A note on the warm glow of giving and scope sensitivity in contingent valuation studies

This note develops a behavioral framework to classify individual contingent valuation (CV) respondents in terms of the warm glow and altruistic motives in their WTP responses. We suggest that at least five possible behavioral categories for CV responses may exist, depending on the type of underlying preferences and whether respondents are satiated or non-satiated with respect to the good. An empirical example suggests that the warm glow motive may be present in the majority of bids, although its presence does not necessarily preclude scope sensitivity to the quantity/quality of an environmental good. (C) 2000 Elsevier Science B.V. All rights reserved.

Exploring divergence between respondent and researcher definitions of the good in contingent valuation studies

In Contingent Valuation studies, researchers often base their definition of the environmental good on scientific/expert consensus. However, respondents may not hold this same commodity definition prior to the transaction. This raises questions as to the potential for staging a satisfactory transaction, based on Fischoff and Furby's (1988) criteria. Some unresolved issues regarding the provision of information to respondents to facilitate such a transaction are highlighted. In this paper, we apply content analysis to focus group discussions and develop a set of rules which take account of the non-independence of group data to explore whether researcher and respondents' prior definitions are in any way similar. We use the results to guide information provision in a subsequent questionnaire.

Exclusion criteria in national health state valuation studies : a systematic review

BACKGROUND: Health state valuation data are often excluded from studies that aim to provide a nationally representative set of values for preference-based health-related quality of life (HRQoL) instruments. The purpose was to provide a systematic examination of exclusion criteria used in the derivation of societal scoring algorithms for preference-based HRQoL instruments. METHODS: Data sources included MEDLINE, official instrument websites, and publication reference lists. Analyses that used data from national valuation studies and reported a scoring algorithm for a generic preference-based HRQoL instrument were included. Data extraction included exclusion criteria and associated justifications, exclusion rates, the characteristics of excluded respondents, and analyses that explored consequential implications of exclusion criteria on the respective national tariff. RESULTS: Seventy-six analyses (from 70 papers) met the inclusion criteria. In addition to being excluded for logical inconsistencies, respondents were often excluded if they valued fewer than 3 health states or if they gave the same value to all health states. Numerous other exclusion criteria were identified, with varying degrees of justification, often based on an assumption that respondents did not understand the task or as a consequence of the chosen statistical modeling techniques. Rates of exclusion ranged from 0% to 65%, with excluded respondents more likely to be older, less educated, and less healthy. Limitations included that the database search was confined to MEDLINE; study selection focused on national valuation studies that used standard gamble, time tradeoff, and/or visual analog scale techniques; and only English-language studies were included. CONCLUSION: Exclusion criteria used in national valuation studies vary considerably. Further consideration is necessary in this important and influential area of research, from the design stage to the reporting of results.

Tropical river fisheries valuation: background papers to a global synthesis

This report is a compilation of five regional reviews that document the global status of tropical rivers and inland fisheries in three continents: Latin America, Africa and Asia. It explores the role of ‘valuation’ methods and their contribution to policy-making and river fishery management. From the compilation, the best estimate of the global value of inland fisheries for those three continents is US$ 5.58 billion (gross market value), which is equivalent to 19 percent of the current value of annual fish exports from developing countries (US$ 29 billion) for 2004. The compilation shows that there is a general shortage of information on inland fisheries, especially derived from conventional economic valuation methods, though information from economic impact assessment methods and socio-economic and livelihood analysis methods is more widely available. The status of knowledge about the impact of changes in river management on the value of tropical river fisheries is weak and patchy. Although the impacts of large dams on the hydrology, ecology and livelihood support attributes of tropical rivers are well-recognized, there have been only few valuation studies of these issues. The document highlights the need for further valuation studies of tropical river and inland fisheries in developing countries. It underlines how vital it is for policy-makers and other stakeholders to understand the importance of these natural resources in order to make appropriate decisions concerning their role in development policy and illustrates why capacity building in valuation should become a major priority for agencies concerned with fisheries management and policy-making.

Review of river fisheries valuation in West and Central Africa

This paper provides a review of the valuation of river fisheries in West and Central Africa. It is the general perception that, compared to the biological and ecological aspects of river fisheries, this particular subject area has received relatively little attention. Economic valuation is concerned with finding expression for what is important in life for human society. It should, therefore, be a central and integral part of government decision-making and policy. The review started with concepts and methods for valuation. Three main types of valuation techniques were identified: conventional economic valuations, economic impact assessments and socioeconomic investigations, and livelihood analysis. On the basis of a literature review, valuation information was then synthesized for the major regional river basins and large lakes, and also used to develop a series of national fisheries profiles. To supplement this broad perspective, a series of case studies are also presented, which focus in particular on the impact of changes in water management regime. Finally, the paper presents an assessment of the three main types of valuation methodology and a set of conclusions and recommendations for future valuation studies.

Economic Valuation of Ecosystem Services: Conflicts in Classification

4 p.

Classifying Ecosystem Services for Economic Valuation: The case of forest water services

30 p.

