2002 World Congress of Environmental and Resource Economists

In this paper we present a partial test of scope within a choice experiment that values the benefits of water quality improvements. The water quality improvement we study is of the type likely to be necessary in implementing the European Union's new Water Framework Directive. Concerns regarding scope effects arose in the contingent valuation literature when some experiments revealed a lack of sensitivity to the size of the public good being offered. In order to test the effect of changing attribute levels between two samples of individuals we design two surveys; one with a base set of prices and the other with 1/3 of the base set of prices. This constitutes a form of scope test as the second sample receives much better value for the bids they are offered. The results indicate that fewer people choose a public good option when the higher set of prices is employed.



	Paper Title:	Do Choice Experiments Pass The Scope Test? A Test Of Scope In A Choice Experiment Examining The Benefits Water Quality Improvements
	Presenting Author:	Nick Hanley (University of Glasgow)
	Coauthor 1:	Vic Adamowicz
	Coauthor 2:	Robert Wright
	Coauthor 3:
	Abstract:	In this paper we present a partial test of scope within a choice experiment that values the benefits of water quality improvements. The water quality improvement we study is of the type likely to be necessary in implementing the European Union's new Water Framework Directive. Concerns regarding scope effects arose in the contingent valuation literature when some experiments revealed a lack of sensitivity to the size of the public good being offered. In order to test the effect of changing attribute levels between two samples of individuals we design two surveys; one with a base set of prices and the other with 1/3 of the base set of prices. This constitutes a form of scope test as the second sample receives much better value for the bids they are offered. The results indicate that fewer people choose a public good option when the higher set of prices is employed.
	Link to paper:	http://weber.ucsd.edu/~carsonvs/papers/5009.doc

	Session / Day / Time	8C / Tuesday / 4:00 - 6:00 pm

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