Analyzing Single Bounded Dichotomous Choice Contingent Valuation Data Using Non-Parametric Method Compared with Parametric Method for Protection of Chandelier Lily Flower in Gilan Province

Dichotomous choice contingent valuation method is used to estimate non-market values. This method has some disadvantages, including whether the statistical method used to estimate the willingness to pay is the correct choice or not. This study, for the first time in the country, makes use of a nonparametric method to estimate the willingness to pay for the protection of Chandelier Lily flower in Gilan province and compare the results with those of the parametric method. To compare these methods, distributive parameters of willingness to pay (including mean, standard deviation, t-statistics and confidence interval) are calculated and compared. The study results show that the mean amounts of willingness to pay estimated in the parametric and nonparametric methods are 6540.33 and 8131.79 Rials and their t-statistics are 10.71 and 14.41, respectively. Also, the t-statistics is calculated 1.91 for the equality of two means, showing that the obtained amounts of mean willingness to pay using these methods are not significantly different at 5%. This indicates that the chosen distribution form for estimating the amounts of willingness to pay is correct for parametric method. Finally, it is suggested that policy and decision makers in the context of natural and environmental resources be very careful when using the calculated willingness to pay, awaring of the method used for calculation and the assumptions considered.

JEL Classification: Q27, C13, C14, C25

Keywords:
Contingent Valuation, Dichotomous Choice, Parametric vs. Nonparametric Method, Non-Market Values