We present a demonstration of a Bayesian spatial probit model for a
dichotomous choice contingent valuation method willingness-to-pay (WTP)
questions. If voting behavior is spatially correlated, spatial
interdependence exists within the data, and standard probit models will
result in biased and inconsistent estimated nonbid coefficients. Adjusting
sample WTP to population WTP requires unbiased estimates of the nonbid
coefficients, and we find a $17 difference in population WTP per household
in a standard vs. spatial model. We conclude that failure to correctly model
spatial dependence can lead to differences in WTP estimates with potentially
important policy ramifications.