The expert valuation method for assessing agro‐environmental policy

The Contingent Valuation Method (CVM) and other conventional valuation methods of non‐market goods often prove to be unsuitable for the evaluation of the benefits of agro‐environmental policy. Therefore, a new method is introduced, according to which a group of experts jointly evaluates the strengths, weaknesses and finally monetary benefit of agro‐environmental programmes. While the methodology combines expert surveys, group discussions and CVM, its theoretical background is merit good theory. Compared to CVM, the most important practical difference in its outcome is the greater openness of the results. As an example, the Expert Valuation Method is applied to two groups of agro‐environmental policy measures in Switzerland. Suggestions for more efficient levels of reimbursements are made.     

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.     

How Niagara Mohawk incorporates environmental factors into policies,plans, and procedures

Niagara Mohawk Power Corporation (NMPC), an investor-owned electric and gas utility operating in upstate New York, has incorporated environmental factors into several facets of its operations, including generation and transmission system planning and operations, system electric operations, and system gas operations. This article describes how NMPC has incorporated environmental considerations in its valuation of new and existing generation resources. What makes this effort unique is that not only are existing environmental regulatory requirements reflected in the planning process, but also prospective environmental requirements are incorporated. This article provides an overview of NMPC's generation valuation process and discusses how both existing and future environmental requirements are addressed.     

Intelligent Databases Assist Transparent and Sound Economic Valuation of Ecosystem Services

Assessment and economic valuation of services provided by ecosystems to humans has become a crucial phase in environmental management and policy-making. As primary valuation studies are out of the reach of many institutions, secondary valuation or benefit transfer, where the results of previous studies are transferred to the geographical, environmental, social, and economic context of interest, is becoming increasingly common. This has brought to light the importance of environmental valuation databases, which provide reliable valuation data to inform secondary valuation with enough detail to enable the transfer of values across contexts. This paper describes the role of next-generation, intelligent databases (IDBs) in assisting the activity of valuation. Such databases employ artificial intelligence to inform the transfer of values across contexts, enforcing comparability of values and allowing users to generate custom valuation portfolios that synthesize previous studies and provide aggregated value estimates to use as a base for secondary valuation. After a general introduction, we introduce the Ecosystem Services Database, the first IDB for environmental valuation to be made available to the public, describe its functionalities and the lessons learned from its usage, and outline the remaining needs and expected future developments in the field.     

Context-dependent evaluation of climate change policies: competing policies,knowledge and emotions

Climate change policies can compete with policies on other social and environmental problems for limited economic resources. This paper investigates the potential influence of alternative policies on citizens’ preferences for climate change policies. A contingent valuation study was implemented to estimate the impact of observable and unobservable contextual effects of competing polices on climate change valuation. Individuals are also investigated about their endowment of knowledge and emotional reactions to such problems. The results show that citizens’ valuation of climate change policies crucially depends on the context-dependent competing policies. The valuation rises as the number of competing policies increases. This increment becomes economically significant when the competing policies are related to specific problems such as forest fires and development. In addition, the valuation also rises with the amount of knowledge endowed by the individual about the climate change problem, and with the experience of negative emotions such as fear and sadness.     

The valuation of historical sites: a case study of Valdivia,Chile

The economic valuation of cultural heritage is an area of increasing interest and an important research topic in the emerging field of cultural economics. Many services and values associated with cultural heritage are not traded in markets, and their estimation requires methods developed for the valuation of non-market goods, such as those used in environmental economics. This paper applies the contingent valuation method with double dichotomous choice to estimate the value of historical sites in the city of Valdivia, Chile. The valuation exercise was implemented by designing a hypothetical guided walking tour to a cluster of historical sites in the city centre, and surveying tourists visiting the city during the summer of 2004. Parametric and non-parametric statistical methods were used to estimate the survival distribution and the mean and median estimates of the willingness-to-pay (WTP). The study emphasizes the importance of explicitly treating heterogeneous preferences and the sensitivity of the survival distribution to the estimation methods used.     

DYNAMICS OF WETLAND DEVELOPMENT AND RESOURCE MANAGEMENT IN LAS VEGAS WASH,NEVADA1

ABSTRACT: This paper examines the co‐evolution of the Las Vegas, Nevada metropolitan area, Las Vegas Wash ecosystem‐a downstream riparian wetland‐and Wash management as a case of urban‐environment dynamics. Since Las Vegas Wash provides the primary drainage for Las Vegas, changes in the urban system lead to changes in the Wash and its ecosystem. The population of the drainage area has grown from approximately 1,000 people in 1900 to more than 1.3 million in 2000. This phenomenal population growth led to increased Wash flow, from less than .03 m³/sec (1 ft³/sec) to over 7.4 m³/sec (260 ft³/sec), and consequent ecological changes from a nearly dry wash to a rich wetland, and now to an eroded system. As the Wash ecosystem changed, valuation of Wash characteristics by residents and resource managers also changed, shifting the focus of management and use, which ultimately led to further ecosystem changes. Reciprocal relationships among human activity, environmental change, and management in this urban area highlight the need for a comprehensive and dynamic systems perspective and adaptive approaches in urban environmental management and make this a particularly compelling case study. This paper describes a conceptual systems framework for adaptive urban‐environment management derived from this case.     

