Valuation of crop genetic resources in Kaski, Nepal: farmers' willingness to pay for rice landraces conservation

Crop genetic resources constitute an important aspect of biodiversity conservation, both because of their direct value to the farmers and due to their indirect global value. This study uses the contingent valuation method to document the economic value of crop genetic resources based on the farmers' willingness to pay for conservation. A total of 107 households in Kaski, Nepal were surveyed in November 2003. Their mean willingness to pay was USD 4.18 for in situ and USD 2.20 for ex situ conservation per annum. Landholding size, household size, education level, socio-economic status, sex of respondent, number of crop landraces grown, and knowledge on biodiversity influenced the willingness to pay for in situ conservation, whereas only landholding size and household size influenced the willingness to pay for ex situ conservation. The respondents were willing to contribute more for in situ than ex situ conservation because of the additional effect of direct use and direct involvement of the farmers in in situ conservation. This study supports the view that economic valuation of crop genetic resources can assist the policy makers in setting conservation priorities.     

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.     

Alternative approaches to dealing with respondent uncertainty in contingent valuation: a comparative analysis

Several strategies have been proposed to deal with response uncertainty in contingent valuation. One approach, often applied to address issues of hypothetical bias, recodes and/or reweights responses according to stated levels of certainty but so far few analyses compare alternative recoding and reweighting strategies. We explore the choice among alternative strategies that exploit a numerical certainty scale obtained from a follow-up to the payment question in a valuation survey about a whale conservation program. Two novel variations of previously followed approaches perform best on our dataset in terms of the efficiency of estimates. The first one uses an exponential transformation of the numerical certainty scale as a weight in the willingness to pay regression. The other one is based on constructing a continuous willingness to pay variable with the highly certain "yes" and "no" original responses to the payment question as extreme values and with mid-point values that correspond to the original "don't know" responses. We find, though, that the effect of using different treatment strategies on mean willingness to pay is rarely statistically significant and we fail to detect a consistent effect on the efficiency of the estimation regardless of the strategy applied.     

ECONOMIC EVALUATION OF AESTHETIC AMENITIES: A CASE STUDY OF RIVER VIEW1

ABSTRACT: Presence of a river in an urban setting may contribute positively to an aesthetically pleasing environment. Such aesthetic effects are not typically linked to specific economic activities and occur, for example, when residents are exposed to a river-view. Qualities enhancing the aesthetic value of the river include the presence of parks, trails, and vegetation along the riverbanks. The value of aesthetic amenities provided by the South Saskatchewan to the City of Saskatoon residents was estimated in this study using non-market methods. The implicit price of the river view was estimated using the Hedonic Price Model, whereas value through willingness to pay for property taxes or higher rents were also estimated using actual market data. The total annual value of the river to the City of Saskatoon through addition of aesthetic amenities was estimated at $1.2 million in 1989 dollars.     

Analysing Conflict between Cultural Heritage and Nature Conservation in the Australian Alps: A CVM Approach

The contingent valuation method (CVM) can be useful for assessing the non-market economic values associated with government land use decisions. A particular variant of CVM, which is based on dichotomous choice responses, has become widely used. Previous studies have employed a variety of techniques for analysing dichotomous choice CVM data to produce estimates of economic welfare changes. This paper summarizes these analytical options, and illustrates their application in a case study concerning cattle grazing on the Bogong High Plains in the Australian Alps. This case study is one of the few to assess the non-market economic value of cultural heritage conservation using contingent valuation, and is also unusual in that the competing values are both non-market in character. Nature conservation and heritage values were separately measured using two independent surveys. Mean willingness to pay for nature conservation and cultural heritage were estimated using a range of parametric and nonparametric methods.     

Tourism and wetland conservation: application of travel cost and willingness to pay an entry fee at Ghodaghodi Lake Complex,Nepal

This study investigated the need and applicability of wetland tourism for resource conservation, using the case of Ghodaghodi Lake Complex, a Ramsar Site in western Nepal. The travel cost method (TCM) was used to determine the recreation potential of the lake complex, while the contingent valuation method (CVM) was used to calculate willingness of visitors to pay an entry fee as a payment vehicle for conservation. The per capita travel cost was found to be NPR 540 (US $7.71), while the mean willingness to pay an entry fee was NPR 34 (US $0.48) per visitor per entry. In addition, factors affecting wetland visitation rates and maximum willingness to pay were identified. Policy implications include the establishment of an entry fee system to offset conservation budgetary constraints, government investment in social benefits equating to at least per capita travel cost identified, and public‐private partnerships, with community participation in tourism promotion and wetland conservation.     

