Correcting for non-response bias in contingent valuation surveys concerning environmental non-market goods: an empirical investigation using an online panel

Data collection for economic valuation by using Internet surveys and pre-recruited Internet panels can be associated with severe disadvantages. Problems concerning sample coverage and sample representativeness can be expected. Representation errors may occur since people can choose whether to be part of an Internet panel and subsequently whether they wish to participate in the survey, thereby introducing two elements of potential self-selection. These elements may be correlated with preferences, thus making the respondents a non-random and non-representative sample, ultimately biasing results. This paper analyses a sample used for an Internet contingent valuation method survey eliciting preferences for improvements in water quality of a river. We find that some variables that affect the survey participation decision also affect willingness-to-pay, consequently biasing our welfare estimates. We show how adjusting willingness-to-pay for this bias can be accomplished by using a grouped data model incorporating a correlation parameter to account for selection.     

Web-based surveys as an alternative to traditional mail methods

Environmental economists have long used surveys to gather information about people's preferences. A recent innovation in survey methodology has been the advent of web-based surveys. While the Internet appears to offer a promising alternative to conventional survey administration modes, concerns exist over potential sampling biases associated with web-based surveys and the effect these may have on valuation estimates. This paper compares results obtained from a travel cost questionnaire of visitors to Fraser Island, Australia, that was conducted using two alternate survey administration modes; conventional mail and web-based. It is found that response rates and the socio-demographic make-up of respondents to the two survey modes are not statistically different. Moreover, both modes yield similar consumer surplus estimates.     

What Level of Information Enables the Public to Act Like Experts When Evaluating Ecological Goods?

Although contingent valuation is widely discussed in the literature as a technique for environmental valuation, it is well recognized that a number of problems are associated with its use. This paper seeks to address two of these problems: the difficulty of externally verifying the results of a CV study; and the choice of an appropriate level of information to provide to respondents. Four sites were evaluated, first by expert ecologists and then by the general public using the CV method. In conducting the CV, six different categories of information were presented to different groups of respondents to test which was most appropriate.The results show that, given an information set consisting of photographic,textual and ecological data, respondents to a CV study were able to rank the four sites in the same order as ecological experts. This may be seen as a form of external verification to the results of the contingent valuation.     

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.     

Rural environmental attitudes

Two frequent beliefs about rural environmental attitudes are examined conceptually and empirically: (1) the common conception that rural environmental concerns are expressed predominantly by wealthy community newcomers; and (2) the related position that long-time rural residents are hostile to the environmental cause. We argue conceptually, through the use of a 2×2 community matrix, that environmental attitudes are equally likely to be expressed by what we term “upper middle income newcomers,” “lower middle income newcomers,” “upper middle income locals,” and “lower middle income locals.” Empirically, we find that although wealthy newcomers express the strongest environmental attitudes in the community, their concerns represent only a small percentage of rural environmental attitudes consisting of respondents who make less than $40,000 a year in household income are over 40 years of age, possess less than a college education, and work in a nonprofessional occupation. This new category expresses environmental concerns at least equal to the rest of the community on three of four measures of environmental attitudes. The findings provide insight into the widespread and cross-sectional nature of rural environmental concern. The implication is that environmental groups will find significant sources of political support in rural communities, provided they craft their environmental message in a language consistent with rural attitudes and values. Things are gettin' bad fast. Easterners and environmentalists comin' down here from the big cities are tryin' to turn our way of life completely upside down. A western US rancher quoted in Krakauer (1991)     

Ecosystem services in infrastructure planning – a case study of the projected deepening of the Lower Weser river in Germany

We consider how ecosystem services can be incorporated into water infrastructure planning by studying the projected deepening of the Lower Weser river channel in Germany. We recalculate the project's benefit–cost ratio by integrating the monetary value of changes in different ecosystem services, as follows: (1) the restoration costs of a mitigation measure for a loss in fresh water supply for agricultural production in the estuary region, (2) the costs of a loss in habitat services, transferring the willingness to pay from a contingent valuation study to the area assessed in the environmental impact assessment, and (3) the benefits of emissions savings induced by more efficient shipping, taking a marginal abatement cost approach. We find that including monetary values for ecosystem service changes leads to a substantial drop in the benefit–cost ratio. On this basis, we argue for a reform of the standard cost–benefit analysis to facilitate more complete welfare assessments.     

Environmental Awareness and Public Support for Protecting and Restoring Puget Sound

In an effort to garner consensus around environmental programs, practitioners have attempted to increase awareness about environmental threats and demonstrate the need for action. Nonetheless, how beliefs about the scope and severity of different types of environmental concerns shape support for management interventions are less clear. Using data from a telephone survey of residents of the Puget Sound region of Washington, we investigate how perceptions of the severity of different coastal environmental problems, along with other social factors, affect attitudes about policy options. We find that self-assessed environmental understanding and views about the seriousness of pollution, habitat loss, and salmon declines are only weakly related. Among survey respondents, women, young people, and those who believe pollution threatens Puget Sound are more likely to support policy measures such as increased enforcement and spending on restoration. Conversely, self-identified Republicans and individuals who view current regulations as ineffective tend to oppose governmental actions aimed at protecting and restoring Puget Sound. Support for one policy measure—tax credits for environmentally-friendly business practices—is not significantly affected by political party affiliation. These findings demonstrate that environmental awareness can influence public support for environmental policy tools. However, the nature of particular management interventions and other social forces can have important mitigating effects and need to be considered by practitioners attempting to develop environment-related social indicators and generate consensus around the need for action to address environmental problems.     

