ESTIMATING STATED PREFERENCES WITH RATED-PAIR DATA - ENVIRONMENTAL, HEALTH, AND EMPLOYMENT EFFECTS OF ENERGY PROGRAMS

Respondents' stated preferences for attributes related to various elec tricity-generation scenarios are analyzed using a series of pairwise r atings. Multiple observations for each respondent facilitate estimatin g individual scale parameters. Scale estimates can identify uninformat ive rating patterns and make it possible to delete such observations o r adjust WTP calculations. Cross-section/time-series analysis of the d ata indicates that nonprice attributes increase in salience during the course of the experiment. Thus later responses may be better indicato rs of preferences than earlier responses. Comparisons of polychotomous with dichotomous models indicate that most respondents' relative-pref erence ratings are not simply dichotomous, but discriminate systematic ally along the rating scale. (C) 1997 Academic Press.