The contingent valuation method is utilized to determine the consumer surplus among Atlantic salmon anglers in the Verdal River in Norway. Structural equation modelling (SEM) and the social psychological latent constructs of place attachment, leisure motivation and catch-and-release attitudes are used to extend the assessment of construct validity in a contingent valuation study and to assess the convergent validity of using consumer surplus as an observable measure of leisure satisfaction. SEM has previously not been used in contingent valuation studies. The literature argues that determining and incorporating latent constructs simultaneously in structural models leads to efficiency, while using attitudinal items to explain latent constructs could lead to endogeneity bias. Thus, SEM can improve the efficiency of the results and prevent endogeneity bias.
In compliance with social psychological theory, the study finds that consumer surplus increases significantly with place dependency and positive catch-and-release attitudes. The results strengthen the convergent validity of using consumer surplus as a measure for leisure satisfaction. Social psychological constructs allow economists to understand more about individuals' behavior and choices. The paper thus recommends using SEM to incorporate latent constructs in structural models in contingent valuation studies. This is useful to assess the construct validity of elicited values.