RESERVOIR WATER LEVEL IMPACTS ON RECREATION,PROPERTY, AND NONUSER VALUES1

ABSTRACT: Wise interbasin management of Southeastern U.S. water resources is important for future development. Alabama‐Coosa‐Tallapoosa and Apalachicola‐Flint‐Chattahoochee River basins' water usage has evolved from power generation to multiple uses. Recreation and housing have become increasingly valuable components. Changing use patterns imply changing resource values. This study focused on six Alabama reservoirs, using contingent valuation questions in on‐site, telephone, and mail surveys to estimate impacts on lakefront property values, recreational expenditures, and preservation values for scenarios of permanent changes to reservoir water quantity. As summer full‐pool duration decreased, lakefront property value decreased, and as duration increased, property values increased, but at a lesser rate. Similar findings occurred for winter draw down alternatives. Permanent one‐foot reductions in summer full‐pool water levels resulted in a 4 to 15 percent decrease in lakefront property values. Recreational expenditures decreased 4 to 30 percent for each one‐foot lowering of reservoir water levels. Current nonusers of the six reservoirs showed strong preferences for protecting study reservoirs with willingness to pay values of 47 per household or approximately 29 million for the entire six‐reservoir watershed basin area. Resource management based on historic use patterns may be inappropriate and more frequent and comprehensive valuation of reservoir resources is needed.     

Assessing the benefits of community forests: an evaluation of the recreational use benefits of two urban fringe Woodlands

In 1989 the Countryside and Forestry Commissions launched a national programme to create Community Forests on the fringes of major towns and cities in England and Wales. The assumption that such forests will be of benefit to the community at large was tested by means of surveys of two existing multi‐purpose woodlands adjacent to major conurbations. Contingent valuation, travel cost and time cost methods of environmental valuation were used to estimate the existing user benefits of the two woodlands for recreation. The study highlights weaknesses in the travel cost approach when applied to recreational facilities located near urban fringe areas which can be accessed on foot. The results of the two surveys are discussed and compared with similar results for more rural woodlands/ forests. The study suggests that on social grounds at least the concept of Community Forests should be pursued with recreation benefits alone exceeding management costs by a factor of three.     

Benefits Transfer and Low Flow Alleviation: What Lessons for Environmental Valuation in the UK?

Use of environmental valuation and benefits transfer in a recent legal ruling in the UK between Thames Water Utilities and the Environment Agency over water abstraction costs appeared to set an unfortunate precedent. In the first attempt to fulfil its statutory duties, the Agency was thwarted in its use and interpretation of non-market valuation techniques, in particular, the vexed issue of how to aggregate the results of valuation studies in original sites or those to where values might be transferred. The ruling has broader implications for water pricing and resource development by the industry. Far from being a blow for either cost-benefit analysis or environmental valuation, the decision highlights some of the research imperatives for the derivation of non-market values by economists and their translation for use in government decisions.     

Scenario realism and welfare estimates in choice experiments--a non-market valuation study on the European water framework directive

Using choice experiment data for economic valuation we analyse how disbelief in survey information could affect the retrieved welfare estimates. We distinguish between two types of survey information to the respondents. The first type of information concerns the current environmental status of a water body. This information is provided prior to the valuation questions and the corresponding beliefs in the provided information are also elicited before valuation. The second type of information concerns the proposed improvements in the environmental status of the water body. We find that average welfare measures differ considerably according to whether respondents who disagree with the status quo levels and find proposed scenarios unlikely are included or not.     

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.     

Policy context as a factor of bias in the valuation of environmental goods – a dual-process theories perspective

When ecosystem services value estimates are applied in the economic assessment of environmental policies, high accuracy of these estimates is required. One of the directions in the scientific discussion on biases in stated preference (SP) valuation surveys builds on dual-process theories of judgment. The paper contributes to this literature by presenting an experiment where two types of judgment were induced via separate versus joint valuation of environmental goods. The results demonstrated that policy relevance of environmental issues, e.g. the need for conservation measures increases emotional response, causing a larger bias in the separate design as it involves ‘valuation by feeling.’ This finding suggests that the context of a specific policy, which is often the reason for conducting SP surveys, influences the answers, thereby making the results less reliable for use in cost–benefit analysis.     

