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.     

Air quality assessment by contingent valuation in Ji'nan, China

Along with urbanization and environmental deterioration within China, many residents' desire for improved air quality has increased. To address this topic, this study focuses on the relationship between poor air quality and residents' willingness to pay for improved air quality in the city of Ji'nan. As a means of quantifying an individual's willingness to pay (WTP) for improved air quality, a contingent valuation method (CVM) was employed. A sample of 1500 residents was chosen, based on the stratified sampling method. The respondents' WTP was then elicited through a series of face-to-face interviews, conducted using a range of hypothetical, open-ended scenario questions. The results showed that 59.7% of respondents were able to express a positive WTP, and that the average WTP was 100 Chinese Yuan (CNY) per person, per year. In order to establish the relationship between endogenous variables and WTP, both a Probit model on the probability of a positive WTP, and a stepwise regression model were constructed. Most parameters in the econometric analysis demonstrated the expected results. It was found that annual household income, expenditure on the treatment of respiratory diseases and workers in the family significantly influenced WTP. The rates of positive WTP and the monetary amount were also larger for men than for women. Unlike developed countries, most respondents regard air quality improvement as a government responsibility in that more than 40% of respondents had no incentive to bear the costs of attempting to achieve better air quality, indicating a relatively low environmental consciousness.     

Mountain substitutability and peak load pricing of high alpine peaks as a management tool to reduce environmental damage: A contingent valuation study

High alpine peaks throughout the world are under increasing environmental pressure from hikers, trekkers, and climbers. Colorado's “Fourteeners”, peaks with summits above 14,000 feet are no exception. Most of these peaks have no entrance fees, and reach ecological and social carrying capacity on weekends. This paper illustrates how a series of dichotomous choice contingent valuation questions can be used to evaluate substitutability between different alpine peaks and quantify the price responsiveness to an entrance fee. Using this approach, we find that peak load pricing would decrease use of popular Fourteeners in Colorado by 22%. This reduction is due almost entirely to substitution, rather than income effects. There is also price inelastic demand, as 60% of the hikers find no substitution for their specific Fourteener at the varying cost increases posed in the survey. The no substitute group has a mean net benefit of $294 per hiker, per trip, considerably higher than visitor net benefits in most recreational use studies.     

Willingness to pay for safe drinking water: Evidence from Parral, Mexico

A referendum-format contingent valuation (CV) survey is used to elicit household willingness to pay responses for safe and reliable drinking water in Parral, Mexico. Households currently adopt a variety of averting and private investment choices (e.g., bottled water consumption, home-based water treatment, and installation of water storage facilities) to adapt to the existing water supply system. These revealed behaviors indicate the latent demand for safer and more reliable water services, which is corroborated by the CV survey evidence. Validity findings include significant scope sensitivity in WTP for water services. Further, results indicate that households are willing to pay from 1.8% to 7.55% of reported household income above their current water bill for safe and reliable drinking water services, depending upon the assumptions about response uncertainty.     

Valuation of open space and conservation features in residential subdivisions

Conservation subdivision design has been promoted as a way to protect ecologically sensitive areas while maintaining housing densities comparable to standard subdivisions, but many developers and planners question the appeal of conservation design to consumers. This study was conducted to compare economic aspects of conservation subdivision design to standard subdivision design in the midwestern United States. Three methods were used to determine the value homebuyers have for embedded conservation features in residential areas: transactional analyses (to indicate the value homebuyers have expressed for such features in the past); hedonic analyses (to determine the proportion of present value of homes attributable to such features); and contingent valuation (to examine willingness to pay according to homebuyers' preferred features, an indicator of potential future investment). Transactional analyses were based on assessment and transaction data for homes in three conservation-oriented subdivisions and three standard subdivisions in Cedar Rapids, Iowa, United States. Hedonic price models were also derived from assessment and transaction data. Contingent valuation analyses were based on a survey of residents in the same six subdivisions. Transactional data indicated higher 5-year appreciation rates for conservation versus standard subdivision design. Hedonic price models revealed that well-integrated conservation features (e.g. protected stream corridors) within subdivisions have a positive effect on home prices. Sixty-six percent of all respondents indicated willingness to pay for more embedded open space. Maximum willingness to pay was related to several factors including income, gender, desired level of open space, and concern about urban development. Overall, these results indicate that consumer demand and willingness to pay for conservation subdivision design are positive and should not be considered a barrier to implementation.     

