Using a choice experiment to measure the environmental costs of air pollution impacts in Seoul

Air pollution, a by-product of economic growth, has been incurring extensive environmental costs in Seoul, Korea. Unfortunately, air pollution impacts are not treated as a commercial item, and thus it is difficult to measure the environmental costs arising from air pollution. There is an imminent need to find a way to measure air pollution impacts so that appropriate actions can be taken to control air pollution. Therefore, this study attempts to apply a choice experiment to quantifying the environmental costs of four air pollution impacts (mortality, morbidity, soiling damage, and poor visibility), using a specific case study of Seoul. We consider the trade-offs between price and attributes of air pollution impacts for selecting a preferred alternative and derive the marginal willingness to pay (WTP) estimate for each attribute. According to the results, the households' monthly WTP for a 10% reduction in the concentrations of major pollutants in Seoul was found to be approximately 5494 Korean won (USD 4.6) and the total annual WTP for the entire population of Seoul was about 203.4 billion Korean won (USD 169.5 million). This study is expected to provide policy-makers with useful information for evaluating and planning environmental policies relating specifically to air pollution.     

Stakeholder Willingness to Pay for Watershed Restoration in Rural Bolivia1

Abstract: Two CVM surveys were administered to 211 urban households and 188 rural farmer‐irrigators in the Comarapa watershed in Bolivia, South America, to estimate stakeholder willingness to pay (WTP) for a proposed upper watershed restoration program. Mean monthly household WTP to improve drinking water was $1.95 (65% of current charges), while mean annual WTP among farmer‐irrigators to improve irrigation water was $17 per hectare (34% of current costs). Aggregated to the entire population of households and farmer‐irrigators total WTP is $77,400 per year, which is 77% of the minimum cost to implement a watershed restoration program.     

Valuation of National Park System Visitation: The Efficient Use of Count Data Models, Meta-Analysis, and Secondary Visitor Survey Data

The National Park Service (NPS) currently manages a large and diverse system of park units nationwide which received an estimated 279 million recreational visits in 2011. This article uses park visitor data collected by the NPS Visitor Services Project to estimate a consistent set of count data travel cost models of park visitor willingness to pay (WTP). Models were estimated using 58 different park unit survey datasets. WTP estimates for these 58 park surveys were used within a meta-regression analysis model to predict average and total WTP for NPS recreational visitation system-wide. Estimated WTP per NPS visit in 2011 averaged $102 system-wide, and ranged across park units from $67 to $288. Total 2011 visitor WTP for the NPS system is estimated at $28.5 billion with a 95% confidence interval of $19.7–$43.1 billion. The estimation of a meta-regression model using consistently collected data and identical specification of visitor WTP models greatly reduces problems common to meta-regression models, including sample selection bias, primary data heterogeneity, and heteroskedasticity, as well as some aspects of panel effects. The article provides the first estimate of total annual NPS visitor WTP within the literature directly based on NPS visitor survey data.     

RURAL HOUSEHOLD RESPONSE TO WATER CONTAMINATION IN WEST VIRGINIA1

ABSTRACT: About one-third of all West Virginians obtain domestic water from private water wells. In this research, mail and telephone surveys were used to investigate household responses to bacteria, mineral, and organic chemical contamination of domestic water supplies. Of households who were informed of contamination and acknowledged the problem, over 85 percent took action to avoid exposure to water contamination problems. The most common action was to clean and/or repair the water system (55.9 percent of valid surveys). Approximately 45 percent of households made investments of either a water treatment system, a new water source, or correction of contamination source. The average, annual economic cost of rural household actions was $320 for bacteria, $357 for minerals, and $1,090 for organic contamination. These economic costs represent a lower bound estimate for rural household willingness-to-pay (WTP) for a reduction in domestic water contamination from government action. On average, investment actions had lower annual economic costs than noninvestment actions of boiling and hauling water so that households who undertook investment actions in response to water contamination would have a lower WTP for government action to reduce water contamination. When effectiveness of water treatment systems was evaluated, treatment systems which require minimal household maintenance were found to reduce exposure to water contamination to safe levels as households intended when they installed the system. Treatment systems which were commonly ineffective included those which required continual maintenance (e.g., chiorinators) or were not designed to solve the contaminant problem for which they were purchased (e.g., filter systems for bacteria).     

Willingness to pay for waste management improvement in Dhaka city, Bangladesh

We employed the contingent valuation method to estimate the willingness to pay of the respondents to improve the waste collection system in Dhaka city, Bangladesh. Our objective was to estimate how WTP differs between respondents who received or did not receive door to door waste collection. The methodology consisted of asking people directly about their willingness to pay an additional waste collection service charge to cover the costs of a new waste management project. The mean value of WTP for areas that received waste collection service areas was higher than for residents of areas that did not but the difference was not statistically significant. The aggregate value of WTP of the respondents in Dhaka city was 7.6 million Taka (USD0.1 million).     

