Journal of Forest Economics > Vol 11 > Issue 3

Testing transferability of willingness to pay for forest fire prevention among three states of California, Florida and Montana

John B. Loomis, John.Loomis@colostate.edu , Hung Trong Le, hungtl03@yahoo.com , Armando Gonzales-Caban
 
Suggested Citation
John B. Loomis, Hung Trong Le and Armando Gonzales-Caban (2005), "Testing transferability of willingness to pay for forest fire prevention among three states of California, Florida and Montana", Journal of Forest Economics: Vol. 11: No. 3, pp 125-140. http://dx.doi.org/10.1016/j.jfe.2005.07.003

Publication Date: 01 Dec 2005
© 0 2005 John B. Loomis, Hung Trong Le, Armando Gonzales-Caban
 
Subjects
 
Keywords
JEL Codes:, Q260, Q230
Benefits transfer, Contingent valuation, Mechanical fuel reduction, Prescribed burning
 

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In this article:
Introduction 
Hypothesis tests on response rate and protest responses 
WTP model and related hypothesis tests 
Survey design 
Data collection and survey mode 
Response rate analysis 
Refusal to pay analysis 
Statistical analysis of willingness to pay responses 
Testing equality of variable coefficients across states for the two programs 
Mean willingness to pay comparison across states 
Conclusion and policy implication 

Abstract

The equivalency of willingness to pay between the states of California, Florida and Montana is tested. Residents in California, Florida and Montana have an average willingness to pay of $417, $305, and $382 for prescribed burning program, and $403, $230, and $208 for mechanical fire fuel reduction program, respectively. Due to wide confidence intervals, household WTP in the three states are not statistically different. Over all tests, there is mixed evidence on transferability, but California and Montana WTP are similar to each other for prescribed burning and Florida and Montana have similar values for the mechanical fuel reduction.

DOI:10.1016/j.jfe.2005.07.003