The contingent behavior of charter fishing participants on the Chesapeake Bay: Welfare estimates associated with water quality improvements

Water quality in the Chesapeake Bay has deteriorated over recent years. Historically, fishing has contributed to the region's local economy in terms of commercial and recreational harvests. A contingent behavior model is used to estimate welfare measures for charter fishing participants with regard to a hypothetical improvement in water quality. Using a truncated Poisson count model corrected for endogenous stratification, it was found that charter fishers not only contribute to the local market economy, but they also place positive non-market value on preserving the Bay's water quality. Using two estimates for travels costs it is estimated that the individual consumer surplus is $200 and $117 per trip, and the average individual consumer surplus values for an improvement in water quality is $75 and $44 for two models estimated.     

Economic Value of Instream Flow for Non-Commercial Whitewater Boating Using Recreation Demand and Contingent Valuation Methods

Whitewater river kayaking and river rafting require adequate instream flows that are often adversely affected by upstream water diversions. However, there are very few studies in the USA of the economic value of instream flow to inform environmental managers. This study estimates the economic value of instream flow to non-commercial kayakers derived using a Travel Cost Method recreation demand model and Contingent Valuation Method (CVM), a type of Contingent Behavior Method (CBM). Data were obtained from a visitor survey administered along the Poudre River in Colorado. In the dichotomous choice CVM willingness to pay (WTP) question, visitors were asked if they would still visit the river if the cost of their trip was $Y higher, and the level of $Y was varied across the sample. The CVM yielded an estimate of WTP that was sensitive to flows ranging from $55 per person per day at 300 Cubic Feet per Second (CFS) to a maximum $97 per person per day at flows of 1900 CFS. The recreation demand model estimated a boater’s number of trips per season. We found the number of trips taken was also sensitive to flow, ranging from as little as 1.63 trips at 300 CFS to a maximum number of 14 trips over the season at 1900 CFS. Thus, there is consistency between peak benefits per trip and number of trips, respectively. With an average of about 100 non-commercial boaters per day, the maximum marginal values per acre foot averages about $220. This value exceeds irrigation water values in this area of Colorado.     

Valuation of management policies for sport‐fishing on Sweden's Kaitum river

In addition to its empirical results, this paper makes three distinct contributions to the literature on valuing fishing recreation by stated preference methods. In particular, the paper proposes a new approach to designing a choice experiment, called ‘approximate minimax design’. It employs the latest advances in optimal design theory and is much easier to compute than the ordinary minimax design. Second, the choice‐experiments are embedded in a trip frequency model, such that the changes in trip frequency can be predicted from improved fish management. Most importantly, the approach proposed in the paper provides a first step in developing dynamic fish management models, because the policies analysed may change the age‐structure of the stock. The paper also contributes with new results on anglers' valuations of angling site characteristics. They conform to traditionally obtained results but also show some unexpected results. In particular, the result does not indicate a difference in the valuation of the species caught. As expected, the application shows that the marginal value of trophy‐fish is high.     

THE USE OF BINARY OPTIMIZATION AND HYDROLOGIC MODELS TO FORM RIPARIAN BUFFERS1

ABSTRACT: Riparian buffers are considered important management options for protecting water quality. Land costs and buffer performance, which are functions of local environmental characteristics, are likely to be key attributes in the selection process, especially when budgets are limited. In this article we demonstrate how a framework involving hydrologic models and binary optimization can be used to find the optimal buffer subject to a budget constraint. Two hydrologic models, SWAT and REMM, were used to predict the loads from different source areas with and without riparian buffers. These loads provided inputs for a binary optimization model to select the most cost efficient parcels to form a riparian buffer. This methodology was applied in a watershed in Delaware County, New York. The models were parameterized using readily available digital databases and were later compared against observed flow and water quality data available for the site. As a result of the application of this method, the marginal utility of incremental increases in buffer widths along the stream channel and the set of parcels to form the best affordable riparian buffer were obtained.     

Non-users’ trade-off between natural scenery, water quality, ecological functions and biodiversity conservation: a way to preserve wetlands

The inclusion of both non-use values and values placed by non-users provide more reliable results about the real values of wetlands. A choice experiment method was conducted to estimate the willingness to pay for environmental conservation in non-users’ communities adjacent to the Shadegan International Wetland (SIW) in Iran. A random parameter logit (RPL) model was developed to derive the marginal value and compensating surplus of the respondents for five attributes of the non-market values of SIW. The trade-off between five different wetland attributes showed that water quality improvement and biodiversity conservation were the most highly valued attributes. The results demonstrated that about 66 % of non-users were willing to donate money for the contribution in SIW conservation, suggesting that non-users have the potential to contribute to SIW conservation programs.     

