Testing the embedding effect in the valuation of lagoon recovery

What is it about?

The contingent valuation method was employed to assess the benefits of recovering the Laguna Grande de San Pedro de La Paz in the 8th Region of Chile and to analyze the possible existence of a part-whole valuation effect (embedding effect). Our results indicate that it is not possible to accept the hypothesis of a perfect part-whole valuation effect and that there is an imperfect substitution relationship between the two projects analyzed. The absence of the part-whole valuation effect may be explained by the precautions adopted in the survey’s design and application, based on the review and analysis of prior studies.

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Why is it important?

The precautions taken in the design and application of the contingent valuation survey, derived from the review and analysis of previous investigations provide ample help in the optimal design of Contingent Valuation studies.

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