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Environmental and Resource Economics

, Volume 39, Issue 2, pp 189–198 | Cite as

Contingent values as implicit contracts: estimating minimum legal willingness to pay for conservation of large carnivores in Sweden

  • Göran Bostedt
  • Göran Ericsson
  • Jonas Kindberg
Article

Abstract

Mean willingness-to-pay (WTP) based on multiple bounded, discrete choice responses from contingent valuation surveys are normally obtained using some kind of parametric estimator. This paper instead exploits the possibility to interpret the response to the discrete-choice question as an implicit contract between the researcher and the respondent, resulting in a minimum legal WTP (MLW) estimator. Never previously used in valuation literature, it is used in this paper to estimate the WTP for the preservation of large carnivores in Sweden, based on a large scale, national survey. Results show that MLW estimates only were 12–19% of the comparable parametric estimates. In keeping with other results in contingent valuation literature, we find that the MLW estimates are positively related to the educational level, income and the fraction of urban population, while negatively related to age. Among the advantages of the MLW estimator is its transparency as well as the fact that it rests on a contractual notion of WTP.

Keywords

Contingent valuation Willingness-to-pay Minimum legal WTP Discrete choice Carnivores 

JEL Classification

Q51 

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Copyright information

© Springer Science+Business Media, Inc. 2007

Authors and Affiliations

  • Göran Bostedt
    • 1
  • Göran Ericsson
    • 2
  • Jonas Kindberg
    • 2
  1. 1.Department of Forest EconomicsSwedish University of Agricultural SciencesUmeåSweden
  2. 2.Department of Animal EcologySwedish University of Agricultural SciencesUmeåSweden

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