PHYSICAL DETERMINANTS OF ECONOMIC VALUE OF RIPARIAN BUFFERS IN AN AGRICULTURAL WATERSHED1

ABSTRACT: Economic values of riparian buffers in a watershed are evaluated by the changes in the net economic return for farming with and without riparian buffers when achieving the same water quality objectives. The simulated water quality impacts of alternative farming systems using SWAT and experimental data for riparian buffers are used in a mathematical optimization model to estimate net economic return for farming subject to a water quality objective. Physical characteristics such as stream length, channel slope, average land slope, cropland percentage and several soil attributes are identified in the watershed using ARC/INFO GIS. A regression model is then used to evaluate the impacts of these physical characteristics on the estimated economic values of buffers. The study is conducted in Goodwater Creek watershed, Missouri. The results show the estimated economic value of buffers is significantly affected by some soil properties, stream length, and cropland percentage in watershed and can be used to improve the effectiveness of riparian buffers at watershed and regional levels.     

Valuing snorkeling visits to the Florida Keys with stated and revealed preference models

Coastal coral reefs, especially in the Florida Keys, are declining at a disturbing rate. Marine ecologists and reef scientists have emphasized the importance of establishing nonmarket values of coral reefs to assess the cost effectiveness of coral reef management and remediation programs. The purpose of this paper is to develop a travel cost-contingent valuation model of demand for trips to the Florida Keys focusing on willingness to pay (WTP) to preserve the current water quality and health of the coral reefs. The stated and revealed preference models allow the marginal valuation of recreationists to adjust depending on current and planned trip commitments in valuing nonmarginal policy changes in recreational opportunities. The integrated model incorporates key factors for establishing baseline amenity values for tourist dive sites, including perceptions of reef quality and dive conditions, the role of substitute sites, and the quality and availability of tourist facilities and recreation opportunities. The travel cost and WTP model differ in identifying critical variables and provide insight into the adjustment of trip decisions across alternative destination sites and the valuation of trips. In contrast to the travel cost model, a measure of the availability of substitute sites and total recreation activities does not have a significant impact on WTP valuations reported by snorkelers. Snorkelers engage in a relatively focused set of activities, suggesting that these recreationists may not shift expenditures to other sites or other recreation activities in the Florida Keys when confronted with increased access costs for the snorkeling experience.     

Predicting Periphyton Cover Frequency Distributions across New Zealand's Rivers

Regression models of mean and mean annual maximum (MAM) cover were derived for two categories of periphyton cover (filaments and mats) using 22 years of monthly monitoring data from 78 river sites across New Zealand. Explanatory variables were derived from observations of water quality variables, hydrology, shade, bed sediment grain size, temperature, and solar radiation. The root mean square errors of these models were large (75‐95% of the mean of the estimated values). The at‐site frequency distributions of periphyton cover were approximated by the exponential distribution, which has the mean cover as its single parameter. Independent predictions of cover distributions at all sites were calculated using the mean predicted by the regression model and the theoretical exponential distribution. The probability that cover exceeds specified thresholds and estimates of MAM cover, based on the predicted distributions, had large uncertainties (~80‐100%) at the site scale. However, predictions aggregated by classes of an environmental classification accurately predicted the proportion of sites for which cover exceeded nominated criteria in the classes. The models are useful for assessing broad‐scale patterns in periphyton cover and for estimating changes in cover with changes in nutrients, hydrological regime, and light.     

A choice experiment analysis for solid waste disposal option: a case study in Malaysia

In Malaysia, most municipal wastes currently are disposed into poorly managed 'controlled tipping' systems with little or no pollution protection measures. This study was undertaken to assist the relevant governmental bodies and service providers to identify an improved waste disposal management strategy. The study applied the choice experiment technique to estimate the nonmarket values for a number of waste disposal technologies. Implicit prices for environmental attributes such as psychological fear, land use, air pollution, and river water quality were estimated. Compensating surplus estimates incorporating distance from the residences of the respondents to the proposed disposal facility were calculated for a number of generic and technology-specific choice sets. The resulting estimates were higher for technology-specific options, and the distance factor was a significant determinant in setting an equitable solid waste management fee.     

