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Article
Publication date: 5 September 2016

Jia Wang and Jiaoju Ge

The purpose of this paper is to theoretically using two new models to analyze the effect of respondents’ uncertainty about their stated willingness to pay (WTP) on welfare…

Abstract

Purpose

The purpose of this paper is to theoretically using two new models to analyze the effect of respondents’ uncertainty about their stated willingness to pay (WTP) on welfare estimates in the contingent valuation method (CVM) theoretically using two new models, and empirically to reveal consumers’ WTP to improve drinking water supply safety (WSS) in China.

Design/methodology/approach

In this paper, two alternative preference uncertainty treatment approaches are proposed to estimate consumers’ WTP theoretically and they are applied to China’s WSS improvement program from a payment card method, which depends on how consumers’ certainty level about their valuation is. Furthermore, four regression models are presented to investigate the determinants of consumers’ WTP.

Findings

Theoretically, the alternative approaches that proposed in this research can remove overestimation bias from traditional CVM method but with lower estimation efficiency. In addition, the empirical results of the uncertainty adjusted models show that the expected WTP to improve drinking WSS is from 0.55 to 0.56 Renminbi yuan/ton, which are lower than the estimates from the conventional standard CVM models. Consumers’ preferences for their concerns about WSS, attitudes toward WSS improvement programs, trusts in implement authorities and their knowledge of WSS have significant effects on the WTP for improving drinking WSS and on respondents’ uncertainty too.

Originality/value

Theoretically to the authors’ knowledge, it is the first attempt to compare alternative approaches to treat respondent uncertainty using numerical certainty scale combined with payment card format valuation questions in CVM. Empirically it is the first study at this large scale that investigates consumers’ WTP for improving drinking WSS incorporating with respondent uncertainty in China. In addition, to assess consumer preferences for improved drinking water safety and the sources of uncertainty, information on consumers’ attitudes toward WSS are considered at the first time.

Article
Publication date: 29 April 2014

Chin-Huang Huang and Chun-Hung Lee

The Fresh Milk Logo certifies that dairy product sold in Taiwan really is fresh milk. However, the logo represents only a moral pledge by the manufacturer. No method

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Abstract

Purpose

The Fresh Milk Logo certifies that dairy product sold in Taiwan really is fresh milk. However, the logo represents only a moral pledge by the manufacturer. No method exists for inspecting whether products are fresh milk or reconstituted milk, and the label does not represent a commitment to the same level of quality and consumer health protection as found in organic foods. The purpose of this paper is to analyze consumer perceptions of organic certified agricultural standards (CAS) and estimates consumer willingness to pay (WTP) a premium should the Fresh Milk Logo be transformed into an organic CAS certified label.

Design/methodology/approach

Exploratory factor analysis is adopted to extract the main determinants of respondent perceptions and preferences. Additionally, the double-bounded dichotomous choice of the contingent valuation method (CVM) and survival function is used to measure consumer WTP a premium for organic fresh milk.

Findings

Consumer consumption preferences for buying fresh milk extracted four main factorial dimensions: Fresh Milk Logo, price/promotion, organic, and product/brand. Respondents are willing to pay US$21.95 extra per year to buy organic CAS milk and the factors affecting WTP are “Fresh Milk Logo” and “organic”.

Research limitations/implications

The problems of the CVM include hypothetical and starting point for price bidding. The double-bounded dichotomous choice contingent valuation model and pre-testing can reduce the biases. The survival function is more flexible, yields more information and permits assumptions regarding parametric distributions without additional costs. The collaboration of survival function with the double-bounded method produces a reliable result that incorporates fewer statistical errors.

Practical implications

Consumers are willing to pay a premium for fresh milk with an organic CAS label that certifies its good quality and safety.

Social implications

Marketing managers can use the study findings to develop effective marketing strategies and refine advertising campaigns to promote organic fresh milk to attract more consumers.

