Estimating the demand curve for sustainable use of pesticides from contingent-valuation data

Stated-preference valuation techniques are often used to assess consumers' willingness-to-pay for food items produced in farming systems that adopt a sustainable use of pesticides (SUP). We propose an innovative valuation methodology in which dichotomous-choice contingent valuation is used to estimate the demand curve (price-quantity relationship) for such food items where price means price premium for the SUP output, quantity is the probability of choosing SUP and the conventional food product is kept available in the market at the current market price. This methodology can be used to evaluate market differentiation as a policy option to promote the SUP. The methodology is tested with data from a sample of urban consumers of fruits and vegetables in Portugal. The estimated demand curve is used to define the price level maximizing the total premium revenue for the SUP sector as a whole. This optimal level of the price premium is €77.55 (or 163% of the value of the monthly basket of fruits and vegetables at current prices). Adopting the optimal price premium will decrease the number of consumers of SUP food by 54%. The reduction is even higher for low income consumers (80%) leaving them more exposed to the risks of pesticide use.

Valuation of hospital bed-days released by infection control programs: A comparison of methods

We performed a contingent valuation survey to elicit the opportunity cost of bed-days consumed by healthcare-associated infections in 11 European hospitals. The opportunity cost of a bed-day was significantly lower than the accounting cost; median values were i72 and i929, respectively (P ! .001). Accounting methods overestimate the opportunity cost of bed-days...

Recreational anglers' valuation of near-shore marine fisheries in Florida

This report describes and summarizes the results from a state-wide survey of Florida resident saltwater anglers. The survey was designed to provide estimates of the economic value anglers place on marginal changes in management of selected near-shore marine species. The Contingent valuation method was used to elicit angler willingness to pay for changes in management for redfish, seatrout , mullet, sheepshead, pompano. and king mackerel. Contingent valuation is a process in which respondents are presented with a detailed scenario that describes an opportunity to express their willingness to pay for a proposed change in current conditions. The process consists of three parts. First. the change in current conditions, or the "good" to be valued is described. Second, the payment method is described. The payment method is usually closely related to typical methods of buying goods similar to the one to be valued. Finally. the respondent is asked how much they would pay for the good described in the scenario. A special saltwater fishing license stamp that would allow the holder to take advantage of the described management change was used as a payment mechanism. (PDF contains 147 pages.)

Economic valuation of natural resources: a handbook for coastal resource policymakers

Professionals who are responsible for coastal environmental and natural resource planning and management have a need to become conversant with new concepts designed to provide quantitative measures of the environmental benefits of natural resources. These amenities range from beaches to wetlands to clean water and other assets that normally are not bought and sold in everyday markets. At all levels of government — from federal agencies to townships and counties — decisionmakers are being asked to account for the costs and benefits of proposed actions. To non-specialists, the tools of professional economists are often poorly understood and sometimes inappropriate for the problem at hand. This handbook is intended to bridge this gap. The most widely used organizing tool for dealing with natural and environmental resource choices is benefit-cost analysis — it offers a convenient way to carefully identify and array, quantitatively if possible, the major costs, benefits, and consequences of a proposed policy or regulation. The major strength of benefit-cost analysis is not necessarily the predicted outcome, which depends upon assumptions and techniques, but the process itself, which forces an approach to decision-making that is based largely on rigorous and quantitative reasoning. However, a major shortfall of benefit-cost analysis has been the difficulty of quantifying both benefits and costs of actions that impact environmental assets not normally, nor even regularly, bought and sold in markets. Failure to account for these assets, to omit them from the benefit-cost equation, could seriously bias decisionmaking, often to the detriment of the environment. Economists and other social scientists have put a great deal of effort into addressing this shortcoming by developing techniques to quantify these non-market benefits. The major focus of this handbook is on introducing and illustrating concepts of environmental valuation, among them Travel Cost models and Contingent Valuation. These concepts, combined with advances in natural sciences that allow us to better understand how changes in the natural environment influence human behavior, aim to address some of the more serious shortcomings in the application of economic analysis to natural resource and environmental management and policy analysis. Because the handbook is intended for non-economists, it addresses basic concepts of economic value such as willingness-to-pay and other tools often used in decision making such as costeffectiveness analysis, economic impact analysis, and sustainable development. A number of regionally oriented case studies are included to illustrate the practical application of these concepts and techniques.

A Holistic vs. an Attribute-based Approach to Agri-Environmental Policy Valuation: Do Welfare Estimates Differ?

Different economic valuation methodologies can be used to value the non-market benefits of an agri-environmental scheme. In particular, the non-market value can be examined by assessing the public's willingness to pay for the policy outputs as a whole or by modelling the preferences of society for the component attributes of the rural landscape that result from the implementation of the policy. In this article we examine whether the welfare values estimated for an agri-environmental policy are significantly different between an holistic valuation methodology (using contingent valuation) and an attribute-based valuation methodology (choice experiment). It is argued that the valuation methodology chosen should be based on whether or not the overall objective is the valuation of the agri-environment policy package in its entirety or the valuation of each of the policy's distinct environmental outputs.

