Hypothetical surveys versus real commitments: further evidence

Abstract

The contingent valuation method is frequently used to estimate willingness to pay for environmental services. However, numerous studies have raised serious questions about the validity and reliability of such estimates. The study reported here extends the analysis of hypothetical versus real commitments by considering the effects of alternative indicators of WTP in the hypothetical setting. While part of the results confirm the findings of previous studies–CV methods can result in an overestimate of actual mean WTP–evidence is also produced that a carefully designed CV instrument can produce an estimate of mean WTP that is much closer to actual mean WTP than previous studies would suggest.