Citizens, consumers and contingent valuation : an investigation into respondent behavior

Abstract

In the wake of controversial recent Australian applications of Contingent Valuation, widespread future use of the technique as an input to environmental decision making in this country is by no means certain. The thesis involves a comprehensive critique of CV, and an analysis of the Coronation Hill and south-east forests CV studies undertaken by the Australian Resource Assessment Commission. Results raise questions concerning the way in which individuals respond to CV questions involving public goods, and in particular, whether individuals respond in a manner that is consistent with the cost benefit analysis use of results. This leads into a critique of 'rational economic man', focussing on notions of multiple selves, and institutionally dependent behaviour. It is argued that Sagotrs (1988) consumer-citizen distinction provides a useful point of departure for discussions of such matters in the CV context. The distinction between citizen and consumer CV responses is explored in detail, and a framework presented with which to view the expression of citizen CV responses. Likely characteristics of CV results that are more consistent with a citizen-voter interpretation than a CV -consumer interpretation include:(i) respondents acting altruistically toward other members of the current generation who stand to benefit from a preservation outcome; (ii) respondents taking into account the opportunity costs associated with preservation; (iii) respondents subordinating private interests (such as use values) in favour of collective interests; (iv) respondents taking a range of procedural justice notions into account when formulating responses; and (v) respondents having preferences of a lexicographic nature, motivated by either deontological ethics, rules of thumb or other simplifying decision heuristics, or the utilitarian desire to express one's preferences and values. In order to test how citizen considerations relate to, and are primed by, different CV scenarios, a mail survey was conducted among a random sample of adult Australians. Results indicate that although more consistent with respondent beliefs, responses to referendum scenarios reflect citizen considerations to a greater extent than do trust fund scenarios. A scenario designed to reduce the influence of some citizen considerations in referendum scenarios met with only minimal success. The use of structural equation modelling to model the structure of citizen CV responses is explored, and a model of symbolic CV responses is presented, and subjected to some initial empirical investigation. It is argued that the highly symbolic nature of most environmental issues often activates the need for individuals to express Vl their attitudes and values, which when coupled with a perceived non-decisiveness of individual questionnaire responses, can result in value-expressive considerations dominating CV responses at the expense of the desired outcome-appraisal economic tradeoffs. In terms of non-decisiveness, CV questionnaires resemble electoral preferences more than market preferences, and the assumption of behavioural neutrality across such institutions may not be valid. The implications for some topical issues in CV are also explored. Final comments focus on the broader social choice and sustainability implications of the consumer-citizen divergence. Show more