Estimating willingness to pay for a threatened species within a threatened ecosystem

This study conducts a choice experiment to determine the willingness to pay for Palouse Prairie conservation. The giant Palouse earthworm (Driloleirus americanus), a rare species endemic to the Palouse region, is included as an attribute of conservation and serves as a method for determining the willingness to pay for protecting the species. This method evaluates the value of the earthworm as an attribute of an overall willingness to pay for threatened ecosystem preservation rather than a direct willingness to pay for protecting the species. This method is expected to yield a more accurate measure of willingness to pay for rare species. The annual willingness to pay per household for the giant Palouse earthworm is $20.45 based on the conditional logit model and $19.30 based on the mixed logit model. Ranking and relative importance are included as methods for representing a non-monetary value and importance of the giant Palouse earthworm.     

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.     

Changes in Upland Wildlife Habitat on Farmland in Illinois 1920–1987

/ An index of upland wildlife habitat was developed to investigate patterns and changes in habitat over time, using four years (1920, 1940, 1964, 1987) and the state of Illinois as an example. The index was composed of two subdivisions that described, at the county level, the quantity of wildlife habitat and a third subdivision that described farming disturbances that impacted the quality of the habitat. Data came from the US Census of Agriculture. The first subdivision that reflected quantity of habitat was called the wildlife habitat subdivision and was the sum of percentage woodland on farms, percentage farmland in nonrow crops, and percentage farmland in set-aside programs. The second subdivision that reflected the quantity of habitat was termed the soil-related features subdivision and was the sum of the percentage of farmland that was not highly erodible, the percentage of farmland in soil-protecting crops, and the percentage of farmland in conservation tillage. The third subdivision, reflecting the quality of the habitat, was the farming disturbance subdivision and was the sum of the percentage of grazing and the percentage of land on which fertilizers, pesticides, and herbicides were applied. Overall, major decreases occurred between 1920 and 1987 in the subdivisions reflecting the quantity of wildlife habitat and a major increase occurred in the subdivision associated with farming disturbance, reflecting the intensification of agriculture in the state. However, there was variability throughout the state, with some counties being more favorable to wildlife (as measured by the subdivisions) than others. Most of the changes within the state for the subdivisions reflecting quantity of upland wildlife habitat occurred during 1940 while changes in the farming disturbance subdivision (reflecting habitat quality) occurred in 1964. By 1987, the western and southern parts of Illinois were the most favorable for wildlife as reflected in all three subdivisions. Upland wildlife harvest indices were related to the subdivisions in 1964 and 1987, when harvest indices were available. Cottontail and northern bobwhite harvests were higher in counties with higher amounts of the wildlife habitat subdivision in both years. Cottontail harvest was also higher in counties with lower levels of the farming disturbance subdivision in 1964 and higher levels of soil-related features subdivision in 1987. Indices at the county level have the potential to be used in a multiscale analysis to investigate the impact of policy changes on large-scale areas of the Midwest and to develop regional perspectives of the impacts of agriculture on upland wildlife and their habitats.KEY WORDS: Upland wildlife; Habitat; Agriculture; Illinois     

Changing abundance of elephants and willingness to pay for their conservation

This paper explores the way in which the stated willingness to pay for the conservation of Asian elephants in Sri Lanka varies with hypothetical variations in their abundance. To do that, it relies on results from a sample of residents of Colombo. The willingness to pay function is found to be unusual. It increases at an increasing rate for hypothetical reductions in the elephant population compared to its current level (a level that makes the Asian elephant endangered) and also increases at a decreasing rate for increases in this population from its current level. Rational explanations are given for this relationship. The relationship is, however, at odds with relationships suggested in some of the literature for total economic value as a function of the abundance of a wildlife species. It is suggested that willingness to pay for conservation of a species rationally includes a strategic element and may not always measure the total economic value of a species. Nevertheless, willingness to pay is still policy relevant in such cases.     

Scope insensitivity in contingent valuation of complex environmental amenities

It has been argued that respondents in contingent valuation (CV) surveys, asked to value complex environmental amenities, will state willingness to pay (WTP) independently of the scope of the project. Such insensitivity to scope would be at odds with rational choice, and could therefore imply that CV is not a theoretically valid method for biodiversity valuation. The scope test in the present CV study was applied to endangered species preservation. Respondents were split in four sub-samples facing different scopes of endangered species preservation. The design allowed for both external and internal scope tests. Furthermore, the tests were split according to elicitation format. Of four external tests of insensitivity to scope, one was rejected, two gave mixed results, depending on either the type of test or elicitation format, and for the last one the null hypothesis could not be rejected. Of five internal tests, insensitivity to scope was rejected in three cases, one test gave mixed results, and one could not be rejected. Survey design features of the CV study, especially an unfamiliar sub-group of endangered species, could explain the apparent insensitivity to scope observed.     

