Approximating WTP and WTA for environmental goods from marginal willingness to pay functions

B-Tier
Journal: Ecological Economics
Year: 2008
Volume: 66
Issue: 2-3
Pages: 270-274

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

Willingness to pay (WTP) and willingness to accept (WTA), for a change in the quantity of an environmental good, can be represented by corresponding Hicksian welfare measures. The paper suggests a simple method of approximating WTP and WTA given the information about the marginal willingness to pay (MWTP) for it. It demonstrates that a polynomial based on the MWTP function allows to approximate the Hicksian measures (which may differ considerably) much better than consumer's surplus in quantity space.

Technical Details

RePEc Handle
repec:eee:ecolec:v:66:y:2008:i:2-3:p:270-274
Journal Field
Environment
Author Count
1
Added to Database
2026-01-25