Originality/value

Organic food labels certify food safety, and are associated with the trend toward increasing awareness of environmental and health issues. Perception of organic food labels are introduced into double-bounded dichotomous choice CVM to estimate consumers’ WTP, an approach which has successfully dominated traditional methods, using Likert scale-type measurement.

Details

China Agricultural Economic Review, vol. 6 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 3 August 2015

Seungmin Nam, Sae-eun Park and Hong-Chul Shin

The purpose of this paper is to estimate an individual’s probability of preservation of the night view of Han-River bridge tax using the contingent valuation method (CVM

Abstract

Purpose

The purpose of this paper is to estimate an individual’s probability of preservation of the night view of Han-River bridge tax using the contingent valuation method (CVM) and to present the effects of 4Es on experience economy theory.

Design/methodology/approach

The on-site survey was conducted in the 11 district Han-River parks: Gwangnaru, Jamsil, Ttukseom, Jamwon, Banpo, Yeechon, Yeouido, Mangwon, Nanji, Ganseo and Yanghwa district, including 24 bridges such as Banpo, Olympic bridge during 8-9 pm around the lighting and 9-10 pm peak time of lighting.

Findings

Truncated mean willingness-to-pay indicates that the economic value of the night view of Han-River bridge is 49,575 won (about USA $50) per household, which implies the significance of the preservation value of the night view.

Research limitations/implications

This study sets a hypothetical market, and there are limitations on hypothetical bias of the dichotomous choice CVM. For the future study, a survey with a specific real payment vehicle in an attempt to reduce hypothetical bias can be a tool for the prevention of the overestimation.

Practical implications

Through the study, Seoul city has to invest aggressively on the night view landscape business of Han-River bridge, which can become a landmark and has lots of attraction for tourists. As this study’s core aim was to justify the economic value of the night view of the Han-River bridges, the estimated amount strongly supports the lighting business of the Han-River bridge.

Originality/value

The results of this research may help policy-makers of Han-River to establish practical decisions as to whether improving and preserving the Han-River’s night view lighting business are worth the value.

Details

International Journal of Culture, Tourism and Hospitality Research, vol. 9 no. 3
Type: Research Article
ISSN: 1750-6182

Keywords

Article
Publication date: 3 June 2020

Krystian Zawadzki

In the study, an attempt was made to estimate the social benefits resulting from three non-mega sporting events organized in Ergo Arena located on the border of two cities…

Abstract

Purpose

In the study, an attempt was made to estimate the social benefits resulting from three non-mega sporting events organized in Ergo Arena located on the border of two cities in Poland. By attributing a value to intangible social benefits, the intangible effect was determined and compared to the expenditure incurred in the construction of Ergo Arena Hall.

Design/methodology/approach

In order to value social intangible effects of three non-mega sporting events the Contingent Valuation Method was applied. Each time, the Contingent Valuation Method study covered the area of the two cities: Gdańsk and Sopot and was conducted on a sample of 500 people – 250 per city. The mean values of Willingness-to-Pay were used in order to obtain aggregate values of intangible benefits. Finally, the aggregate results were compared to expenditure incurred in connection with the construction of Ergo Arena Hall.

Findings

It appeared that intangible effects were eagerly valued by the residents of Gdańsk and Sopot. The aggregated value of all three sporting events was estimated at PLN 8.8 million. The obtained results question the equal share of both cities in financing but confirm that under certain circumstances, hosting non-mega sporting events may justify the use of public funds. In the case of the two cities, the reasonable reason for the employment of public means is the size of Gdańsk compared to Sopot.

Originality/value

The paper fulfils the research gap which arises regarding Willingness-to-Pay in estimating the intangible social effects of non-mega sporting events and considering these effects in the net effect valuation. The findings have implications for policy makers since they show to what extent it may be justified to use public means in order to host non-mega sporting events.