Determining advanced recycling fees and subsidies in "E-scrap" reverse supply chains

Primarily due to environmental concerns and legislative mandates, the disposition of end-of-life (EOL) electronics products has attracted much attention. Advanced recycling fees (ARFs) and government subsidies may play important roles in encouraging or curtailing the flows of recycled items. We present a Stackelberg-type model to determine ARFs and socially optimal subsidy fees in decentralized reverse supply chains where each entity independently acts according to its own interests. The model consists of one leader (the government) and two followers (a group of manufacturers, importers, and sellers (MISs) and a group of recyclers). To maximize social welfare, the government determines the ARFs paid by MIS and the subsidy fees for recyclers when MIS sells new products and recyclers process EOL products. We find that MIS and recyclers behave at the equilibrium status by choosing optimal selling quantity in the market and optimal reward money for customers bringing EOL products to recyclers. Under this approach the two fees achieve the maximum of social welfare at the equilibrium status, while both MIS and recyclers gain the maximum of profits. For comparative purposes, we also develop a conceptual model describing the current practice by which ARFs and the subsidy fees are determined on the basis of fund balance between revenues and costs along with recycling operations. We conclude that our results outperform current practice.     

Comparing contingent valuation and contingent ranking: a case study considering the benefits of urban river water quality improvements

This paper contrasts applications of both the contingent valuation (CV) and contingent ranking (CR) methods as applied to a common issue, the valuation of improvements to the water quality of an urban river (the River Tame, running through the city of Birmingham, UK). Building upon earlier experimental work, the CV design used ensures that respondents are fully aware of all impending valuation tasks prior to undertaking any one of those tasks. Such an approach is directly comparable to the CR design for which full awareness of all options is a pre-requisite. Findings indicate that the CV responses exhibit strong internal consistency with expected relationships observed between values and theoretically expected parameters. External comparisons show that CR valuations are substantially larger than those elicited through CV (with protest votes excluded), and that the response rate for the CR survey is significantly higher than that for the CV survey.     

Valuing improvements to threatened and endangered marine species: an application of stated preference choice experiments

Non-market valuation research has produced value estimates for over forty threatened and endangered (T&E) species, including mammals, fish, birds, and crustaceans. Increasingly, Stated Preference Choice Experiments (SPCE) are utilized for valuation, as the format offers flexibility for policy analysis and may reduce certain types of response biases relative to the more traditional Contingent Valuation method. Additionally, SPCE formats can allow respondents to make trade-offs among multiple species, providing information on the distinctiveness of preferences for different T&E species. In this paper we present results of an SPCE involving three U.S. Endangered Species Act (ESA)-listed species: the Puget Sound Chinook salmon, the Hawaiian monk seal, and the smalltooth sawfish. We estimate willingness-to-pay (WTP) values for improving each species' ESA listing status and statistically compare these values between the three species using a method of convolutions approach. Our results suggest that respondents have distinct preferences for the three species, and that WTP estimates differ depending on the species and the level of improvement to their ESA status. Our results should be of interest to researchers and policy-makers, as we provide value estimates for three species that have limited, if any, estimates available in the economics literature, as well as new information about the way respondents make trade-offs among three taxonomically different species.     

Responses of community to the possible use of recycled water for washing machines: A case study in Sydney, Australia

Recycled water is a valuable resource that has potential to free up potable water supplies and recharge systems while improving the environment. Recycled water for washing machine could be one of the options as new end use of recycled water to alleviate the demand on existing and limited water supplies. This paper summarizes the findings of a research survey in Sydney, Australia to explore the attitudes and opinions of community towards the use of recycled water for different purposes, especially for the washing machine. The survey showed that 97% of the respondents were aware of the persisting water shortage problem while more than 60% of the respondents supported the use of recycled water for washing clothes. This paper exposes the basic concern of participants for using recycled water in washing machine. Health issue was found as the most concerns of the community. The survey also presents the further conditions to be considered for using recycled water for washing machine according to the participants’ opinions. Correlation between knowledge and attitudes of respondents was also found in this survey.     

ASSESSING THE ECONOMIC BENEFITS OF GROUND WATER FOR ENVIRONMENTAL POLICY DECISIONS1

ABSTRACT: The full range of environmental and economic services of ground water need to be accounted for in policy decisions. Non-recognition of these services imputes a lower value for the ground water resource in establishing policies. We describe a conceptual framework for identifying and measuring the economic value of groundwater. The valuation framework links changes in physical characteristics of ground water to services provided by ground water and the economic effects of changes in ground water services. In addition to the framework, we develop a general protocol to follow for assessing the benefits of ground water policies. Application of the protocol will aid in establishing structure and consistency across policy assessments and improve the accuracy and completeness of benefit estimates, avoid double-counting problems, and eliminate duplication of ground water valuation efforts.     

