Incorporating zero and missing responses into CVM with open-ended bidding: willingness to pay for blue skies in Beijing
X. Yu and D. Abler
Environment and Development Economics (1 October 2010)
DOI: 10.1017/S1355770X10000197
Based on decision theory, this paper suggests a four-hurdle model to deal with zero and missing responses in the contingent valuation method with open-ended bidding, which is used to analyze the willingness to pay for blue skies in Beijing where air pollution is known to be very serious. The mean and the median of the predicted willingness to pay for blue skies per household are, respectively, 120.15 and 128.60 yuan, less than 0.2