Details

International Journal of Event and Festival Management, vol. 11 no. 3
Type: Research Article
ISSN: 1758-2954

Keywords

Article
Publication date: 27 March 2007

Hye‐Kyung Chung

This study aims to present a new approach to measuring the economic value of special libraries, including certain time‐saving effects that the contingent valuation method

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Abstract

Purpose

This study aims to present a new approach to measuring the economic value of special libraries, including certain time‐saving effects that the contingent valuation method application cannot exclusively prove.

Design/methodology/approach

A cost‐benefit analysis is used as a tool to determine whether the benefits of special libraries outweigh the cost incurred in providing the services. The benefits of such libraries are based on estimates of how much the user is willing to pay for the service, as well as the cost of time saved as a result of his contact with library services. A case study was conducted to show how special libraries could apply the proposed model to their library setting to measure the value of the library's services.

Findings

According to the case study involving the KDI School Library, the economic value of its library services measured in terms of a B/C ratio was 1.97, serving as strong justification for the library's existence.

Originality/value

This study is more specific and accurate than previous studies in that it enables an individual analysis for each service special libraries offer and focuses on the types of benefit derived. It is hoped that the model will help analyze the strength of each library service as well as the total economic value of the library.

Details

The Bottom Line, vol. 20 no. 1
Type: Research Article
ISSN: 0888-045X

Keywords

Article
Publication date: 1 January 1999

Joshua S. Gans

The contingent valuation method (CVM) for assessing non‐use values has undergone significant criticism recently on various fronts. In this paper, the author analyses the…

Abstract

The contingent valuation method (CVM) for assessing non‐use values has undergone significant criticism recently on various fronts. In this paper, the author analyses the notion that imposing reasonable bounds on the rationality of agents might undermine the basis for any method that attempts to elicit non‐use values on environmental goods from individuals, including CVM. The model of bounded rationality applied is that of Gans (1996). On the basis of that model, it is argued that in complex and unfamiliar situations one would not expect individuals to be able to express their true preferences. Following this line, the author discusses the possibilities for using experts for valuation as well as for providing information for decision making on the preservation of public resources.

Details

International Journal of Social Economics, vol. 26 no. 1/2/3
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 9 August 2013

Esther H.K. Yung, Philip L.H. Yu and Edwin H.W. Chan

The purpose of this paper is to identify a list of underlying considerations in choosing the appropriate economic valuation method for use in the conservation of historic…

Abstract

Purpose

The purpose of this paper is to identify a list of underlying considerations in choosing the appropriate economic valuation method for use in the conservation of historic property and to highlight the importance of non‐use values in making decisions.

Design/methodology/approach

A thorough literature review is conducted to provide a concise overview of the most commonly used economic valuation methods in the cultural heritage field. The stated and revealed preference methods were analyzed. Their theoretical basis, methodology and analysis procedures are described. By highlighting the strengths and limitations of these evaluation methods for use in the different context, a list of underlying factors for choosing the appropriate method for different decision‐making problems in managing historic properties were deduced.

Findings

The underlying considerations in choosing the appropriate evaluation method in historic properties include “Matching the objectives ”, “Evaluate use or non‐use values ”, “Scope of evaluation ”, “availability of data”, “Time and cost of conducting the methods”, “Methodological procedures”, “Analysis of the methods”, and “Local contexts where the techniques will be applied”.

Originality/value

The long‐term significance of this study is to enhance a holistic understanding of the quantitative approach to evaluate the value of historic properties. This enhanced understanding should help to inform the decision‐makings on comparing and prioritizing the management of heritage facilities when confronted with limited resources.

Details

Property Management, vol. 31 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 16 November 2015

Dousa Daneshdoust

Considering built heritage as public goods demands a lot of planning as usually historic sites and monuments are administrated by governments. The purpose of this paper is…

Abstract

Purpose

Considering built heritage as public goods demands a lot of planning as usually historic sites and monuments are administrated by governments. The purpose of this paper is to propose and apply contingent valuation method (CVM) for the value assessment of historic sites as public goods.

