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An Economic Analysis of Homeowners' Preferences and Perceptions Regarding Termite Prevention and Control in Louisiana

This thesis used a mail survey to collect data on homeowners' preferences and perceptions regarding termite prevention and control in four metropolitan areas of Louisiana (Monroe, Alexandria, Baton Rouge, and New Orleans). Respondents were asked to rank four different alternatives differing in cost, treatment choice, and number of inspections on termite control options. These ordered preference data were then analyzed using a contingent ranking method to determine the homeowner's choice for termite control. It was found that more than three-fourths (77%) of homeowners preferred to control termites and were willing to pay for it.
In addition to contingent ranking, willingness to pay (WTP) value was elicited to examine homeowners' real and hypothetical willingness to pay for termite control. Real willingness to pay for termite control was calculated based on the house size and the respondent's current termite control contract. A hypothetical willingness to pay question was asked immediately after respondents were asked to rank the four alternative termite control options. The first question asked a dichotomous choice to respondents regarding whether they were willing to pay $0.56 for termite control. In the second stage, they were asked to state the WTP amount in an open format. The estimated average annual hypothetical and real willingness to pay for a homeowner were 32 cents and 16 cents per square foot of home living space, respectively, indicating that there was a significant level of hypothetical bias in the elicitation process. Length of home ownership, living space, market value of home, attitude about whether or not respondents consider termites to be an existing problem in their neighborhoods, income, ethnicity, and gender were significant variables in determining respondents' willingness to pay for termite control. The differences between hypothetical and real willingness to pay were attributed to length of home ownership, living space, attitude about whether or not respondents consider termites to be an existing problem in their neighborhoods, and income.

Identiferoai:union.ndltd.org:LSU/oai:etd.lsu.edu:etd-0707103-110638
Date08 July 2003
CreatorsBhandari, Doleswar
ContributorsKurt M. Guidry, Krishna P. Paudel, Richard P. Vlosky, Michael A. Dunn
PublisherLSU
Source SetsLouisiana State University
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lsu.edu/docs/available/etd-0707103-110638/
Rightsunrestricted, I hereby grant to LSU or its agents the right to archive and to make available my thesis or dissertation in whole or in part in the University Libraries in all forms of media, now or hereafter known. I retain all proprietary rights, such as patent rights. I also retain the right to use in future works (such as articles or books) all or part of this thesis or dissertation.

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