The effect of information on public acceptance – The case of water from alternative sources

This study aims to provide conclusive evidence that information about water from alternative sources increases public acceptance. We conducted an experiment with 1000 Australian respondents asking them about their acceptance of recycled and desalinated water for a range of purposes under two conditions: 1) no information provided and 2) information about the production process provided. Results indicate that – both for desalinated and recycled water – the stated likelihood of use increases significantly if people are provided with information about the production process. This has major implications for public policy makers indicating that providing factual information (as opposed to persuasive campaigns) will increase public support of water augmentation projects.     

Application of a value-based equivalency method to assess environmental damage compensation under the European Environmental Liability Directive

The Environmental Liability Directive (ELD) establishes a framework of liability based on the ‘polluter-pays’ principle to prevent and remedy environmental damage. The ELD requires the testing of appropriate equivalency methods to assess the scale of compensatory measures needed to offset damage. The aim of this paper is to contribute to fill the existing knowledge gap on the application of the value equivalency approach for damage compensation in this context. We analyze the toxic spill damaging the Doñana National Park (Spain) in 1998. The welfare losses associated with the resource damage are estimated using non-market valuation and compared to the value of the compensatory measures taken after the accident. Our results show that the in-kind compensation may have been insufficient to offset the welfare losses. We conclude that a more comprehensive knowledge of the human welfare effects caused by environmental damage is of substantial importance to determine compensatory remediation, as insufficient information in this respect can lead to erroneous decisions causing loss to society.     

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.     

Trust in Sources of Soil and Water Quality Information: Implications for Environmental Outreach and Education

Public trust in organizations focused on improving environmental quality is important for increasing awareness and changing behaviors that have water quality implications. Few studies have addressed trust in soil and water quality information sources, particularly for both agricultural and nonagricultural respondents of the same watersheds. Surveys in 19 watersheds across five states in the Midwest assessed trust in, and familiarity with, soil and water quality information sources. Overall, respondents most trusted University Extension, Soil and Water Conservation Districts, and the Natural Resource Conservation Service, while lawn care companies, environmental groups, and land trusts were less trusted. Significant differences in trusted sources were found between watersheds, and between agricultural and nonagricultural respondents across and within watersheds. Among agricultural respondents, a clear relationship exists between familiarity and trust; as familiarity with an organization increases, so too does level of trust. This relationship is less clear‐cut for nonagricultural respondents in this region. We highlight implications of these findings for soil and water quality outreach efforts.     

An Assessment of Stakeholder Perceptions and Management of Noxious Alien Plants in Spain

Despite biological invasions being a worldwide phenomenon causing significant ecological, economic, and human welfare impacts, there is limited understanding regarding how environmental managers perceive the problem and subsequently manage alien species. Spanish environmental managers were surveyed using questionnaires to (1) analyze the extent to which they perceive plant invasions as a problem; (2) identify the status, occurrence, and impacts of noxious alien plant species; (3) assess current effort and expenditure targeting alien plant management; and, finally, (4) identify the criteria they use to set priorities for management. In comparison to other environmental concerns, plant invasions are perceived as only moderately problematic and mechanical control is the most valued and frequently used strategy to cope with plant invasions in Spain. Based on 70 questionnaires received, 193 species are considered noxious, 109 of which have been the subject of management activities. More than 90% of species are found in at least one protected area. According to respondents, the most frequently managed species are the most widespread across administrative regions and the ones perceived as causing the highest impacts. The perception of impact seems to be independent of their invasion status, since only half of the species identified as noxious are believed to be invasive in Spain, while 43% of species thought to only be casual aliens are causing a high impact. Records of management costs are poor and the few data indicate that the total actual expenditure amounted to 50,492,437 € in the last decade. The majority of respondents stated that management measures are insufficient to control alien plants due to limited economic resources, lack of public awareness and support, and an absence of coordination among different public administrations. Managers also expressed their concern about the fact that much scientific research is concerned with the ecology of alien plants rather than with specific cost-efficient strategies to manage alien species.     

Including risk in stated-preference economic valuations: Experiments on choices for marine recreation

Stated-preference surveys for the economic valuation of environmental resources typically assume no uncertainty in the hypothetical valuation scenarios. However, the outcomes of environmental policies are uncertain. We explored the effects of including information on probabilities of attribute improvement and provision in choice experiments. Our results suggest that stating explicitly a high probability for the occurrence of the valuation scenario can improve the goodness of fit of choice models and the consistency of choices. As the general public becomes more aware of the uncertainty of environmental outcomes under global change, omitting information on scenario risk may contribute to hypothetical bias and impair the validity of stated-preference valuations.