Payment and policy consequentiality in dichotomous choice contingent valuation: Experimental design effects on self-reported perceptions

Tobias Börger, Tenaw Abate, Margrethe Aanesen and Ewa Zawojska
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Tenaw Abate: NORCE Norwegian Research Centre AS, Siva Innovasjonssenter
Margrethe Aanesen: Norwegian College of Fishery Science, UiT – Arctic University of Norway

No 2020-05, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: Although the contingent valuation literature emphasises the importance of controlling for respondents’ consequentiality perceptions, this literature has rarely accounted for the difference between payment and policy consequentiality. We examine the influence of the randomly assigned tax amount on consequentiality self-reports and their potential endogeneity using data from a single dichotomous choice survey about reducing marine plastic pollution in Norway. Results show that consequentiality perceptions are a function of the tax amount, with payment consequentiality decreasing and policy consequentiality increasing with higher tax amounts. We discuss the challenge of finding valid instruments to address potential endogeneity of consequentiality perceptions.

Keywords: Contingent valuation; single dichotomous choice; payment consequentiality; policy consequentiality; endogeneity; marine plastic pollution (search for similar items in EconPapers)
JEL-codes: Q51 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2020
New Economics Papers: this item is included in nep-env and nep-pay
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https://www.wne.uw.edu.pl/index.php/download_file/5445/ First version, 2020 (application/pdf)

Related works:
Journal Article: Payment and Policy Consequentiality in Dichotomous Choice Contingent Valuation: Experimental Design Effects on Self-Reported Perceptions (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2020-06

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