04.05.2013 Views

By Moses Mbendela Mlangeni - Nelson Mandela Metropolitan ...

By Moses Mbendela Mlangeni - Nelson Mandela Metropolitan ...

By Moses Mbendela Mlangeni - Nelson Mandela Metropolitan ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

2.3 The stages in applying the CVM<br />

There have been many attempts to draw up guidelines for applying the CVM.<br />

The most well known set of guidelines are those drawn up by the Blue-Ribbon<br />

panel in the USA (Barber et al, 1997). These guidelines relate to various steps or<br />

stages entailed in applying CVM (Hanley and Spash, 1993).<br />

2.3.1 Step 1: Establishing a credible / realistic market<br />

The four key issues to be considered in establishing if a credible or realistic<br />

market exists for valuation include questionnaire design, valuation scenario,<br />

payment vehicle and respondent characteristics.<br />

2.3.1.1 Questionnaire design<br />

Designing a good questionnaire is the first step to applying the CVM. The<br />

context of the questionnaire should be as realistic as possible in order to<br />

encourage realistic and truthful responses (Hosking et al, 2004). Because of<br />

limited time to conduct an interview and the potential for respondent fatigue, the<br />

questionnaire must not be overly long.<br />

2.3.1.2 The valuation scenario<br />

The valuation scenario defines the good in question and the nature of the change<br />

in the provision of that good (Arrow et al, 1993: 2). This scenario is what the<br />

respondents will value. It should correspond with a potential future event and<br />

not one that has already occurred (Breedlove, 1994:4). Poorly defined scenarios<br />

will elicit confused answers.<br />

24

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!