Scandinavian Working Papers in Economics
EfD Discussion Paper,
Environment for Development, University of Gothenburg
No 23-16: Stated preferences with survey consequentiality and outcome uncertainty: A split sample discrete choice experiment
Tensay Hadush Meles (), Razack Lokina (), Erica Louis Mtenga () and Julieth Julius Tibanywana ()
Additional contact information
Tensay Hadush Meles: Economic and Social Research Institute, Ireland
Razack Lokina: University of Dar es Salaam
Erica Louis Mtenga: Georgia State University
Julieth Julius Tibanywana: School of Economics, University of Dar es Salaam, Tanzania
Abstract: Stated preference studies are often based on the assumptions that proposed outcomes would be realized with certainty and respondents believe their survey responses are consequential. This paper uses split sample treatments to test whether survey consequentiality and outcome uncertainty lead to differences in welfare measures, focusing on a discrete choice experiment on improving quality of electricity supply among business enterprises in Tanzania. Our results show that while survey consequentiality and outcome uncertainty have some influence on preferences and willingness to pay (WTP) estimates for certain attributes, they do not significantly affect overall welfare estimates. The findings highlight that incorporating uncertainty and survey consequentiality into a stated preference study could improve its credibility but may not have substantial economic or statistical imp
Keywords: Stated preferences; Survey consequentiality; Outcome uncertainty; Discrete choice experiment; Power outages; Business enterprises; Tanzania
Language: English
48 pages, October 16, 2023
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EfD_DP-23-16.pdfFull text
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