Residents' willingness to pay for improved liquid waste treatment in urban Ethiopia: results of choice experiment in Addis Ababa

This paper discusses residents’ willingness to pay (WTP) for improved liquid waste treatment in Addis Ababa based on data collected in 2011 using random parameter logit model. Findings indicate that respondents are willing to contribute for improved liquid waste treatment with higher quantity and quality. Their mean WTP for the medium improvement scenario is found to be 15.53 ETB (0.93 USD) per month. The compensation surplus tends to increase from the status quo to the alternative scenarios with aggressive improvement. Finally, the paper concludes by indicating the socioeconomic difference across households, and sub-cities need to be considered in designing environmental protection plans for the city.     

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).     

ECONOMIC VALUATION OF RIPARIAN BUFFER AND OPEN SPACE IN A SUBURBAN WATERSHED1

Abstract: This study evaluates the economic value of riparian buffers and open space in a suburban watershed through two nonmarket valuation methods. A contingent valuation survey was implemented in the Dardenne Creek watershed, a suburban watershed of the St. Louis metropolitan area in Missouri, to evaluate the residents' perceptions of and willingness to pay (WTP) for adopting riparian buffers and preserving farmland in a hypothetical real estate market. A hedonic pricing model based on actual sale prices of homes in the watershed was applied to estimate the market value of open space and other environmental conditions such as flood zone and stream proximity in the study area. The results showed that residents' WTP was consistent with the economic values of open space and proximity to streams embedded in existing home prices. Through a better understanding of residents' perceptions and values, riparian buffer and open space programs can be designed and promoted to achieve greater implementation success and environmental benefit.     

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).     

Can you be bothered? The role of participant motivation in the valuation of species conservation measures

Group-based approaches to the elicitation of stated preferences are considered particularly suitable for valuing unfamiliar or complex environmental goods. While such exercises provide participants with detailed information and time to think and deliberate, they require a considerable degree of motivation from the respondents. Effects of motivation on willingness to pay (WTP) tend to be ignored within the valuation research community, although similar effects have been reported in psychological literature. In this study, a novel approach using video recordings and behaviour coding of participants in group-based Market Stall meetings was employed to measure motivation as well as its impact on WTP and the theoretical and convergent validity of stated WTP. Indicators of motivation correlated significantly with both WTP statements and their validity, with more motivated individuals stating higher and more valid bids. These findings suggest that the recognition of motivation is an important novel element of research into stated preferences, particularly with respect to usefulness and quality of WTP measures.     

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.     

Tourist Support for Marine Protection in Nha Trang,Viet Nam

Environmental planners often propose tourism as a means of financing programmes to protect significant environmental areas. Surveys of tourists can provide useful information about the significance of environmental problems, trade-offs among policy objectives, willingness to pay (WTP) for protection programmes and preferences for different payment mechanisms. In Khanh Hoa Province, the provincial People's Committee, the Ministry of Fisheries and the World Conservation Union are working to implement Viet Nam's first marine protected area (MPA) in Nha Trang Bay. This paper reports the results of a survey of local and other Vietnamese and foreign tourists to islands that will be included in the MPA. The majority of respondents thought rubbish on the beaches, water pollution and vendors on beaches were problems and that the MPA was a good idea. Foreign tourists were significantly more likely to perceive environmental problems than were Vietnamese tourists, and persons who agreed there were environmental problems were significantly more likely to support the concept of an MPA, despite the potential for possible economic effects with distributive consequences. WTP for protection was modest and positively correlated with education and income. Although foreign tourists were on average willing to pay more, a larger proportion of Vietnamese tourists were willing to pay some amount to support the MPA. Analyses indicate that changes in income and education expected with economic development will increase both awareness of problems and WTP for protection. The results of this analysis are both encouraging and cautionary. The need for an MPA is clearly recognized by most tourists, and most tourists are willing to pay small fees to support the MPA. Given that education has significant impacts on both perceptions of problems and WTP, educational programmes may be an effective strategy for managing the competing objectives of protection and use.     

