; order effects; undergrounding JEL codes L94; Q51

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