A combined site proximity and recreation index approach to value natural amenities: an example from a natural resource management region of Murray-Darling Basin

This paper presents a hedonic property price model of rural land in a natural resource management region of the Murray-Darling Basin in Australia. In traditional hedonic models, the marginal value of environmental amenities is estimated using distance to or size of the environmental asset. The approach applied in this study offers the potential for a richer set of information, where environmental assets are described in terms of their 'recreational attractiveness'. The level of recreational attractiveness is represented as latent variables that are based on park facilities and recreational activities offered at each site. For a property in the study area that is 1?km away from the River Murray, moving half a kilometre closer will increase the property price by $245,000, holding every other variable constant at the mean. This value is magnified by $27,000 if the house is in an area where there is high river recreational attractiveness and drops by $14,000 if river recreational attractiveness is low. By including recreational quality indices in a typical hedonic framework that is corrected for spatial dependency, the model is able to capture how individuals value environmental amenities around their homes based on the site's natural characteristics as well as recreational services.     

Recreation benefits of natural area characteristics at the El Yunque National Forest

The paper applies the Contingent Valuation Method using a visitor survey to determine trip values to three rivers in northeastern Puerto Rico. Sample data were obtained from 984 interviews conducted in 13 sites during the summer months. The trip value is statistically decomposed into components representing natural features and recreation activities. The median net economic value of a river visit without waterfalls or foot trails is $96. Recreation at rivers with both waterfalls and foot trails has a median value of $138 per trip. The presence of waterfalls accounts for $23 and foot trails $19 per trip. This information can be pertinent for managers in selecting recreation site locations and protecting them from competing uses.     

Assessing Biological Integrity Using Freshwater Fish and Decapod Habitat Selection Functions

Comparison between the number of taxa observed and the number expected in the absence of human impact is an easily understood and ecologically meaningful measure of biological integrity. This approach has been successfully applied to the assessment of the biological quality of flowing water sites using macroinvertebrates with the river invertebrate and classification system (RIVPACS) and its derivatives. In this paper, we develop a method similar to the RIVPACS predictive model approach to assess biological integrity at flowing-water sites using freshwater fish and decapod assemblages. We extend the RIVPACS approach by avoiding the biotic classification step and model each of the individual species separately. These assemblages were sampled at 118 least impacted (reference) sites in the Auckland region, New Zealand. Individual discriminant models based on the presence or absence of the 12 most common fish and decapod species were developed. Using the models, predictions were made using environmental measures at new sites to yield the probability of the capture of each of the 12 species, and these were combined to predict the assemblage expected at sites. The expected assemblage was compared to that observed using an observed over expected ratio (O/E). The models were evaluated using a number of internal tests including jackknifing, data partitioning, and the degree to which O/E values differed between reference sites and a set of sites perceived to be impaired by human impacts.     

Using local knowledge to model asymmetric preference formation in willingness to pay for environmental services

This paper describes an approach to account for asymmetric preference formation in discrete choice models used for environmental valuation. The paper draws on data from a case study on preferences for environmental change resulting from a hypothetical rural development and conservation programme in Indonesia. Local knowledge on the current state of the environment was used to define an individual-specific status quo that consistently frames changes in a range of environmental services as gains or losses matching the perceptions of the local population living in the vicinity of a National Park. I estimated choice models that included separate parameters for increases and decreases in attribute levels for the environmental services and derived the indicators of local willingness to pay (WTP) corresponding to the bidirectional changes relative to the individual-specific status quo option. I found clear evidence of an asymmetric response to increase and decrease in attribute levels relative to the status quo. Ignoring asymmetric preference formation can therefore result in biased estimates of WTP indicators and welfare measures of change in cases where the outcomes of environmental programmes can plausibly result in both an increase and a decrease relative to a reference option. Compared to a symmetrical modelling approach, the combination of simultaneously accounting for asymmetric preference formation and preference heterogeneity in the choice model yielded additional insights that may be used to inform the development of local strategies towards biodiversity conservation.     

COMPUTER-OPTIMIZED STORMWATER TREATMENT (COST) PROGRAM: PHILADELPHIA CASE STUDY1

ABSTRACT: Two computer models, the Continuous Stormwater Pollution Simulation System (CSPSS) and the Computer Optimized Storm-water Treatment Program (COST), were developed to aid in performing water quality planning. This paper describes COST and its site specific applications to the Philadelphia urban area, using the results from an updated CSPSS receiving water simulation. COST provides a planning and conceptual design tool to identify the economically optimum combination of wet weather and dry weather pollution abatement alternatives. Economic analysis procedures incorporated are based on production theory and marginal cost analysis. This study demonstrates that by transforming BOD removal to reduction in low DO events, using CSPSS results, the benefits associated with pollutant removal can be accounted for explicitly by COST simulations. This is important because a pound of BOD removed from combined sewer overflow may be of more benefit to the receiving water than a pound of BOD removed from urban stormwater runoff. The selection of a pollution control strategy is often a difficult decision which should consider social, political, financial, and regulatory factors. It is suggested that such a selection can be based on evaluating the tradeoffs between total annual costs and receiving water improvements, as determined using the COST and CSPSS programs.     

