TINKERING WITH VALUATION ESTIMATES: IS THERE A FUTURE FOR WILLINGNESS TO ACCEPT MEASURES?

viewed two pictures in this section: picture A represented the status quo visibility and electric bill
while picture B represented reduced visibility and a lower electric bill. The CVM questions were
asked as follows:

1. WTA: Would you be willing to accept this new level of visibility (indicated by picture B) in
the White Mountain National Forest if your monthly electric bill were reduced by $x?

2. WTP: Would you be willing to pay $x per month more for electricity to avoid this new level
of visibility (indicated by picture B) in the White Mountain National Forest?

In all cases, picture A, which represented the base scenario, or status quo, described the
average visibility level at the site during the summer months. Picture B represented one of four
visual range reductions. The electric bill reduction was 20 percent of the respondent’s total
monthly bill in the personal survey and one of 1/4th, 1∕3rd, or ½ of the monthly bill for the first
mail survey respondents,³ while respondents to the second mail survey were confronted with bids
ranging from $10 to $50 per month (these values were chosen based on the initial year surveys).

A series of follow up questions were asked to obtain information about each respondent’s
socio-economic characteristics, motives involved in answering the valuation question, and plans,
if any, to visit the wilderness area in the future.

Double wave mailings with postcard follow ups were used in each mail survey. Response
rates were approximately 36 percent for the WTA survey and 39 percent for the WTP survey.

The WTA and WTP CVM questions followed an introductory statement about
electricity deregulation and air quality in the White Mountains. Each respondent viewed two
pictures: picture A represented the status quo visibility and electric bill while picture B
represented reduced visibility. In all cases, picture A, which represented the base scenario, or

³ Twenty percent is the average savings expected from deregulation.

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