ARE RURAL RESIDENTS WILLING TO PAY ENOUGH TO IMPROVE DRINKING WATER QUALITY?1

ABSTRACT: The concentrations of iron and sulfate in community water supplies are a concern for a number of areas in southwestern Minnesota. This study used the contingent valuation method to determine how much consumers would be willing to pay to improve their drinking water quality. On average, individuals were willing to pay US$5.25 per month (in 1995 U.S. dollars) to reduce the level of iron and US$4.33 per month to reduce the level of sulfate in their water to the USEPA's secondary standards for drinking water quality. Respondents with negative perceptions of their drinking water quality were willing to pay more to improve water quality. The aggregate annual willingness to pay (WTP) for all consumers in community water systems in southwestern Minnesota that were out of compliance with water quality standards were estimated to be US$2.4 million and US$2.0 million (in 1995 dollars) for reducing the levels of iron and sulfate, respectively. Yet the total WTP of consumers who use small community water systems may not be enough to pay the full cost of providing improved water in those systems. Economies of scale in water treatment and difficulties in financing improvements mean that technical innovation, government assistance, or institutional changes may be needed to improve water quality in these areas.     

Integrating nature-based tourism and forestry in private lands under heterogeneous visitor preferences for forest attributes

Developing nature-based tourism in private lands calls for new mechanisms to consolidate the interests of the tourism industry, visitors, and landowners. This choice experiment study elaborates on the heterogeneity of visitors’ preferences and willingness to pay (WTP) for enhanced forest amenities and ecosystem services. The survey, targeting domestic and foreign tourists visiting the Ruka-Kuusamo area in Finland, considered four attributes: landscape quality, outdoor routes, forest biodiversity, and carbon sequestration. For observed heterogeneity, the visitors were grouped by their attitudes towards forest management. Unobserved heterogeneity in visitors’ choice behaviour and WTP was examined with the latent class model. While most visitors had environmentally friendly attitudes and were willing to pay, especially for enhanced landscape quality and biodiversity, considerable heterogeneity was revealed in terms of three segments with distinctive attitudes, choice behaviour and WTP. The variation in WTP has important implications for the design of a scheme of payments for environmental management.     

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.     

Scope effects of respondent uncertainty in contingent valuation: evidence from motorized emission reductions in the city of Nairobi,Kenya

This study analyzed the scope effects of respondent uncertainty in contingent valuation (CV) by evaluating whether willingness to pay (WTP) estimates were sensitive to changes in the magnitudes of motorized emission reductions in the city of Nairobi, Kenya. The WTP estimates were elicited through the conventional payment card (PC), stochastic payment card (SPC) and the polychotomous payment card (PPC) formats. While SPC and PPC formats were used to capture respondent uncertainty, the PC format captured respondent certainty regarding the amounts individuals were WTP for emission reductions. Based on parametric and nonparametric analysis, results show that certain (PC) respondents stated significantly larger WTP amounts for larger emission reductions than for smaller reductions. Conversely, uncertain (SPC and PPC) respondents stated smaller amounts for larger emission reductions than certain (PC) respondents. The implication is that though respondents were sensitive to the scope of motorized emission reductions, respondent uncertainty lowered their sensitivity to scope.     

Information and Willingness to Pay in a Contingent Valuation Study: The Value of S. Erasmo in the Lagoon of Venice

This paper reports on a contingent valuation (CV) study eliciting willingness to pay (WTP) for a public program for the preservation of lagoon, beach and infrastructure in the island of S. Erasmo in the Lagoon of Venice, Italy. We use split samples to investigate the effect of providing a summary of reasons for voting in favor and against the program before the referendum valuation question. Reminding respondents of the reasons for voting for or against the program increases WTP among less highly educated respondents, and decreases WTP among more highly educated respondents.     

WILLINGNESS TO PAY FOR FLOOD RISK REDUCTION AND ITS DETERMINANTS IN JAPAN1

ABSTRACT: This study aimed to clarify public preferences for flood control measures in Japan, willingness to pay (WTP), and the main factors involved in WTP by applying the contingent valuation method. Findings showed that most residents surveyed expected some flood control measures, and revealed a diversity of interest in river management. WTP levels for different measures ranged from a mean of ¥2,887 to ¥4,861 and from a median of ¥1,000 to ¥2,000. However, WTP for additional flood risk reduction beyond initial levels was found to be zero. This was considered to be because WTP for flood risk reduction must be determined within a multi‐risk context. WTP for flood control measures may increase with per capita income, individual preparedness, and/or experience with flooding, but may decrease with distance from a river, acceptability of flood risk, and provision of environmental information. Furthermore, perception of flood risk may increase WTP, while perception of other risks may decrease it. Methods of dealing with environmental risk that were proposed in the survey may have affected WTP levels.     

