Explanatory variable Notation Description Expected sign RationaleBid BID Takes on the values of Php25, Php50, Php100, Php200, and Php300 — As the price of the good increases, the less will be the likelihood of payingHousehold income per capita INC Monthly household income divided by the household size + As the income increases, the greater the likelihood of payingExposure EXP Number of floods inun- dating house in the last 10 years + As exposure to flooding becomes greater, the greater the likelihood of payingKnowledge about early warning system KNOW Dummy, if self-rating on knowledge is above 2, the variable takes on the value of 1; 0 if below 3 + The more aware and knowledgeable a house- hold is about the early warning system, the greater the likelihood of payingAutonomous adaptation RISK Dummy, if household has undertaken any form of autonomous adaptation, the variable takes on the value of 1; 0 if otherwise + Autonomous adaptation may be an indicative of risk aversion. Risk- averse households will be more likely to be willing to pay
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