Geographic differences in contingent valuation survey responses: an application to forest fire prevention programs in USA and Vietnam

Abstract

Benefit measures are helpful in designing efficient environmental policy, and the question on how to determine benefit measures is a major concern for environmental economists. Because of this, the use of these measures in benefit transfers from one study area to another has become prevalent in policy analysis. The first purpose of this study is to find out how much residents in the three very distinct states of California, Florida and Montana, support prescribed burning and mechanical fire fuel reduction techniques through a contingent valuation method. We test whether the willingness to pay per household is similar or not and whether the willingness to pay functions are transferable between three states. The next purpose is to test whether willingness to pay for fire fuel reduction programs is sensitive to acreage reduction or not. Finally, we investigate the feasibility of applying contingent valuation method to value forest fire prevention in Vietnam. Available data reveal that from 70% to 98% of people agreed to pay the proposed bid amounts and that fire fuel reduction programs are highly supported in three states of California (CA), Florida (FL) and Montana (MT). With Chi-square test, we found that response rates of white and Hispanic people for support of prescribed burning and mechanical fire fuel reduction programs are not different from each other and no significant difference exists among white and Hispanics people in three states CA, FL and MT in the pattern of protest and non protest reasons for refusing to pay for these programs. White people in CA, FL and MT have the means of willingness to pay of $416.95, $305.04, $328.08 for prescribed burning program and $402.97, $229.74, $207.94 for mechanical fire fuel reduction program, respectively. For Hispanic people, the means of willingness to pay for prescribed burning program in California and Florida are $991.84 and $393.36 and for mechanical fire fuel reduction program. The mean of willingness to pay of $397.5 has been found for Florida. With wide confidence intervals, willingness to pay by white and Hispanic people in three states is similar to each other and these willingness to pay functions are transferable among these states. The contingent valuation method is applicable to the forest fire prevention program in Vietnam context with working days contribution. Money willingness to pay is found to be unrealistic for this program.