Contents

Income and distance-decay effects on willingness to pay estimated by the contingent valuation method

이종연

Abstract

This study suggests a methodology for enhancing accuracy in evaluating amenity by the contingent valuation method when household's willingness to pay (WTP) is dependent to its income and the distance between a respondent's residence and the location of a target facility. Using a linear city model, this study demonstrates the influences of income and distance-decay effects on WTP. Simulations are performed to check the validity of the model, as well as to predict consequences when income and distance-decay effects are not properly treated. Finally, the suggested methodology is applied to two real cases. The estimation results from a structural model show that the calculated total benefit varies largely when income and distance-decay effects exist and are ignored. Also, an ad hoc model generates significantly different estimates from the utility difference model this study adopted. The difference in estimates suggests that the total benefit has to be estimated by a structural model.

Issue Date
2016-03
Publisher
University of Newcastle upon Tyne. Dept. of Town and Country Planning, Taylor & Francis (Routledge)
Citation
Journal of Environmental Planning and Management, v.59, no.11, 2016
URL
https://www.researchgate.net/publication/297746552_Income_and_distance-decay_effects_on_willingness_to_pay_estimated_by_the_contingent_valuation_method
DOI
10.1080/09640568.2015.1100984
Journal Title
Journal of Environmental Planning and Management
Language
English
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