More in Good Condition or Less in Bad Condition ? Valence-Based Framing Effects in Environmental Valuation.

This study addresses an impor-tant gap in the stated preference literature concerning valence-based framing of discrete choice experiment attributes. Valence-based framing arises when equivalent outcomes are presented in different ways by accentu-ating either the positive (e.g., more in good condition) or negative information (e.g., less in bad condition). We find that alternative framings produce different willingness-to-pay estimates, with implications for benefit-cost analysis. We recommend neutral attribute de-scriptions and otherwise testing for the effects of alternative framings to obtain more robust welfare evidence. We also show that the fram -ing used does not affect the choice paradigm adopted by respondents. (JEL Q51, D83)