Pierre-Alexandre Mahieu

Determinants of willingness-to-pay for water pollution abatement: A point and interval data payment card application

This paper shows a contingent valuation exercise of pollution abatement in remote lakes. In addition to estimating the usual interval data model, it applies a point and interval statistical approach allowing for uncensored data, left-censored data, right-censored data and left- and right-censored data to explore the determinants of willingness-to-pay in a payment card survey. Results suggest that the estimations between models may diverge under certain conditions.

Community-based health insurance and social capital: a review

Community-Based Health Insurance (CBHI) is an emerging concept for providing financial protection against the cost of illness and improving access to quality health services for low-income rural households who are excluded from formal insurance. CBHI is currently being provided in some rural areas in developing countries and there is ongoing research about its impact on the well-being of the poor in these areas. However, the success of CBHI revolves around the existence of social capital in the community. This has led researchers to explore the impact of CBHI on the well-being of the poor in rural areas, especially as it relates to social capital. The overall objective of this paper is to review recent developments that address the link between CBHI and social capital. Policy implications are also discussed.JEL ClassificationC10, I15

Exploring the determinants of uncertainty in contingent valuation surveys

This paper uses the interval data model to explore the determinants of uncertainty in two-way payment ladder and in multiple-bounded uncertainty choice surveys. It estimates the uncertainty function that relates the size of the willingness-to-pay range to explanatory variables, where one of them is a proxy of the actual willingness-to-pay. The combination of the interval data model and the inclusion of the proxy variable present some advantages over the ordinary least square estimations currently used in the literature. In particular, it reduces the risk of the omitted variable bias and it takes into account that the dependent variable is not fully observed.

Social preferences for fuel break management programs in Spain: a choice modelling application to prevention of forest fires

This article reports on an economic valuation study of alternative fire prevention programs in the province of Malaga, southern Spain. The main aim of this study was to explore the social preferences for several forest fire prevention management issues. Fuel break programs were presented that differed in terms of cleaning technique (controlled grazing, prescribed burning and mechanical treatments), design (from traditional linear unshaded fire breaks to more landscape and environmentally friendly structures, such as shaded fuel breaks) and density (linked to annual burnt area). RESULTS show that the population was clearly interested in the potential of the proposed programs to reduce fire. Lessons learnt from this study could be relevant for the development of fire prevention policies and specific prevention campaigns in Mediterranean forests.

Using respondents’ uncertainty scores to mitigate hypothetical bias in community-based health insurance studies

Community-based health insurance has been implemented in several developing countries to help the poor to gain access to adequate health-care services. Assessing what the poor are willing to pay is of paramount importance for policymaking. The contingent valuation method, which relies on a hypothetical market, is commonly used for this purpose. But the presence of the hypothetical bias that is most often inherent in this method tends to bias the estimates upward and compromises policymaking. This paper uses respondents’ uncertainty scores in an attempt to mitigate hypothetical bias in community-based health insurance in one rural setting in Cameroon. Uncertainty scores are often employed in single dichotomous choice surveys. An originality of the paper is to use such an approach in a double-bounded dichotomous choice survey. The results suggest that this instrument is effective at decreasing the mean WTP.

Determinants of willingness-to-pay for renewable energy: does the age of nuclear power plant reactors matter?

Many countries are facing a dilemma over whether to extend the lives of their old reactors or make costly capital investments on Renewable Energy (RE). This paper explores the determinants of Willingness-To-Pay (WTP) for RE in France by means of a contingent valuation question that was included in a large web survey organized by the OECD. The main contribution of our paper is to test whether people living close to a reactor are sensitive to the age of the reactor. We find that the age of the reactor has a positive effect on WTP for RE.