From Willingness to Pay to Behavioral Prediction: Exploring the Interconnection among CVM, CE, and PLS-SEM

Kaiyu Zhang

doi:10.62177/apemr.v2i6.794

Authors

Kaiyu Zhang University Putra Malaysia

DOI:

https://doi.org/10.62177/apemr.v2i6.794

Keywords:

CVM, CE, PLS-SEM, Non-market Valuation Model, Behavioral Economics, Total economic value

Abstract

This article reviews three related methods extensively used in non-market valuation research, namely, contingent valuation method (CVM), choice experimental method (CE) and partial least squares structural equation model (PLS-SEM).CVM measures the maximum monetary amount of willingness to pay (WTP) that people are willing to pay for non-market goods, CE analyses the preference trade-offs at the attribute level, and PLS-SEM explores the potential psychological mechanism underlying behavioral intention.This article refers to recent cross-disciplinary research to trace the historical process of development, complementarity of methods and integration of theories.

This article believes that the integration of CVM, CE and PLS-SEM has entered a new stage in valuation research, it goes beyond the static monetary valuation and turns to a behavioral valuation path that connects economic, cognitive and social aspects of decision-making.This article discusses the convergence of methodology, as well as the challenges in data compatibility, sampling requirements and differences in model assumptions.In addition, this article also focuses on the future research direction, including hybrid survey design, data integration and interdisciplinary theoretical expansion.Finally, this article advocates establishing an empirical framework to predict and explain public preferences in the field of heritage and environment.Even if it is impossible to make direct policy adjustments, such as price adjustment, this comprehensive assessment model can still play a predictive and strategic role, thus providing decision-makers with an empirical basis for sustainable and inclusive management.

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