Hypothetical and Real Economic Commitments,and Social Status,in Valuing a Species Protection Programme

There has been a long-running debate on the reliability and validity of the contingent valuation method, connected with the hypotheticality of the situation when respondents are asked to state their willingness to pay (WTP) for species protection (the so-called 'hypothetical bias'). Additionally, a number of recent arguments regarding donations to good causes and the benefits of achieving social status have questioned the motives of respondents who have stated their WTP. An experiment at the University of Klagenfurt tested for hypothetical bias by asking participants to state their hypothetical and real WTP for a species protection programme in the Hohe Tauern national park. Hypothetical and real WTP differed significantly. Additionally, it emerged that the pure ecological motive for stating a WTP might be concealed by arguments about donating in order to achieve social status and contributing to a good cause.     

Assessing Public Preferences for Forest Biomass Based Energy in the Southern United States

This article investigated public preferences for forest biomass based liquid biofuels, particularly ethanol blends of 10% (E10) and 85% (E85). We conducted a choice experiment study in three southern states in the United States: Arkansas, Florida, and Virginia. Reducing atmospheric CO₂, decreasing risk of wildfires and pest outbreaks, and enhancing biodiversity were presented to respondents as attributes of using biofuels. Results indicated that individuals had a positive extra willingness to pay (WTP) for both ethanol blends. The extra WTP was greater for higher blends that offered larger environment benefits. The WTPs for E10 were $0.56 gallon^?1, $0.58 gallon^?1, and $0.48 gallon^?1, and for E85 they were $0.82 gallon^?1, $1.17 gallon^?1, and $1.06 gallon^?1 in Arkansas, Florida, and Virginia, respectively. Although differences in WTP for E10 were statistically insignificant among the three states, significant differences were found in the WTP for E85 between AR and FL and between AR and VA. Preferences for the environmental attributes appeared to be heterogeneous, as respondents’ were willing to pay a premium for E10 in all three states to facilitate the reduction of CO₂ and the improvement of biodiversity but were not willing to pay more for E85 in order to enhance biodiversity.     

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.     

Economic valuation of urban forest benefits in Finland

Urban development projects may cause loss of amenity values of green areas, which should be taken into consideration in planning. Therefore, quantitative information on residents' valuation concerning urban forests is needed for assessing urban land use. The purpose of this investigation was to study the valuation of urban forests in two different urban environments Joensuu and Salo, Finland. The aims were to study the attitudes towards and benefits related to the use of urban forests and, in particular, to measure the valuations in monetary terms using contingent valuation, i.e. measure the residents' willingness-to-pay for larger wooded recreation areas and for small forested parks. Urban forests were seen in both towns as clearly producing positive benefits rather than causing negative effects. The negative features of forests were related to the management of the areas rather than their existence. The main values were related to nature and social functions of forests. In contrast, timber production achieved a distinctively low priority in both study towns. The results stress the importance of defining urban forest policies for municipalities in Finland. More than two-thirds of the respondents were willing to pay for the use of recreation areas. Good location and active management raised the average WTP. Moreover, approximately half of the respondents were willing to pay for preventing construction in urban forests. The results also show that the monetary value of amenity benefits in recreation areas is much higher than the present maintenance costs. The examples concerning the advantageousness of construction on green areas suggest that a limit could be found where the infill of housing areas is not worthwhile from the point of view of society, if the losses of green space benefits are taken into account.     

Exploring Values,Context and Perceptions in Contingent Valuation Studies: The CV Market Stall Technique and Willingness to Pay for Wildlife Conservation

Public preferences for conservation and environmental management may be identified in willingness to pay (WTP) studies. Normally part of a contingent valuation exercise, WTP studies elicit monetary estimates of non-market economic goods. This paper describes a new approach to WTP, the CV Market Stall, a technique that adds a discursive, qualitative dimension to contingent valuation. It is suggested that the CV Market Stall technique is a good method for exploring attitudes and responses to environmental project proposals. The flexible format, with an emphasis upon information provision, discussion and learning would also allow contingent valuation to be extended to much more complex and uncertain environmental issues.     

Impact of Socio-demographic Factors on Willingness to Pay for the Reduction of a Future Health Risk

Knowledge of socio-demographic factors affecting attitudes to and perception of risk is an important instrument in enhancing efficiencies of interventions. The authors evaluated whether socio-demographic variables affected attitudes to an environmental issue (securing future drinking water). An important aspect was the delay between time of environmental pollution and time of human exposure and thereby potential health risk. Gender, education, place of residence and age all influenced the extent to which individuals were willing to allocate present resources to alleviate a future problem. Specifically, people above the age of 50 appeared more reluctant to pay for an intervention against a future potential health threat. The authors found a significant correlation between attitude and willingness to pay (WTP). In the authors' scenarios, the WTP variable worked more as a dichotomous variable than as a continuous variable, stressing the importance and relevance of the WTP=0 answers.