Évaluation économique des services écosystémiques dans la région de Montréal : analyse spatiale et préférences exprimées

Les services écosystémiques (SE) réfèrent aux bénéfices que produisent et soutiennent la biodiversité et les écosystèmes et qui profitent à l’être humain. Dans beaucoup de cas, ils ne sont pas pris en compte dans le système économique. Cette externalisation des SE engendre des décisions sur l’utilisation du territoire et des ressources naturelles qui ignorent leur contribution à la qualité de vie des communautés. Afin notamment de sensibiliser l’opinion publique à l’importance des SE et de mieux les intégrer dans les processus décisionnels, ont été développées des démarches d’évaluation économique des SE. Dans cette thèse, nous avons cherché à comprendre à la fois comment l’utilisation passée et actuelle des sols dans la région de Montréal affecte la valeur des SE et comment ces aménités naturelles sont perçues et valorisées par la population, dans une perspective d’aménagement futur du territoire. Pour ce faire, nous avons utilisé deux approches : l’analyse spatiale recourant aux systèmes d’information géographique et l’analyse des préférences exprimées par des techniques d’enquête. Pour l’analyse spatiale, nous avons combiné des analyses cartographiques à des valeurs monétaires associées aux SE publiées dans la littérature. Nous avons alors estimé la valeur des écosystèmes d’un territoire par le transfert de bénéfices, de prix de marchés directs et de coûts évités. Cette démarche nous a permis de comprendre la relation entre l’utilisation actuelle du territoire du Grand Montréal écologique et la valeur des services fournis par les écosystèmes, que nous avons estimée à 2,2 milliards de dollars par année. Elle nous a permis aussi de mesurer les effets sur la valeur des SE du changement d’utilisation des sols entre les années 1960 et 2010. Nous avons montré que malgré différentes politiques de contrôle et d’encadrement de l’étalement urbain au cours de cette période, les pertes économiques non marchandes liées aux SE s’élèvent à 236 millions de dollars par année. Pour l’analyse des préférences exprimées, nous avons utlilisé deux méthodes, l’évaluation contingente et le choix multi-attributs, avec l’objectif de mesurer le consentement à payer de répondants pour des variations dans l’aménagement du territoire. Nous avons montré d’une part que les répondants valorisent significativement l’incidence des pratiques agro-environnementales sur la qualité de l’environnement et des paysages en consentant à payer entre 159 et 333 dollars par ménage par année pour une amélioration de la diversité du paysage agricole. D’autre part, leur volonté à payer pour l’amélioration de l’état des milieux humides du Québec est estimée entre 389 et 455 dollars par ménage par année. L’utilisation conjointe des deux méthodes nous a permis d’en comparer les résultats. Nous avons en outre démontré que le choix du format de question de valorisation de l’évaluation contingente affecte la convergence des résultats. Enfin, nous avons proposé des pistes de recherches futures portant sur l’intégration des démarches d’analyse biophysique, économique et politique dans des outils de prise de décision mieux adaptés à la dynamique des écosystèmes, de la biodiversité et des communautés humaines.

Economic Valuation of Coastal Wetlands: A Study of Cochin Back waters in Kerala

The major objective of this chapter was to estimate the indirect benefits provided by the Cochin wetlands to direct, indirect and non-user populations.This chapter gives the details of the Contingent valuation survey that was executed in the study area. Section one described the actual survey and its execution. Section two undertook a detailed discussion of the methodological issues involved in the survey. Section three contained some discussion on the study.This analysis has demonstrated the feasibility of extending the use of contingent valuation methods to local populations in developing countries like India. Certain issues emerge from these applications. Income is strongly related to willingness to pay in these surveys, yet income levels are often low.Secondly, education is not a factor that influences willingness to pay in the coastal belt very much. Rather, relation of individual occupation to any wetland based activity very much influenced their willingness to pay. The study revealed that people very much valued the indirect function performed by wetlands, in fact as much as they valued the direct benefits provided by the system. There still exist differences of opinions among experts when undertaking such valuation studies. However, in the absence of a better technique for valuing environmental services that have no markets, this is definitely a first step

Economic valuation of an offshore wind farm in Greece: the role of individual’s base-state influences and beliefs in the value formation process

The increased concern for the impacts of climate change on the environment, along with the growing industry of renewable energy sources, and especially wind power, has made the valuation of environmental services and goods of great significance. Offshore wind energy is being exploited exponentially and its importance for renewable energy generation is increasing. We apply a double-bound dichotomous Contingent Valuation Method analysis in order to both a) estimating the Willingness to Pay (WTP) of Greek residents for green electricity produced by offshore wind farm located between the islands of Tinos and Andros and b) identifying factors behind respondents’ WTP including individual’s behaviour toward environment and individual’s views on climate change and renewable energy. A total of 141 respondents participated in the questionnaire. Results show that the respondents are willing to pay on average 20€ every two months through their electricity bill in return for carbon-free electricity and water saving from the wind farm. Respondents’ environmental consciousness and their perception towards climate change and renewable energy have a positive effect on their WTP.

