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Investigating insensitivity to scope: A split-sample test of perceived scheme realism

Lookup NU author(s): Dr Neil Adrian Powe


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This paper considers the use of contingent valuation to estimate non-market benefits from separately valued nested goods. Survey respondents were asked referendum WTP questions regarding either a scheme to protect the "whole" area of a wetland or a scheme to protect some nested "part" sub-area. The survey design permitted first-response testing and comparison of part and whole values revealed mixed evidence of scope sensitivity. However, allowing for variation in the degree to which differing schemes are considered to be realistic revealed highly significant scope sensitivity. These results illustrate the need for a detailed understanding of the preferences and beliefs of respondents when performing scope sensitivity tests. © 2004 by the Board of Regents of the University of Wisconsin System.

Publication metadata

Author(s): Powe NA, Bateman IJ

Publication type: Article

Publication status: Published

Journal: Land Economics

Year: 2004

Volume: 80

Issue: 2

Pages: 258-271

Print publication date: 01/05/2004

ISSN (print): 0023-7639

ISSN (electronic): 1543-8325

Publisher: University of Wisconsin Press


DOI: 10.2307/3654742


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