Evaluating the PM damage cost due to urban air pollution and vehicle emissions in Seoul, Korea

This study evaluated the prospective damage costs of PM(2.5) inhalation. We performed a health risk assessment based on an exposure-response function to estimate the annual population risk in the Seoul metropolitan city, Korea. Also, we estimated a willingness-to-pay (WTP) amount for reducing the mortality rate in order to evaluate a statistical life value. We combined the annual population risk and the value-of-statistical-life to calculate the damage cost estimate. In the health risk assessment, we applied the PM(2.5) relative risk to evaluate the annual population risk. We targeted an exposure population of 5,401,369 persons who were over the age of 30. Using a Monte-Carlo simulation for uncertainty analysis, we estimated that the population risk of PM(2.5) inhalation during a year in Seoul is 2181 premature deaths for acute exposure and 18,510 premature deaths for chronic exposure. The monthly average WTP for 5/1000 mortality reduction over ten years is $20.20 USD (95% C.I: $16.60-24.50) and the implied value-of-statistical-life (VSL) is $485,000 USD (95% C.I: $398,000-588,000). The damage cost estimate due to risk from PM(2.5) inhalation in Seoul is about $1057 million USD per year for acute exposure, and $8972 million USD per year for chronic exposure. It is important to note that this cost estimate does not reflect all health damage cost estimates in this urban area. This recommendation is a model for evaluating a mortality risk reduction and as such we must re-evaluate an integrated application of morbidity risk.     

Elements of a cost-benefit analysis for improving salmonid spawning habitat in the River Wye

Contingent valuation methods were used to derive an economic value for salmonid spawning habitat restoration. Anglers' willingness to pay for such restoration and farmers' willingness to accept compensation for lost productivity due to the restoration were investigated using questionnaire and face-to-face surveys, respectively. These elements were combined with the Wye Habitat Improvement Project (WHIP) budget into a cost-benefit analysis (CBA) based upon direct use values only. The CBA assumed that the WHIP will improve salmonid stock. Different levels of investment were considered and the CBA gave a positive net present value indicating an economically viable project and benefit-to-cost ratios greater than one for minor projects. However, the number of anglers using the Wye would need to double or triple in order to justify the full WHIP budget. Management of an environmental resource must consider users' and stakeholders' needs and opinions. It was found that anglers on the Wye value habitat/scenery in its own right and that this played an important part in the activity. Farmers' agreement regarding involvement in such projects was more likely to be determined by their political and ethical views than receiving an economic compensation.     

Valuation of improved air quality in Utah County,USA

A contingent valuation approach was used to estimate maximum willingness-to-pay for improved air quality in Utah County. Respondents demonstrated a high rate of concern over poor air quality and averaged a willingness-to-pay of $37 per month per household. Noniterative openended questions were used successfully. No information bias was observed but benchmark values did influence bids. Willingness-to-pay for improved air quality was large for both sexes and across all income groups, ages, and occupations.     

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.     

Perceived and actual wildfire danger: An economic and spatial analysis study in Colorado (USA)

Over the last 20 years, costs for wildfire initial attack in the U.S. have increased significantly. The increased cost relates to wildfire suppression practices, as well as the growing number of homes in the wildland urban interface. Requiring wildland urban interface residents to pay an annual tax for their wildfire risk could lower costs to the general taxpayer. Willingness-to-pay for wildfire prevention, in relation to both perceived and actual wildfire danger, was the focus of this study. Surveyed Colorado wildland urban interface residents were found to have a high awareness of wildfire risk and were willing-to-pay over $400 annually to reduce this risk. Respondents' beliefs about wildfire frequency were comparable to the wildfire regimes of their areas' pre-European settlement.     

