A New Psychological Approach to Dichotomous Choice CVM.

This paper considers an alternative approach dichotomous choice contingent valuation (DC), referred to as the dissonance minimising format (DM). This method seeks to reduce the extent of positive bias at the formulation stage of stated preference experiments known as “yea-saying”, in order to gain a more accurate measure of respondent WTP. Both the DC and DM methodologies are applied to the case study of minesite rehabilitation within Victoria, with particular reference to the abandonment of open pits following small-scale gold mining operations. The results presented here indicate that the DM model has considerable promise for reducing yea-saying within dichotomous choice CV. The results also indicate that the community welfare loss associated with permanent alteration of the landscape from open cut mining is significant, and is far greater than the benefits of such operations to the mine administrators