On the value of large predators in Sweden: a regional stratified contingent valuation analysis

This paper contributes with an applied policy analysis of the predator preservation policy in Sweden. We estimate the overall mean willingness to pay (WTP) for preserving the four large predators in the Swedish fauna by applying the contingent valuation method. Using survey data from 2004 we find that 50 percent of the Swedish population is willing to contribute financially toward implementation of the predator policy package, and that the estimated overall mean WTP is approximately SEK 290. Further, we test for spatial differences in attitudes and WTP and find that respondents in Stockholm have the highest overall mean WTP, while respondents living in wolf-territories have the lowest. Our mean WTP measure is flawed with upward bias, since we cannot estimate the willingness to accept for those with clearly negative preferences regarding the predator policy package (e.g. hunters). In this paper, we set their WTP equal to zero. Thus, we cannot rule out the possibility that the mean willingness to pay is, in fact, negative, i.e. the social-value of implementing the predator policy is negative. Finally, the estimates of the overall WTP are sensitive to response-uncertainty. When the respondents indicate uncertainty about their valuation, they tend to state higher values.     

A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.     

Energy analysis of nonmarket values of the Mississippi Delta

An energy analysis was used to estimate nonmarket values under various land cover scenarios in the Mississippi Delta. Land loss since 1900 has led to a decline in nonmarket values from $3.1 billion/year in 1900 to $2.5 billion in 1990, resulting in a total loss of $29.4 billion. This loss is concentrated in the Barataria-Terrebonne basins, where nonmarket value has dropped from $1.6 billion/year in 1956 to $1.3 billion/year in 1988. Although values are projected to increase in the Atchafalaya basin (from $723 million/year in 1988 to $756 million/year in 2058), total nonmarket value for the Louisiana coast is projected to decrease to $2.1 billion/year under currently approved levels of restoration.     

国家《大气污染防治行动计划》健康效益评估

为了提高空气质量改善进程,2013 年国家发布了《大气污染防治行动计划》。本文基于空气污染与健康效益评估模型(BenMAP),对人口分布资料、大气污染与人体健康影响的暴露反应关系等进行了本土化修正,采用“支付意愿法”与“疾病成本法”相结合的方法,系统评估了《大气污染防治行动计划》实施后,PM_2.5 污染变化引起的环境健康效益。研究结果表明,《大气污染防治行动计划》的实施将在一定程度上降低PM_2.5 环境浓度,改善环境空气质量。如果《大气污染防治行动计划》空气质量目标全面实现,可以避免城镇8.9 万居民的过早死亡,减少12 万人次住院治疗以及941 万人次的门诊和急诊病例,实现的全国健康效益约为867 亿元/ 年,说明了《大气污染防治行动计划》实施的健康有益性。本文对政府部门开展污染损失评估及制定环境健康政策具有重要的参考价值。     

VISITOR VALUES AND LOCAL ECONOMIC IMPACTS OF RIPARIAN HABITAT PRESERVATION: CALIFORNIA'S KERN RIVER PRESERVE1

ABSTRACT: Preservation of the few remaining ecologically vital riparian areas in the southwestern United States is a significant policy concern. This article reports on two economic aspects of preserving a nationally renowned riparian birding area in Southern California. First, the article examines visitor willingness to pay (WTP) for habitat restoration and estimates an annual WTP of US $77 per visitor to preserve the habitat, about a half‐million dollars a year for estimated visitor numbers in 2000 and 2001. Second, it documents visitor expenditures in the local economy to be approximately three‐quarters of a million dollars per year. This direct visitor spending attributable to the riparian habitat generates around US $1.3 million in increased local business activity in this relatively remote rural area.     

A travel cost study to estimate recreational value for a bird refuge at Lake Manyas, Turkey

This paper investigates the recreational economic value of bird watching in the Ku?cenneti National Park (KNP) at Lake Manyas, one of the Ramsar sites of Turkey and an important endangered species habitat. The lake and KNP provide considerable benefits for the region, although they have faced many environmental conflicts due to diverse stakeholders’ needs. An economic valuation for the benefits provided by the KNP is important data for stakeholders and local authorities. The travel cost method is used to estimate recreational demand for the KNP. The recreational value of the KNP is 103,320,074 USD annually. Results shed light on important policy issues and help to resolve conflicts among stakeholders. This calculated value is considerably higher than the annual investment and operation expenditures of the KNP. Sustainability of the important species around the lake could be achieved if the region's inhabitants are compensated by KNP visitors.     