Design/methodology/approach

The aim of this research is to apply CVM to assess the total value as well as sub values, use and non-use values of a historic site. Ferdowsi mausoleum in Tus historic area near Mashhad city in Iran has been chosen as a case study.

Findings

The paper indicates that historic sites meet all the criteria for being considered as public goods and obtained high amount of willingness to pay proves the significance of Ferdowsi mausoleum to the people of Mashhad city and its tourists. Non-use values comprise the highest share of value and cultural identity has the highest value among non-use values.

Practical implications

It is recommended that CVM be applied in cost-benefit analysis of historic sites. This is useful in the process of prioritization of restoration and maintenance of historic sites and could be used by policy makers in policy crafting processes.

Originality/value

CVM has been used for the first time for a mausoleum and for a site in Iran and sub values have been measured for the first time for a historic site.

Details

Journal of Cultural Heritage Management and Sustainable Development, vol. 5 no. 3
Type: Research Article
ISSN: 2044-1266

Keywords

Article
Publication date: 3 April 2009

Edwin Chan, Chung Yim Yiu, Andrew Baldwin and Grace Lee

After the outbreak of the disease of “Severe Acute Respiratory Syndrome (SARS)” in Asia in 2003, a healthy living environment is a major concern. The purpose of this paper…

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Abstract

Purpose

After the outbreak of the disease of “Severe Acute Respiratory Syndrome (SARS)” in Asia in 2003, a healthy living environment is a major concern. The purpose of this paper is to study the value of healthy building parameters by the Contingent Valuation Method (CVM), which gives a direct appraisal of the occupants' value.

Design/methodology/approach

Healthy building parameters were identified in previous studies. Questionnaires are distributed to residents of a large‐scale high‐rise private housing estate in Hong Kong to find out their willingness to pay (WTP) for individual healthy building parameters.

Findings

The results suggest that most residents are willing to pay for healthy building parameters, each with a different value.

Research limitations/implications

The paper is limited to studying the eight identified building parameters for healthy buildings. The sample of the study is confined in a private housing estate only and all the occupants are middle class citizens of Hong Kong. The results of the study can be further validated by carrying out similar research with the support of the government or quasi‐government bodies to cover a larger sample size for a better return rate.

Practical implications

The findings have practical implications on cost‐and‐benefit analysis of housing design.

Originality/value

Housing price is commonly regarded as the total value of a bundle of housing quality and environmental characteristics. The implicit price of individual quality and characteristic is often identified by the hedonic pricing model. However, its validity depends on a lot of econometric assumptions. The study is the first to be conducted after the outbreak of SARS in Hong Kong to gauge the opinions of residents on health/economy issues

Details

Facilities, vol. 27 no. 5/6
Type: Research Article
ISSN: 0263-2772

Keywords

Article
Publication date: 1 March 1998

Jie Wen

The evaluation of both tourism and tourist resources in China remains problematic. On the macro‐level, only the positive contributions of tourism have been evaluated…

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Abstract

The evaluation of both tourism and tourist resources in China remains problematic. On the macro‐level, only the positive contributions of tourism have been evaluated, ignoring the aspects of disparities between the east coast and the inland area, inbound tourism and domestic tourism, nature‐based and city‐based tourism, positive and negative effects from tourism and so on. On the micro‐ and site‐ specific level, tourist resources characterised by non‐marketable and non‐use values are not properly evaluated, exposing these fragile resources to the plight of exploitation. Commercialisation of tourist resources, including natural environment and ethnic cultures, threatens further development of tourism in China. The limited applicability of the travel cost and the contingent valuation method in measuring the value of recreation sites in China is discussed.

Details

International Journal of Social Economics, vol. 25 no. 2/3/4
Type: Research Article
ISSN: 0306-8293

Keywords

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