WILLINGNESS-TO-PAY FOR CONTINUED GOVERNMENT SERVICE PROVISION - THE CASE OF AGRICULTURE PROTECTION SERVICES

In recent years, the contingent valuation technique has been significantly refined as a method of obtaining values of goods and services in situations where market transaction are absent. It has now found widespread application in the valuation of the environment, and in valuing the preservation of animal species. In this paper we apply the technique to the valuation of more conventional government services, namely the provision by the government of a range of agricultural protection services. The empirical analysis is based on contingent valuation surveys administered to a sample of Western Australian farmers. Logit and ordinary regression models are used to analyse the determinants of individual willingness to pay and estimate aggregate willingness to pay. Estimated aggregate willingness to pay is similar for all specifications. At just over $10 million, it exceeds substantially the estimated annual costs of providing the services. © 1994 Academic Press Ltd.