Social influences on expressed willingness to pay: results of a deliberative monetary valuation study in Colombia

Deliberative monetary valuation (DMV) methods can support environmental decision making by enabling the exchange of arguments and information to produce more democratic outcomes. The product of a valuation may be an array of expressions of willingness to pay (WTP) by individuals or a collectively agreed monetary value. Concerns have been raised, however, as to whether this product is an outcome of thoughtful and independent decision-making or influenced by social pressures to conform. Our study examines this issue and addresses concerns about the use of DMV, based on a public deliberation of forest conservation in Colombia. We analyzed the impacts of social conformity on WTP under two different decision scenarios: individual and collective. The results suggest that the impacts of social conformity are greater when a collective decision is required. These findings indicate that tensions between the differing goals of DMV could undermine its democratic promise.     

Exploring Land Developer Perspectives on Conservation Subdivision Design and Environmentally Sustainable Land Development

Insight into land developers’ perspectives on alternative residential developments and the barriers they experience in trying to develop them can be crucial in efforts to change environmentally damaging low-density, large-lot, and automobile-dependent residential patterns. Using a semi-structured interview instrument followed by short surveys, I examined the views of 16 developers in Waukesha County, WI, USA, a county that has experienced significant development pressures and widespread implementation of conservation subdivision design. The land developer investigation focused on conservation subdivision design familiarity and implementation, and identified a number of barriers that developers experienced in implementing the design. While the majority of the developers appeared familiar with the design and had experience developing conservation subdivisions, their motivations for developing them varied, as did their on-site conservation practices. The barriers included the lack of land use regulations supporting the design, economic factors, community opposition, and a lack of knowledge about sustainable residential development practices. Strategies to promote more environmentally sustainable residential land development patterns include providing a more supportive institutional environment, enacting different regulations and guidelines for natural resources protection, and offering education on ecologically sound development and planning practices.     

A new recoding method for treating protest responses in contingent valuation studies using travel cost data

In this paper, it is proposed one method to recode protest responses applicable to the simple dichotomous format valuation question made to visitors to natural environment in contingent valuation studies. Those respondents that give a protest response but have a travel cost greater than the bid proposed in the valuation question are recoded as an affirmative answer to the proposed payment. The economic justification lies in the minimum willingness to pay for enjoying the environment that travel cost reveals, while valuation question tries to obtain information about respondent maximum willingness to pay. Recoding allows to recover information and to improve estimates, accuracy. It also avoids computational complexity associated with sample selection models used to avoid biases derived from excluding protest responses.     

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).     

THE W-INDEX FOR RESIDENTIAL WATER CONSERVATION1

ABSTRACT: An index of residential water efficiency - a “W-Index” - can serve as a measure of effectiveness of water conservation features in the home. The index provides a calculated numerical value for each dwelling unit, derived from the number and kind of water-saving features present, including indoor and outdoor water savers and water harvesting or recycling systems. A W-Index worksheet, devised for on-site evaluation of single-family residences in the Tucson, Arizona, region shows that a nonconserving residence with all the water-using features would use 151,000 gallons per year or 148 gallons per capita per day (gpcpd), while the fully conserving model would use 35,300 gallons per year or 35 gpcpd and with water harvesting and graywater recycling systems would have a maximum W-Index of W-160. A Tucson water conservation demonstration home, Casa del Agua, received a rating of W-139, and field tests of about 30 homes in new Tucson subdivisions show values ranging from W-75 to W-100, indicating the incorporation of some water conservation in current new models. By adjustment of some climatic or water-use parameters, the W-Index format can be applied to various types of dwelling units or to other urban areas. The W-Index can be used by individual homeowners or builders to evaluate water efficiency of residential units, or by water providers or water management agencies as a device for promoting and achieving water conservation goals.     

FLOODPLAINS AND HOUSING VALUES: IMPLICATIONS FOR FLOOD MITIGATION PROJECTS1

ABSTRACT: The hedonic valuation method was used to quantify the impact of floodplain location on housing values in Fargo‐Moor‐head. Being located in the 100‐year floodplain lowered the home values by $8,990, and such homes were worth $10,241 less than similar homes located outside the floodplain before the major flood event of 1997. Required flood insurance premiums for these homes were determined to account for approximately 81 percent of this price depreciation. In contrast, homes in the 500‐year floodplain were worth $3,100 more than similar homes not in the floodplain. It was concluded that more disclosure is needed regarding the location of the 500‐year floodplain, and that the hedonic valuation method can be used to calculate the economic gains and losses associated with flood mitigation projects or floodplain remapping efforts that result in the reclassification of the legal floodplain status of individual homes.     

