Estimating discount rates for environmental goods: Are People's responses inadequate to frequency of payments?

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dc.contributor.authorVasquez-Lavin, Felipe
dc.contributor.authorCarrasco, Moises
dc.contributor.authorBarrientos, Manuel
dc.contributor.authorGelcich, Stefan
dc.contributor.authorPonce Oliva, Roberto D.
dc.date.accessioned2025-01-20T22:05:40Z
dc.date.available2025-01-20T22:05:40Z
dc.date.issued2021
dc.description.abstractMost stated preference studies estimate discount rates using a split-sample approach. Each sample faces a different payment frequency (for instance, 1, 5, 10) together with a randomly assigned bid vector; both the frequency of payments and the bid are fixed for a specific individual. This paper evaluates whether allowing respondents to choose their preferred payment frequency affects the estimated discount rate. We use data from a contingent valuation survey of a network of marine reserves and estimate discount rates using both an exogenous and endogenous approach. The former calculates the mean of the willingness to pay (WTP) for each sample and then finds the discount rate that makes the present value of each payment frequency equivalent. The latter estimates the WTP and the discount rate jointly. Results show that allowing people to choose the payment schedule significantly reduces the implicit discount rate. We observed the highest reductions in discount rates when we used all the information available from the valuation questions to bound the WTP distribution. Our analysis suggests that the exogenous approach would not be recommended for testing the adequacy of people's responses to the frequency of payments. (c) 2021 Elsevier Inc. All rights reserved.
dc.fuente.origenWOS
dc.identifier.doi10.1016/j.jeem.2021.102446
dc.identifier.eissn1096-0449
dc.identifier.issn0095-0696
dc.identifier.urihttps://doi.org/10.1016/j.jeem.2021.102446
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/94159
dc.identifier.wosidWOS:000714741000010
dc.language.isoen
dc.revistaJournal of environmental economics and management
dc.rightsacceso restringido
dc.subjectIntertemporal preferences
dc.subjectDiscount rate
dc.subjectExponential discounting
dc.subjectContingent valuation
dc.subject.ods03 Good Health and Well-being
dc.subject.odspa03 Salud y bienestar
dc.titleEstimating discount rates for environmental goods: Are People's responses inadequate to frequency of payments?
dc.typeartículo
dc.volumen107
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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