Questionnaire

Home - Market Failures - Conjoint Analysis - Policy Options

Conjoint Analysis

Background Information: The source of acid rain in the northeastern United States has been traced to the burning of fossil fuels in the midwestern United States. Wind patterns carry these pollutants eastward where they return to the earth’s surface in the form of acid rain. While midwestern industry needs the electricity that the utilities provide, the northeast suffers large environmental damage from the resulting acid rain. This survey attempts to measure the likelihood of midwesterners changing their consumption patterns, thus dampening the effects of the acid rain in the northeast.

I. Definitions:
Utility Price – The market price of electricity in the midwestern United States.

Recreational Opportunity – The number of different available recreational activities that exist in the northeastern United States. (Examples are skiing, hiking, cycling, etc.)
    Low – fewer than 5 available different activities
   Moderate – between 5 and 10 available different activities
   High – more than 10 available different activities

Wildlife Preservation in the Northeast – A measure of the preservation of plant and animal life in the northeastern United States.
   Low – less than 80% of the current population of wildlife
   Moderate – between 80% and 95% of the current population of wildlife
   High – greater than 95% of the current population of wildlife

Operational Cost – The change in the cost of utility production by midwestern utilities.

Public Image – A measure of the perception of midwesterner business and industry in other regions of the United States.
   Unfavorable – negative perception
   Favorable – positive perception
   Very Favorable – strongly positive perception

II. Survey: (Please rank the following scenarios from one to five, with one being the least desirable and five being the most desirable)

	Utilities Price	Recreational Opportunity	Wildlife Preservation
1	6% Decrease	Low	Low
2	3% Decrease	Low	Moderate
3	No Change	Moderate	Moderate
4	3% Increase	Moderate	High
5	6% Increase	High	High

	Operational Cost	Image	Wildlife Preservation	Recreational Opportunity
1	6% Decrease	Low	Low	Low
2	3% Decrease	Moderate	Moderate	Low
3	No Change	Moderate	Moderate	Moderate
4	3% Increase	High	Moderate	High
5	6% Increase	High	High	High

III. Demographic Information:

1. Gender: M or F

2. Age: ______

3. Residence: Municipality ______ State ______

4. Occupation: _________________

5. Recreational time spent in the northeast: ________

6. Are you a member of an environmental group: Y or N

7. Do you pay your utility bill: Y or N

Home - Market Failures - Conjoint Analysis - Policy Options