Valuation of an Eco-Friendly Hiking Trail Using the Contingent Valuation Method: An Application of Psychological Ownership Theory

Abstract

The purpose of this study is to apply the conceptual framework of psychological ownership (PO) theory to an outdoor recreation context and to estimate hikers' willingness to pay (WTP) for preservation of a hiking resource. In order to calculate visitors' WTP, an adjusted version of the contingent valuation method (CVM) is employed. Since the general CVM method has been critiqued due to exaggeration bias, this study employs a more conservative CVM approach suggested by Johannesson et al. (1998) that helps reduce the hypothetical bias by reaffirming visitors' responses. Results reveal that a sense of PO positively affects WTP and the conservative CVM contributes to obtaining more error-reduced WTP.