USING CONTINGENT VALUATION AND BENEFIT TRANSFER TO EVALUATE WATER SUPPLY IMPROVEMENT BENEFITS1

ABSTRACT: Many water systems in small cities and rural areas throughout the United States are facing water quality and supply problems. These problems are typically not the result of an unexpected event, but are the result of growth trends or decreasing water quality experienced over several years. This analysis uses the contingent valuation and benefit transfer methods to evaluate the willingness to pay for a rural water system in northcentral Montana. Both of the procedures resulted in similar values, ranging from about $4.05 to $7.50 per household per month for urban residents and $5.40 to $11.50 per household per month for rural residents, which is equal to 11 percent to 23 percent of current average water costs. The willingness to pay estimates do not include non-household water users. This analysis shows that useful planning information can be obtained from relatively inexpensive contingent valuation mail survey data and the benefit transfer method as long as the limitations of the data are understood. The willingness to pay for ensuring good quality rural water supplies in the future is likely to be low compared to the costs of extensive diversion and treatment systems. Willingness to pay estimates provide decision makers with information that can be used to avoid building a large water supply system that water users do not want to connect to because of high costs.     

Urban Australians using recycled water for domestic non-potable use--an evaluation of the attributes price, saltiness, colour and odour using conjoint analysis

Recycled water use in urban areas is viewed as one part of the solution to Australia's water shortage. The effectiveness of policies designed to promote recycled water systems depends on the acceptance by the community of the price, colour, odour and salt content of the recycled water. In Australia and other countries, limited research has been conducted that investigates community attitudes to and willingness to pay for recycled water, especially in urban settings. Community acceptance of recycled water and the economic feasibility of such projects have not been widely evaluated, even though the long-term feasibility of many projects is dependent on such information. This paper examines the attitudes of an urban Australian community living at Mawson Lakes in South Australia, to using recycled water for non-potable domestic purposes. Conjoint analysis (CA) was used to evaluate participant's (n=136) preferences for various attributes of recycled water (colour, odour, salt content and price) for various uses (garden watering, toilet flushing and clothes washing). The analysis was used to estimate the respondent's willingness to pay (WTP) for quality increases for each of the attributes. Differences in WTP were investigated according to various demographic variables including income and education. Results indicate that for garden watering having 'low salt levels' is the most important attribute of recycled water, for clothes washing 'colourless' is the most important attribute, and for toilet flushing a 'low price' was the most important attribute. Respondents were willing to pay for increases in the quality of recycled water. The amount they were willing to pay varied depending on applied use and the attribute in question. Respondents were most willing to pay for an increase in quality of recycled water when used for clothes washing (willing to pay Australian dollars (A$) 0.07/cubic meter (m(3)) for removal of colour, A$0.065 per cubic meter for an increase in quality of recycled water from 'salty' to 'low salt,' and A$ 0.06/m(3) for removal of odour (1A$=0.75 US $ and 0.62 euro, August 24, 2005)). Segmentation of the price attribute by demographic sectors reveals that those in the higher income bracket, higher education sector, middle age group, and who are male, had a higher marginal valuation on price. The results of this study provide important information for recycled water retailers and water policy developers, helping achieve greater economic feasibility for future recycled water projects, to the satisfaction of the communities involved.     

Willingness to pay towards a public good: how does a refund option affect stated values?

Mandatory taxes and/or voluntary contributions are commonly adopted as the payment vehicle when eliciting willingness to pay (WTP) in environmental valuation studies. While mandatory taxes may arouse negative feelings, voluntary contributions may lead to strategic behaviour (over bidding) or free riding (under bidding). In this paper, we explore an alternative payment vehicle which avoids the draconian undertones associated with taxes and may be more incentive compatible than a voluntary contribution – a tax that incorporates a refund option. The template for such a payment vehicle is the value added tax charged to tourists in Ireland, but which can be reclaimed on exiting the country. In the context of raising public funds to support the conservation of rural countryside landscape, a comparison is made between the elicited WTP via a mandatory tax and that elicited via the alternative payment method incorporating a refund option. While we observe similar participation rates between the two payment methods, the refund option reveals a higher stated WTP.