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A Method for Improving Welfare Estimates from Multiple-Referendum Surveys

Journal of Agricultural & Resource Economics, Forthcoming

29 Pages Posted: 2 Apr 2012  

GwanSeon Kim

University of Georgia - Department of Agricultural & Applied Economics

Daniel R. Petrolia

Mississippi State University - Department of Agricultural Economics

Matthew G. Interis

Mississippi State University

Date Written: April 1, 2012

Abstract

This paper introduces an alternative non-market value elicitation method, the “quasi-double-referendum (QDR),” applied to barrier island restoration in Mississippi. It is appropriate for surveys which elicit willingness-to-pay responses to multiple projects differing in scale only, and can be used to increase efficiency while mitigating bias. We compare results to the more commonly used single-referendum (SR) method under two admissible ranges of willingness to pay: negative to positive infinity, and zero to income. The confidence intervals of the QDR models were narrower. We argue that the QDR approach should be less subject to bias than the commonly used double-referendum approach.

Keywords: quasi double-bound method, single-bound method, willingness to pay

JEL Classification: C34, Q24

Suggested Citation

Kim, GwanSeon and Petrolia, Daniel R. and Interis, Matthew G., A Method for Improving Welfare Estimates from Multiple-Referendum Surveys (April 1, 2012). Journal of Agricultural & Resource Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2033268

GwanSeon Kim

University of Georgia - Department of Agricultural & Applied Economics ( email )

Athens, GA 30602-7509
United States

Daniel R. Petrolia (Contact Author)

Mississippi State University - Department of Agricultural Economics ( email )

Box 5187
Mississippi State, MS 39762
United States

Matthew G. Interis

Mississippi State University ( email )

Box 5187
Mississippi State, MS 39762
United States

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