Labour as a utility measure in contingent valuation studies : how good is it really?

Ahlheim, Michael; Frör, Oliver; Heinke, Antonia; Duc, Nguyen Minh; Van Dinh, Pham

Labour as a utility measure in contingent valuation studies : how good is it really?

dc.contributor.author	Ahlheim, Michael	de
dc.contributor.author	Frör, Oliver	de
dc.contributor.author	Heinke, Antonia	de
dc.contributor.author	Duc, Nguyen Minh	de
dc.contributor.author	Van Dinh, Pham	de
dc.date.accessioned	2024-04-08T08:43:37Z
dc.date.available	2024-04-08T08:43:37Z
dc.date.created	2010-03-03
dc.date.issued	2010
dc.description.abstract	The Contingent Valuation Method (CVM) aims at the assessment of people's willingness to pay (WTP) for a public project. The sum of the individual WTPs is interpreted as the social benefits of the project under consideration and compared to the project costs. If the benefits exceed the costs the project is recommended for realization. In very poor societies budgets are so tight that households cannot give up any part of their income, i.e. of their market consumption, in favour of a public project, so that their WTP for that project stated in a CVM interview has to be zero or close to zero. This leads to a severe discrimination against poor regions in the decision process on the allocation of public funds. Therefore, several authors suggest to use labour contributions to the realization of a public project instead of monetary contributions as a measure of people's WTP for that project. In this paper we show theoretically and empirically, based on a CVM study conducted in Vietnam, that labour is severely flawed as a measuring rod for individual utility so that CVM based on labour contributions does not provide a reliable and meaningful decision rule for the allocation of public projects.	en
dc.identifier.swb	319220583
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5319
dc.identifier.urn	urn:nbn:de:bsz:100-opus-4332
dc.language.iso	eng
dc.relation.ispartofseries	FZID discussion papers; 13
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	Cost-benefit analysis	en
dc.subject	Contingent valuation	en
dc.subject	Developing country	en
dc.subject	Public expenditure	en
dc.subject.ddc	330
dc.subject.gnd	Entwicklungsländer	de
dc.subject.gnd	Vietnam	de
dc.title	Labour as a utility measure in contingent valuation studies : how good is it really?	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	7	de
local.faculty.number	3	de
local.institute.number	795	de
local.institute.number	520alt	de
local.opus.number	433
local.series.issueNumber	13
local.series.title	FZID discussion papers
local.university	Universität Hohenheim	de
local.university.faculty	Landesanstalten	de
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Forschungszentrum Innovation und Dienstleistung	de
local.university.institute	Institut für Volkswirtschaftslehre (bis 2010)	de

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