A If one is preparing a contingent valuation study what are

A: If one is preparing a contingent valuation study, what are the sources of bias that one migh encounter?

B: If an unemployed person were hired to work on a public project. An accountant would include all his wages in an estimate of the project’s cost to society. An economist however would not. Why?

Solution

QA: Contingent valuation study is conducted to measure the value of all kinds of ecosystems and envioronmental services in terms of economical value.

This method generally includes asking public/people about what could be the the price they would be willing to pay for environmental services. Such surveys are common in this method.

Although this method is common in use and simple some sort of biasness is associated with this method. For example The expressed answers to a willingness to pay question in a contingent valuation format may be biased because the respondent is actually answering a different question than the surveyor had intended. Rather than expressing value for the good, the respondent might actually be expressing their feelings about the scenario or the valuation exercise itself.

In addition strategic biasness may arises when to get a partocular answer, the respondent gives so e king of wrong answer.

Information biasness arises when respondents are deliberately forced by surveyers to value some eco service of which they have little or no experience.

Non-response bias is a concern when sampling respondents, since individuals who do not respond are likely to have, on average, different values than individuals who do respond.