Valuing welfare impacts of climate change in coastal areas: a French case study

Beach protection has become a major issue in reducing coastal risks (erosion and flooding). It is thus advisable to study residents’ preferences for mitigation strategies. Willingness-to-pay (WTP) by permanent and secondary residents for flood protection provided to properties by Languedoc-Roussillon beaches (French Mediterranean coast) is investigated by a contingent valuation study. Results show that WTP is more influenced by risk perception variables than by socio-economic ones. The WTP is then extrapolated on the basis of different adaptation strategies (laissez-faire, managed retreat, denial etc.) which provided information about expected damage associated with sea level rise at the 2100 time horizon.     

Air quality assessment by contingent valuation in Ji'nan, China

Along with urbanization and environmental deterioration within China, many residents' desire for improved air quality has increased. To address this topic, this study focuses on the relationship between poor air quality and residents' willingness to pay for improved air quality in the city of Ji'nan. As a means of quantifying an individual's willingness to pay (WTP) for improved air quality, a contingent valuation method (CVM) was employed. A sample of 1500 residents was chosen, based on the stratified sampling method. The respondents' WTP was then elicited through a series of face-to-face interviews, conducted using a range of hypothetical, open-ended scenario questions. The results showed that 59.7% of respondents were able to express a positive WTP, and that the average WTP was 100 Chinese Yuan (CNY) per person, per year. In order to establish the relationship between endogenous variables and WTP, both a Probit model on the probability of a positive WTP, and a stepwise regression model were constructed. Most parameters in the econometric analysis demonstrated the expected results. It was found that annual household income, expenditure on the treatment of respiratory diseases and workers in the family significantly influenced WTP. The rates of positive WTP and the monetary amount were also larger for men than for women. Unlike developed countries, most respondents regard air quality improvement as a government responsibility in that more than 40% of respondents had no incentive to bear the costs of attempting to achieve better air quality, indicating a relatively low environmental consciousness.     

ENVIRONMENTAL AUDITING: Economic Values of Recreational Power Boating Resources in Pennsylvania

/ The travel cost method was used to estimate the economic value of seven major power boating resources in Pennsylvania. A significant relationship between number of visitor trips and cost per visitor trip existed for five of the seven water bodies. The annual total value for those five resources was $396 million, which was 2.5 times greater than the total out-of-pocket expenditures of approximately $157 million visitors spent to visit them. Research results can help resource managers plan and craft programs and policies that are founded on economic values of the natural resources involved.     

Assessing Health Benefits of Controlling Air Pollution from Power Generation: The Case of a Lignite-Fired Power Plant in Thailand

The impact pathway approach (IPA) is used to estimate quantitatively the level of health effects caused by particulate matter (PM₁₀) and sulfur dioxide (SO₂) emission from a lignite-fired power plant located in the Mae Moh area in northern region of Thailand. Health benefits are then assessed by comparing the levels of estimated health impacts without and with the installation of the flue gas desulfurization (FGD) equipment. The US EPA industrial source complex model is used to model air pollution dispersion at the local scale, and the sector average limited mixing meso-scale model is used to model air pollution transport at the regional scale. The quantification of the health end points in physical terms is carried out using the dose–response functions established recently for the population in Bangkok, Thailand. Monetarization of these effects is based on the benefit transfer method with appropriate adjustment. Finally, it has been found that the installation of the FGD to control SO₂ emission at Mae Moh significantly reduces adverse health effects not only on the population living near the power plant but also all over the country. A FGD unit installed at the 300-MW power unit can result, on average, in 16 fewer cases of acute mortality, 12 fewer cases of respiratory and cardiac hospital admissions, and almost 354,000 fewer days with acute respiratory symptoms annually. In monetary terms this benefit is equivalent to US $18.2 million (1995 prices) per annum. This benefit is much higher than the annualized investment and operation costs of FGD (US $7.4 million/yr).     

A Quantitative Method for Estimating Probable Public Costs of Hurricanes

/ A method is presented for estimating probable public costs resulting from damage caused by hurricanes, measured as local government expenditures approved for reimbursement under the Stafford Act Section 406 Public Assistance Program. The method employs a multivariate model developed through multiple regression analysis of an array of independent variables that measure meteorological, socioeconomic, and physical conditions related to the landfall of hurricanes within a local government jurisdiction. From the regression analysis we chose a log-log (base 10) model that explains 74% of the variance in the expenditure data using population and wind speed as predictors. We illustrate application of the method for a local jurisdiction-Lee County, Florida, USA. The results show that potential public costs range from $4.7 million for a category 1 hurricane with winds of 137 kilometers per hour (85 miles per hour) to $130 million for a category 5 hurricane with winds of 265 kilometers per hour (165 miles per hour). Based on these figures, we estimate expected annual public costs of $2.3 million. These cost estimates: (1) provide useful guidance for anticipating the magnitude of the federal, state, and local expenditures that would be required for the array of possible hurricanes that could affect that jurisdiction; (2) allow policy makers to assess the implications of alternative federal and state policies for providing public assistance to jurisdictions that experience hurricane damage; and (3) provide information needed to develop a contingency fund or other financial mechanism for assuring that the community has sufficient funds available to meet its obligations. KEY WORDS: Hurricane; Public costs; Local government; Disaster recovery; Disaster response; Florida; Stafford Act     

