Payment and policy consequentiality in dichotomous choice contingent valuation: Experimental design effects on self-reported perceptions

Citation

Borger T, Abate TG, Margrethe A & Zawojska E (2021) Payment and policy consequentiality in dichotomous choice contingent valuation: Experimental design effects on self-reported perceptions. Land Economics, 97 (2), pp. 407-424. https://doi.org/10.3368/le.97.2.407

Abstract
Although the contingent valuation literature emphasises the importance of controlling for respondents’ consequentiality perceptions, this literature has rarely accounted for the difference between payment and policy consequentiality. We examine the influence of the randomly assigned tax amount on consequentiality self-reports and their potential endogeneity using data from a single dichotomous choice survey about reducing marine plastic pollution in Norway. Results show that consequentiality perceptions are a function of the tax amount, with payment consequentiality decreasing and policy consequentiality increasing with higher tax amounts. We discuss the challenge of finding valid instruments to address potential endogeneity of consequentiality perceptions.

Keywords
Contingent valuation; single dichotomous choice; payment consequentiality; policy consequentiality; endogeneity; marine plastic pollution

Journal
Land Economics: Volume 97, Issue 2