Correcting for the endogeneity of pro-environment behavioral choices in contingent valuation

B-Tier
Journal: Ecological Economics
Year: 2011
Volume: 70
Issue: 8
Pages: 1435-1439

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In contingent valuation studies, observed behavioral choices often enter as independent variables in the willingness to pay function. However, these variables may be endogenously determined when the error term in the behavioral model is correlated with the error term in the willingness to pay model. We investigate the effects of correcting for the endogeneity of a variable, namely membership status in environmental organizations that proxies unobservable characteristics of the respondents. Jointly modeling the membership variable and the willingness to pay response yields an estimate for the effect of the former that contradicts previous findings but is intuitive and agrees with theoretical expectations.

Technical Details

RePEc Handle
repec:eee:ecolec:v:70:y:2011:i:8:p:1435-1439
Journal Field
Environment
Author Count
2
Added to Database
2026-01-25