EVALUATING THE EFFECT OF ALTERNATIVE RISK COMMUNICATION DEVICES ON WILLINGNESS-TO-PAY - RESULTS FROM A DICHOTOMOUS CHOICE CONTINGENT VALUATION EXPERIMENT

Two versions of a contingent valuation questionnaire that differ only in the device used to communicate risks from hazardous waste were sent to California households. Both risk communication devices provide WTP functions which vary in a statistically significant fashion with the absolute risk reduction. However, these empirical results also demonst rate that different risk communication devices produce statistically d ifferent logit equations and hence estimates of willingness to pay (WT P) for reductions in exposure to hazardous waste. The pros and cons of using each risk communication device in CVM surveys is also discussed .