Better than their reputation: enhancing the validity of contingent valuation mail survey results through citizen expert groups

Although contingent valuation is the dominant technique for the valuation of public projects, especially in the environmental sector, the high costs of contingent valuation surveys prevent the use of this method for the assessment of relatively small projects. The reason for this cost problem is that typically only contingent valuation studies which are based on face-to-face interviews are accepted as leading to valid results. Particularly in countries with high wages, face-to-face surveys are extremely costly considering that for a valid contingent valuation study a minimum of 1000 completed face-to-face interviews is required. This paper tries a rehabilitation of mail surveys as low-budget substitutes for costly face-to-face surveys. Based on an empirical contingent valuation study in Northern Thailand, it is shown that the validity of mail surveys can be improved significantly if so-called Citizen Expert Groups are employed for a thorough survey design.     

Applied landscape economics: a personal journey of discovery

Putting cash values on the environment facilitates commoditization and political capture of evaluation. However, individual citizens may also wish to know the appropriate trade‐off of values, in order to use political power properly. Willingness‐to‐pay offers insight into consumers’ valuation of landscape, but routine application of economic methods to land use decisions meets major problems, especially the data needs of cost — benefit analysis in face of the urgency of decisions, and the insensitivity of conventional methods to subtle landscape changes. These problems require the citizen‐as‐consumer to make personal judgements of value, but to link those values to a cash scale for the purpose of making trade‐offs. Such judgements can be entered into an orderly framework, in which the judgements can be exposed for comment, which itself exposes the assumptions of commentators. The decision about routing electricity transmission lines in Scotland provides an example. Recent interest in environmental economics gives the opportunity to broaden the scope of the method.     

Ethics and Environmental Attitudes With Implications for Economic Valuation

This paper tests the hypothesis that different ethical belief systems are unrelated to the attitude an individual takes towards the environment. More specifically, the neoclassical economic approach is seen to require a belief in utilitarianism while many individuals may operate on the basis of a deontological or rights-based approach to decision-making. The concern with this relationship arises from the use of the cost–benefit analysis approach to environmental policy and the specific application of the contingent valuation method. Evidence is found to support the view that environmentalists choose to operate on a rights-based approach which rejects the relative welfare arguments of economics and positively attributes compensation to future generations for environmental damages. This implies that the contingent valuation of environmental attributes will lead to values which are biased towards technocentric optimists and against the environmental movement. In terms of policy, environmental management on the basis of totalling economic values is liable to be undemocratic because of the systematic exclusion of a section of the general public.     

The politics and power effects of garbage recycling in Halifax,Canada

Abstract

The theoretical concept of ‘governmentality’, as developed by French political theorist Michel Foucault, presents three aspects: (a) an analysis of knowledge, (b) a study of the power effects of normalisation and resistance and (c) the possibility of a non‐essentialist ethic. Governmentality has not yet been applied to environmental issues. First, the concept of governmentality is explained briefly. Then, a detailed case study of the controversy surrounding a proposed municipal incinerator in metropolitan Halifax (Canada) provides an evaluation of the relevance and pertinence of the concept. The case study confirms: (1) the importance of discursive categories in the legitimisation process of local environmental policy; (2) the centrality of the tension between attempts by local authorities to normalise the conduct of the population and resistance presented by environmental groups and individuals; (3) the possibility for groups and individuals to articulate an alternative identity—a Green self—which goes beyond the existing boundaries.     

LAKE AND RWER QUALITY FOR RECREATION MANAGEMENT AND CONTINGENT VALUATION1

ABSTRACT: Accurate valuation of recreational lakes and rivers in contingent valuation (CV) studies requires that the definition of the environmental good being sold meets the requirements of correspondence, proximity, and familiarity. The concept of ‘water quality’ normally used fails to meet these requirements. This paper offers a broader concept of “lake/river quality” - a collection of physical, ecological, and aesthetic characteristics that create the opportunity for recreation, scenic enjoyment, and fish and wildlife propagation - that better describes the characteristics that recreationists value in lakes and rivers. The concept therefore better meets CV requirements and should be the basis for defining environmental improvements and declines to be hypothetically sold in CV surveys.     

Policy And Practice Green Grass and Brown Roots: Understanding Environmental Problems in Deprived Neighbourhoods

Understanding neighbourhood conditions can play an important role in urban environmental management, especially when environmental services are lacking and new approachesare being debated. This paper describes and evaluates three research methods for assessing some of the environmentalproblems facing low income households and communities: (1) broad spectrum household surveys; (2) participatory rapid assessment; and (3) contingent valuation. As part of the study upon which this paper is based, the techniques were applied on a small scale in Jakarta. The paper finds that each technique can provide important and often complementaryinsights. The broad spectrum survey is particularly suitable to broad based planning, participatory appraisal to NGO initiatives and contingent valuation to utility pricing decisions.