Statistical evaluation of an agricultural land suitability model

The land evaluation and site assessment (LESA) method has been used extensively in the United States to assess agricultural land suitability for different localities. Despite widespread use, LESA models rarely have been evaluated in a systematic, comprehensive manner. This article discusses development of a LESA system for Hawaii, the first statewide application of the LESA methodology. The empirical model was implemented with a computerized geographic information system (GIS). The system's efficiency, ability to discriminate among land parcels, and robustness to subjective model parameter values are evaluated with statistical analyses and map overlays of GIS data. Results show great potential to simplify the original model specification, primarily through deletion of marginal site assessment factors. System output was generally insensitive to the numeric values selected for model parameters, with exception of the ratio used to combine the land evaluation (LE) and site assessment (SA) component scores. Relative supplies of the differing land attributes measured by the two components must be considered in determining an appropriate LE:SA ratio for a given area.     

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.     

Impact of data quality and model complexity on prediction of pesticide leaching

Accurate input data for leaching models are expensive and difficult to obtain which may lead to the use of "general" non-site-specific input data. This study investigated the effect of using different quality data on model outputs. Three models of varying complexity, GLEAMS, LEACHM, and HYDRUS-2D, were used to simulate pesticide leaching at a field trial near Hamilton, New Zealand, on an allophanic silt loam using input data of varying quality. Each model was run for four different pesticides (hexazinone, procymidone, picloram and triclopyr); three different sets of pesticide sorption and degradation parameters (i.e., site optimized, laboratory derived, and sourced from the USDA Pesticide Properties Database); and three different sets of soil physical data of varying quality (i.e., site specific, regional database, and particle size distribution data). We found that the selection of site-optimized pesticide sorption (Koc) and degradation parameters (half-life), compared to the use of more general database derived values, had significantly more impact than the quality of the soil input data used, but interestingly also more impact than the choice of the models. Models run with pesticide sorption and degradation parameters derived from observed solute concentrations data provided simulation outputs with goodness-of-fit values closest to optimum, followed by laboratory-derived parameters, with the USDA parameters providing the least accurate simulations. In general, when using pesticide sorption and degradation parameters optimized from site solute concentrations, the more complex models (LEACHM and HYDRUS-2D) were more accurate. However, when using USDA database derived parameters, all models performed about equally.     

The use of terrestrial ecoregions as a regional-scale screen for selecting representative reference sites for water quality monitoring

A process has been developed to select watersheds that are representative of terrestrial ecoregions and that are relatively undisturbed by human activity. Using an existing land classification system at two hierarchical levels of resolution, representative subsets (ecodistricts) of large-scale ecoregions were selected, on the basis of their physiographic, biological, and climatological attributes, to represent the ecoregions. This was achieved using a frequency distribution analysis of existing attribute data and choosing the ecodistrict most closely resembling the most common set of conditions for that ecoregion. Within each ecodistrict, river basins were selected through a best-judgement evaluation of land use, coupled with an assessment of the size and location of each river basin, in order to meet the condition of minimal human impact. Preliminary assessment of water quality data collected from six watersheds selected in this way suggests that the process is effective in targeting regional scale river basins exhibiting the desired characteristics.     

Comparing the Economic Value of Mountain Biking Estimated Using Revealed and Stated Preference

This research compares non-market valuation techniques by applying a count data travel cost method (TCM) and dichotomous choice contingent valuation method (CVM) to a form of recreation for which it has not been previously applied: mountain biking. Due to mountain biking's increasing popularity these estimates of benefits may be useful in addressing conflicts. One of the most famous mountain biking sites in the US (Moab, Utah) was chosen as the site for which to apply these two models. The benefits that were estimated for trips taken in the spring of 1996 are US$205 and US$235,for the TCM and CVM, respectively.These values are not statistically different using conventional significant levels.     

Convergent validity between willingness to pay elicitation methods: an application to Grand Canyon whitewater boaters

We directly compare trip willingness to pay (WTP) values between dichotomous choice contingent valuation (DCCV) and discrete choice experiment (DCE) stated preference surveys of private party Grand Canyon whitewater boaters. The consistency of DCCV and DCE estimates is debated in the literature, and this study contributes to the body of work comparing the methods. Comparisons were made of mean WTP estimates for four hypothetical Colorado River flow-level scenarios. Boaters were found to most highly value mid-range flows, with very low and very high flows eliciting lower WTP estimates across both DCE and DCCV surveys. Mean WTP precision was estimated through simulation. No statistically significant differences were detected between the two methods at three of the four hypothetical flow levels.