Economic valuation of the Emas waterfall, Mogi-Guaçu River, SP, Brazil

A Cachoeira de Emas, no Rio Mogi-Guaçu, é reconhecida regionalmente como um importante local para a pesca e o turismo. Os primeiros registros da pesca profissional e esportiva no local datam da década de 30, que é o mesmo período em que a atividade do turismo teve seu início. O presente artigo fornece uma valoração ambiental deste local e identifica as diferenças entre os principais grupos de pessoas que o frequentam. Durante o ano de 2006 nós entrevistamos 33 pescadores profissionais, 107 pescadores esportivos, 45 turistas e 103 excursionistas para estimar a Disposição a Pagar ( P) de cada categoria e para analisar a influência de fatores socioeconômicos através de regressões logísticas e ANCOVAs. A DAP dos pescadores profissionais foi significativamente influenciada pela idade e escolaridade e a DAP dos pescadores esportivos foi significativamente influenciada pela renda familiar. As variáveis que influenciaram a DAP dos turistas e excursionistas fora o sexo e a escolaridade. valor anual total agregado para manter a Cachoeira nas condições atuais foi estimado em US$ 81.080,00, e US$ 44.055.911,46 para recuperá-la.

Non-market valuation of natural and environmental resources in Central America and the Caribbean

Includes bibliography

Random error in willingness to pay measurement: A multiple indicators, latent variable approach to the reliability of contingent values

The reliability of measurement refers to unsystematic error in observed responses. Investigations of the prevalence of random error in stated estimates of willingness to pay (WTP) are important to an understanding of why tests of validity in CV can fail. However, published reliability studies have tended to adopt empirical methods that have practical and conceptual limitations when applied to WTP responses. This contention is supported in a review of contingent valuation reliability studies that demonstrate important limitations of existing approaches to WTP reliability. It is argued that empirical assessments of the reliability of contingent values may be better dealt with by using multiple indicators to measure the latent WTP distribution. This latent variable approach is demonstrated with data obtained from a WTP study for stormwater pollution abatement. Attitude variables were employed as a way of assessing the reliability of open-ended WTP (with benchmarked payment cards) for stormwater pollution abatement. The results indicated that participants' decisions to pay were reliably measured, but not the magnitude of the WTP bids. This finding highlights the need to better discern what is actually being measured in VVTP studies, (C) 2003 Elsevier B.V. All rights reserved.

Information, Wildlife Valuation, Conservation: Experiments and Policy

The authors use experimental surveys to investigate the association between individuals' knowledge of particular wildlife species and their stated willingness to allocate funds to conserve each. The nature of variations in these allocations between species (e.g., their dispersion) as participants' knowledge increases is examined. Factors influencing these changes are suggested. Willingness-to-pay allocations are found not to measure the economic value of species, but are shown to be policy relevant. The results indicate that poorly known species, e.g., in remote areas, may obtain relatively less conservation support than they deserve. (JEL Q51, Q57, Q58)

Essays in environmental economic valuation and decision making in the presence of an environmental disaster

The first essay developed a respondent model of Bayesian updating for a double-bound dichotomous choice (DB-DC) contingent valuation methodology. I demonstrated by way of data simulations that current DB-DC identifications of true willingness-to-pay (WTP) may often fail given this respondent Bayesian updating context. Further simulations demonstrated that a simple extension of current DB-DC identifications derived explicitly from the Bayesian updating behavioral model can correct for much of the WTP bias. Additional results provided caution to viewing respondents as acting strategically toward the second bid. Finally, an empirical application confirmed the simulation outcomes. The second essay applied a hedonic property value model to a unique water quality (WQ) dataset for a year-round, urban, and coastal housing market in South Florida, and found evidence that various WQ measures affect waterfront housing prices in this setting. However, the results indicated that this relationship is not consistent across any of the six particular WQ variables used, and is furthermore dependent upon the specific descriptive statistic employed to represent the WQ measure in the empirical analysis. These results continue to underscore the need to better understand both the WQ measure and its statistical form homebuyers use in making their purchase decision. The third essay addressed a limitation to existing hurricane evacuation modeling aspects by developing a dynamic model of hurricane evacuation behavior. A household's evacuation decision was framed as an optimal stopping problem where every potential evacuation time period prior to the actual hurricane landfall, the household's optimal choice is to either evacuate, or to wait one more time period for a revised hurricane forecast. A hypothetical two-period model of evacuation and a realistic multi-period model of evacuation that incorporates actual forecast and evacuation cost data for my designated Gulf of Mexico region were developed for the dynamic analysis. Results from the multi-period model were calibrated with existing evacuation timing data from a number of hurricanes. Given the calibrated dynamic framework, a number of policy questions that plausibly affect the timing of household evacuations were analyzed, and a deeper understanding of existing empirical outcomes in regard to the timing of the evacuation decision was achieved.