Dekker, T, Hess, S, Brouwer, R et al. (1 more author) (2016) Decision uncertainty in multi-attribute stated preference studies. Resource and Energy Economics, 43. pp. 57-73. ISSN 0928-7655
Abstract
Econometric modelling of decision uncertainty has received extensive attention in the contingent valuation literature, but these methods are not directly transferable to the realm of multi-attribute stated preference studies. In this paper, an integrated choice and latent variable model tracing the impact of decision uncertainty on the valuation of flood risks reductions in the Netherlands is developed. The proposed model structure is not subject to the potential endogeneity bias and measurement error issues associated with most applied methods. The driving factors of decision uncertainty are identified through stated choices and a set of self-reported decision uncertainty follow-up questions. The model simultaneously accounts for the impact of decision uncertainty on individual choices and welfare estimates. In the presented case study, uncertain respondents are found to make more random choices and select the opt out option more often. Willingness-to-pay for flood risk reductions increases after accounting for these behavioural responses to decision uncertainty.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2015, Elsevier. This is an author produced version of a paper published in Resource and Energy Economics. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Decision uncertainty; Stated choice; Latent variable; Scale heterogeneity; Flood risk; Bayesian analysis |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > Institute for Transport Studies (Leeds) > ITS: Economics and Discrete Choice (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 25 Nov 2015 12:57 |
Last Modified: | 02 Dec 2017 01:38 |
Published Version: | http://dx.doi.org/10.1016/j.reseneeco.2015.11.002 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.reseneeco.2015.11.002 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:92100 |