Abstract
The NOAA panel suggested that use of photographs should be pre-tested to explore their effects on subjects (Arrow et al. 1993). For this paper, a modification to the test suggested by the NOAA Panel was made. We tested whether use of colored, as opposed to black and white (B & W), photographs influence respondents' valuation of the environmental commodity in question. The context of the test is a CVM study valuing the benefits from protecting the national bird. This was performed using two drop-off surveys that were identical except for the color of the photographs incorporated in the survey instrument. The dichotomous choice logit equations were statistically different between the two treatments of the questionnaire, indicating the significant effect of colored photographs on the respondents' WTP. The findings support the NOAA Panel recommendation of careful pre-testing and scrutiny of the photographs integrated in the questionnaire since 'packaging' of the environmental good (i.e., endangered species protection) matters in valuing benefits associated with it. Since colored photographs are found to be value-enhancing, to simply use B & W photos as an attempt to reduce cost associated with implementing the contingent valuation (CV) survey, especially when limited research money is involved, would result to lower the estimated value of the environmental good.