Policy evaluation of vehicle exhaust standards in Japan from 1995 to 2005 based on two human health risk indices for air pollution and global warming

Measures for vehicle exhaust emissions aimed at reducing either air pollution or global warming could have counterproductive effects on one another. Increasing diesel passenger vehicles, which generally have lower CO₂ emissions than gasoline counterparts, leads to increasing particulate matter (PM) emissions, while gasoline has lower PM emissions than diesel. It is said that stringent limits on PM emission factors discourages improved CO₂ emission factors. Without including both effects in a risk evaluation, one cannot evaluate whether the total risk is reduced or not. Hence, we evaluated representative exhaust emission measures based on risk evaluation for both air pollution and global warming. Considering consumer choice between diesel and gasoline passenger vehicles and emissions standards adopted in Japan from 1995 to 2005, we built five cases for vehicle policy evaluation. For each case, we estimated disability-adjusted life years (DALY) as an index of human health risk caused by lung cancer linked to inhalation exposure of elemental carbon in PM as well as due to global warming linked to CO₂. The results of our risk evaluation reveal that the case adopting the 2005 new long-term Japanese emission standard reduces the human health risk caused by lung cancer due to air pollution by 0.6 × 10³ DALY, but would increase the risk due to global warming by 31.9 × 10³ DALY compared with the case of adopting EURO 4, for the same conditions of passenger vehicle choice from 1995. These results suggest that the characteristics of Japanese emissions standards are mainly designed to reduce air pollution.     

Costs and benefits of improving wild salmon passage in a regulated river

This paper presents a cost-benefit analysis (CBA) of a trade-off between salmon and hydropower production in the Ume/Vindel River, northern Sweden. A distinctive element of this analysis is that estimated changes in resource conditions are based on detailed river-specific data. A salmon population model was used to develop the scenario and a novel willingness to pay (WTP) question, which caters for uncertainty in a different manner, provided an interval estimate. Non-use values are the major contributors to the benefit (96–517 millions of Swedish kronor (MSEK)) of increasing the stock of wild salmon. Sensitivity analysis suggests that the opportunity costs in terms of lost electricity are typically higher than the estimated benefits.     

Estimating the effectiveness of a vehicle miles travelled tax in reducing particulate matter emissions

This study estimates the effectiveness of a vehicle miles travelled (VMT) tax in controlling mobile-source emissions of particulate matter (PM_2.5) in a non-attainment area located in northern Utah. Using a recently updated household-level dataset, the study finds no evidence of an endogenous relationship between choice of vehicle type and VMT. VMT elasticities are also estimated with respect to cost per mile that are in some cases larger in magnitude than those reported in previous studies. Based on vehicle emissions tests performed by the Houston Advanced Research Center, the study estimates the reduction in particulate emissions that would occur with two different sets of VMT tax rates. Principal findings are that a VMT tax rate of $0.003 per passenger car mile and $0.01 per light-duty truck mile (resulting in a mean annual tax burden of $128 per household in the first year) would reduce annual particulate emissions by between 7% and 11%, depending upon the degree of heterogeneity in household driving behaviour. Assuming constant elasticity, this means that at tax rates of $0.006 and $0.02 per mile for passenger cars and light-duty trucks, respectively (resulting in double the mean annual tax burden), annual particulate emissions would be reduced by between 12% and 23%. Both the advantages and limitations of the VMT tax are discussed.     

Preventing land loss in coastal Louisiana: estimates of WTP and WTA

A dichotomous-choice contingent-valuation survey was conducted in the State of Louisiana (USA) to estimate compensating surplus (CS) and equivalent surplus (ES) welfare measures for the prevention of future coastal wetland losses in Louisiana. Valuations were elicited using both willingness to pay (WTP) and willingness to accept compensation (WTA) payment vehicles. Mean CS (WTP) estimates based on a probit model using a Box-Cox specification on income was $825 per household annually, and mean ES (WTA) was estimated at $4444 per household annually. Regression results indicate that the major factors influencing support for land-loss prevention were income (positive, WTP model only), perceived hurricane protection benefits (positive), environmental and recreation protection (positive), distrust of government (negative), age (positive, WTA model only), and race (positive for whites).