TEMPORAL INSENSITIVITY OF PVWTP AND IMPLIED DISCOUNT RATES IN CVM

The sensitivity of WTP is tested in terms of the present value and the implied discount rates are derived by varying the length of benefit and the temporal payment schedules. Results show that holding the length of the project constant, the present value of willingness to pay does not vary significantly across payment schemes (one time payment, versus life of the project, versus perpetuity). Heteroskedasticity of error term over payment schemes fails to be accepted. Holding the payment scheme constant, the present value of WTP is insensitive to the life of the project (5 or 10 years). The implied discount rates are high as previous literatures.