The role of uncertainty in the relationship between fairness evaluations and willingness to pay

Jorgensen, Bradley S., Syme, Geoffrey J. and Nancarrow, Blair E. (2006) The role of uncertainty in the relationship between fairness evaluations and willingness to pay. Ecological Economics, 56 1: 104-124. doi:10.1016/j.ecolecon.2004.12.024

Author Jorgensen, Bradley S.
Syme, Geoffrey J.
Nancarrow, Blair E.
Title The role of uncertainty in the relationship between fairness evaluations and willingness to pay
Journal name Ecological Economics   Check publisher's open access policy
ISSN 0921-8009
Publication date 2006
Sub-type Article (original research)
DOI 10.1016/j.ecolecon.2004.12.024
Volume 56
Issue 1
Start page 104
End page 124
Total pages 21
Place of publication Amsterdam
Publisher Elsevier Science Bv
Collection year 2006
Language eng
Subject CX
Abstract Participants in contingent valuation studies may be uncertain about a number of aspects of the policy and survey context. The uncertainty management model of fairness judgments states that individuals will evaluate a policy in terms of its fairness when they do not know whether they can trust the relevant managing authority or experience uncertainty due to insufficient knowledge of the general issues surrounding the environmental policy. Similarly, some researchers have suggested that, not knowing how to answer WTP questions, participants convey their general attitudes toward the public good rather than report well-defined economic preferences. These contentions were investigated in a sample of 840 residents in four urban catchments across Australia who were interviewed about their WTP for stormwater pollution abatement. Four sources of uncertainty were measured: amount of prior issue-related thought, trustworthiness of the water authority, insufficient scenario information, and WTP response uncertainty. A logistic regression model was estimated in each subsample to test the main effects of the uncertainty sources on WTP as well as their interaction with fairness and proenvironmental attitudes. Results indicated support for the uncertainty management model in only one of the four samples. Similarly, proenvironmental attitudes interacted rarely with uncertainty to a significant level, and in ways that were more complex than hypothesised. It was concluded that uncertain individuals were generally not more likely than other participants to draw on either fairness evaluations or proenvironmental attitudes when making decisions about paying for stormwater pollution abatement.
Keyword fairness evaluations
willingness to pay
stormwater pollution abatement
Q-Index Code CX

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Communication and Arts Publications
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Created: Wed, 15 Aug 2007, 09:23:43 EST