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.     

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.     

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).     

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.     

Estimating the benefits and costs to mountain bikers of changes in trail characteristics,access fees,and site closures: choice experiments and benefits transfer

Mountain biking is an increasingly popular leisure pursuit. Consequences are trail degradation and conflicts with hikers and other users. Resource managers often attempt to resolve these problems by closing trails to mountain biking. In order to estimate the impact of these developments, a model has been devised that predicts the effects of changes in trail characteristics and introduction of access fees, and correlates these with biker preference on trail selection. It estimates each individual's per-ride consumer's surplus associated with implementing different policies. The surplus varies significantly as a function of each individual's gender, budget, and interest in mountain biking. Estimation uses stated preference data, specifically choice experiments. Hypothetical mountain bike trails were created and each surveyed biker was asked to make five pair-wise choices. A benefit-transfer simulation is used to show how the model and parameter estimates can be transferred to estimate the benefits and costs to mountain bikers in a specific area.     

Health benefits valuation of regulatory intervention for air pollution control in thermal power plants in Delhi,India

This study estimates minimum marginal health benefits (morbidity reduction only) of air pollution control and total health benefits arising from regulatory intervention regarding the adoption of the World Bank emission guidelines (WBEG) for thermal power plants (TPPs) in Delhi. The Industrial Source Complex-Short-Term Version–3 (ISCST3) model has been used to estimate the contribution to air pollution from TPPs. The household health production function (avertive behaviour) has been used to value health benefits of air pollution control. The study revealed that the ambient air pollution due to TPPs is reduced by between 62.17% to 83.45% by adopting the WBEG. Annual marginal benefit due to reduction in exposure to air pollution by 1 μg m^?3 is estimated to be US$0.353 per person. Total annual health benefits for adopting the WBEG for TPPs are estimated at US$235.19 million. This study provides a novel methodology to evaluate health benefits of regulatory intervention.     

Effects of Recent Volcanic Eruptions on Aquatic Habitat in the Drift River, Alaska, USA: Implications at Other Cook Inlet Region Volcanoes

/ Numerous drainages supporting productive salmon habitat are surrounded by active volcanoes on the west side of Cook Inlet in south-central Alaska. Eruptions have caused massive quantities of flowing water and sediment to enter the river channels emanating from glaciers and snowfields on these volcanoes. Extensive damage to riparian and aquatic habitat has commonly resulted, and benthic macroinvertebrate and salmonid communities can be affected. Because of the economic importance of Alaska's fisheries, detrimental effects on salmonid habitat can have significant economic implications. The Drift River drains glaciers on the northern and eastern flanks of Redoubt Volcano. During and following eruptions in 1989-1990, severe physical disturbances to the habitat features of the river adversely affected the fishery. Frequent eruptions at other Cook Inlet region volcanoes exemplify the potential effects of volcanic activity on Alaska's important commercial, sport, and subsistence fisheries. Few studies have documented the recovery of aquatic habitat following volcanic eruptions. The eruptions of Redoubt Volcano in 1989-1990 offered an opportunity to examine the recovery of the macroinvertebrate community. Macroinvertebrate community composition and structure in the Drift River were similar in both undisturbed and recently disturbed sites. Additionally, macroinvertebrate samples from sites in nearby undisturbed streams were highly similar to those from some Drift River sites. This similarity and the agreement between the Drift River macroinvertebrate community composition and that predicted by a qualitative model of typical macroinvertebrate communities in glacier-fed rivers indicate that the Drift River macroinvertebrate community is recovering five years after the disturbances associated with the most recent eruptions of Redoubt Volcano. KEY WORDS: Aquatic habitat; Volcanoes; Lahars; Lahar-runout flows; Macroinvertebrates; Community structure; Community composition; Taxonomic similarity