The complexity of biodiversity: A biological perspective on economic valuation

To value something, you first have to know what it is. Bartkowski et al. (2015) reveal a critical weakness: that biodiversity has rarely, if ever, been defined in economic valuations of putative biodiversity. Here we argue that a precise definition is available and could help focus valuation studies, but that in using this scientific definition (a three-dimensional measure of total difference), valuation by stated-preference methods becomes, at best, very difficult.We reclassify the valuation studies reviewed by Bartkowski et al. (2015) to better reflect the biological definition of biodiversity and its potential indirect use value as the support for provisioning and regulating services. Our analysis shows that almost all of the studies reviewed by Bartkowski et al. (2015) were not about biodiversity, but rather were about the 'vague notion' of naturalness, or sometimes a specific biological component of diversity. Alternative economic methods should be found to value biodiversity as it is defined in natural science. We suggest options based on a production function analogy or cost-based methods. Particularly the first of these provides a strong link between economic theory and ecological research and is empirically practical. Since applied science emphasizes a scientific definition of biodiversity in the design and justification of conservation plans, the need for economic valuation of this quantitative meaning of biodiversity is considerable and as yet unfulfilled.

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

Benefits from safer animal food products: preliminary results from a contingent valuation study of Italian households

The social cost of food scares has been the object of substantial applied research worldwide. In Italy, meat and dairy products are often the vectors of food-borne pathogens, and this is well known by the public. Most cases of food contamination and poisoning find their causes in the way food is handled after, rather than before purchase. However, a large fraction is still caused by mishandling at the industrial stage. With this in mind, we set out to estimate Italian households’ willingness to pay (WTP) for a reduction in the risk of meat and dairy food contamination using contingent valuation. The survey design incorporated features specifically conceived to overcome difficulties faced in previous survey research, especially with respect to individualized food expenditures and risk communication. In order to achieve this objective a CAPI (computer-assisted personal interview) survey was devised to tackle two major issues which emerged in previous contingent valuation studies. The first issue is connected to the way of communicating risk to consumers in order to allow them to make optimal choices and the second one to the results deriving from these studies. In fact, estimates from contingent valuation regarding food safety are given just for single products and so marketers may find it hard to extrapolate them to the aggregate. Our results show that in Italy there are segments of consumers who would benefit from higher standards of food safety for farm animal products.

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

Includes bibliography

Empirical Evidence Showing The Relationships Between Three Approaches for Pollution Control

Willingness to pay models have shown the theoretical relationships between the contingent valuation, cost of illness and the avertive behaviour approaches. In this paper, field survey data are used to compare the relationships between these three approaches and to demonstrate that contingent valuation bids exceed the sum of cost of illness and the avertive behaviour approach estimates. The estimates provide a validity check for CV bids and further support the claim that contingent valuation studies are theoretically consistent.

Economic analyses and policy implications for microalgae biofuels in Australia

The benefits of microalgae biofuels over first and second generation counterparts suggest it has potential as a major biofuel feedstock in Australia. However, the high costs of cultivation and processing has been a major drawback for investors and policymakers. This presentation outlines the economic potential for microalgae biofuels: firstly, through production of microalgae co-products (e.g feed and fertiliser); and secondly, deriving what consumers are willing to pay for microalgae biofuels based on external benefits. These findings will assist decision-makers in both private and public sectors and inform policy development with respect to microalgae as a feedstock for biofuels and other products. This study adds an economics perspective to the current technical literature which has been dominated by biochemical, engineering and financial valuation studies.

Non-governmental organizations and multi-sited marine conservation science: A case study

Non-governmental organizations (NGOs) are now major players in the realm of environmental conservation. While many environmental NGOs started as national organizations focused around single-species protection, governmental advocacy, and preservation of wilderness, the largest now produce applied conservation science and work with national and international stakeholders to develop conservation solutions that work in tandem with local aspirations. Marine managed areas (MMAs) are increasingly being used as a tool to manage anthropogenic stressors on marine resources and protect marine biodiversity. However, the science of MMA is far from complete. Conservation International (CI) is concluding a 5 year, $12.5 million dollar Marine Management Area Science (MMAS) initiative. There are 45 scientific projects recently completed, with four main “nodes” of research and conservation work: Panama, Fiji, Brazil, and Belize. Research projects have included MMA ecological monitoring, socioeconomic monitoring, cultural roles monitoring, economic valuation studies, and others. MMAS has the goals of conducting marine management area research, building local capacity, and using the results of the research to promote marine conservation policy outcomes at project sites. How science is translated into policy action is a major area of interest for science and technology scholars (Cash and Clark 2001; Haas 2004; Jasanoff et al. 2002). For science to move policy there must be work across “boundaries” (Jasanoff 1987). Boundaries are defined as the “socially constructed and negotiated borders between science and policy, between disciplines, across nations, and across multiple levels” (Cash et al. 2001). Working across the science-policy boundary requires boundary organizations (Guston 1999) with accountability to both sides of the boundary, among other attributes. (Guston 1999; Clark et al. 2002). This paper provides a unique case study illustrating how there are clear advantages to collaborative science. Through the MMAS initiative, CI built accountability into both sides of the science-policy boundary primarily through having scientific projects fed through strong in-country partners and being folded into the work of ongoing conservation processes. This collaborative, boundary-spanning approach led to many advantages, including cost sharing, increased local responsiveness and input, better local capacity building, and laying a foundation for future conservation outcomes. As such, MMAS can provide strong lessons for other organizations planning to get involved in multi-site conservation science. (PDF contains 3 pages)