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.     

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.     

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.     

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.     

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.     

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.     

Elicitation of willingness to pay for upgradeable products with calibrated auction-conjoint method

Understanding consumer preferences is a key element of new product development and sustainable consumption. Among sustainable products, we consider new products with upgradability properties. Upgradeability helps to prolong the lifespan of a product, satisfying changing consumer preferences and needs. This additional created value must be measured by willingness to pay premiums. This paper uses a method which valorizes each attribute of the product and analyzes the determinants of these premiums. A key advantage of the calibrated auction-conjoint method is the possibility of estimating numerous attributes with a large number of attribute levels. The results support the idea that consumers are willing to pay premiums for upgradeable, sustainable products, although these premiums are rather weak for some durable products in the study.     

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.     

A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.     

Ranking the benefits of biodiversity: an exploration of relative values

Public concern about the alarmingly high rate of biodiversity loss has not been matched by public willingness to bear boundless costs to stem the tide of extinction. Because resources for conservation are limited, setting conservation priorities to use those resources effectively is crucial. To do so in a way that addresses people's most pressing concerns about biodiversity loss, managers and policy makers must understand those concerns. This study investigates preferences for an array of benefits associated with biodiversity and wildlife and the relative importance to people of each. A survey was administered to a sample of the US population to explore public preferences for types of benefits often associated with biodiversity: utilitarian (commodity and recreation), ecological (certain and uncertain), aesthetic, symbolic, and humanistic. Respondents were asked to rank hypothetical species presented in choice sets of three species, each described simply in terms of one type of benefit. A rank-ordered multinomial logit model was estimated to establish a ranking of the benefits and evaluate the sensitivity of the ranking to socio-demographic variables. The means of the sample predictions indicated the relative importance of each type of benefit. Confidence intervals were constructed to evaluate the extent to which the ranks could be distinguished from one another. Ecological functions were most important to survey respondents; commodity-based benefits and human attributes were of moderate importance; and recreation, aesthetics, and symbolic references in literature and art appeared to be least important.     

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.     

Hawaiian Residents’ Preferences for Miconia Control Program Attributes Using Conjoint Choice Experiment and Latent Class Analysis

Invasive species control or eradication is an important issue. On the islands of Hawaii, this problem is exceedingly evident when it comes to Miconia calvescens (Miconia). Adequate funding is needed to control or eradicate this invasive plant, but with the limited amount of funding available for the fight against Miconia, it is important to make sure that the fund is being spent in a way that addresses the needs or preferences of the Hawaiian residents. Using the conjoint choice experiment method, we designed a survey that would measure the Hawaiian residents’ willingness to support Miconia control program attributes. The attributes focused on were cost, biodiversity loss, extent of spread and soil erosion. Latent class approach was used to assess the surveyed population to see the different preferences by individual classes. The results show three different classes or groups of individuals with varying preferences for a control program of which cost and erosion were the top preferred attributes among the classes. These groups were defined by their socio-demographics of income, the length of residency and exposure to farming/gardening activities. Even with a preference for lower cost, a group showed willingness to pay more ($2.40) for a program that reduces erosion from high to low. Finally, the biodiversity attribute had very low consideration from a majority of the respondents showing the need for educating the public regarding its importance in preserving the unique environment in Hawaii.     

Residential Preferences for River Network Improvement: An Exploration of Choice Experiments in Zhujiajiao,Shanghai, China

River networks have both ecological and social benefits for urban development. However, river networks have suffered extensive destruction as a result of urbanization and industrialization, especially in China. River restoration is a growth business but suffers poor efficiency due to a lack of social understanding. Assessing the benefits of river system restoration and recognizing public preferences are critical for effective river ecosystem restoration and sustainable river management. This study used a choice experiment with a multinomial logit model and a random parameter logit model to assess respondents’ cognitive preferences regarding attributes of river networks, and their possible sources of heterogeneity. Results showed that riverfront condition was the attribute most preferred by respondents, while stream morphology was the least preferred. Results also illustrated that the current status of each of three river network attributes was not desirable, and respondents would prefer a river network with a “branch pattern,” that is “limpid with no odor,” and “accessible with vegetation.” Estimated willingness to pay was mainly affected by household monthly income, residential location, and whether respondents had household members engaged in a water protection career. The assessment results can provide guidance and a reference for managers, sponsors, and researchers.     

California households' willingness to pay for ‘green’ electronics

Concerns about rapid increases in the volume of electronic waste (e-waste) and its potential toxicity have sharpened policy makers' interest for extended producer responsibility to encourage manufacturers of consumer electronic devices (CEDs) to ‘design for the environment’. This paper examines consumer willingness to pay for ‘green’ electronics based on a 2004 mail survey of California households. Using ordered logit models, it was found that significant predictors of willingness to pay for ‘greener’ computers and cell phones include age, income, education, beliefs about the role of government for improving environmental quality, as well as environmental attitudes and behaviors, but neither gender nor political affiliation. Although most respondents are willing to pay only a 1% premium for ‘greener’ CEDs, innovation and EU directives may soon make them competitive with conventional CEDs.     

成渝地区大气污染生命统计价值评价研究——基于单边界二分式的条件价值法

大气污染生命统计价值是进行大气污染造成的人体健康损失核算和大气污染防治政策成效评估的关键指标。本文运用条件价值方法的单边界二分式函数模型,对成渝地区降低大气污染健康风险的平均支付意愿和生命统计价值进行了计算。主要结论如下:①成渝地区大气污染的平均支付意愿是1974.2元,生命统计价值为394.8万元。其中,四川部分地区和重庆地区的生命统计价值分别为402万元和392.8万元。②性别、家庭年收入和自我认知的身体健康状况等指标对平均支付意愿影响较大。③在生命价值评估方法中,国内普遍使用人力资本法,而国外主要使用条件价值法。条件价值法计算的生命统计价值高于人力资本法计算的结果,但与发达国家相比,我国成渝地区的生命统计价值相对较低。     

Benefit-cost analysis of spruce budworm (Choristoneura fumiferana Clem.) control: incorporating market and non-market values

This study employs a benefit-cost analysis framework to estimate market and non-market benefits and costs of controlling future spruce budworm (Choristoneura fumiferana) outbreaks on Crown forest lands in New Brunswick, Canada. We used: (i) an advanced timber supply model to project potential timber volume saved, timber value benefits, and costs of pest control efforts; and (ii) a recent contingent valuation method analysis that evaluated non-market benefits (i.e., changes in recreation opportunities and existence values) of controlling future spruce budworm outbreaks in the Province. A total of six alternative scenarios were evaluated, including two uncontrolled future budworm outbreak severities (moderate vs. severe) and, for each severity, three control program levels (protecting 10%, 20%, or 40% of the susceptible Crown land forest area). The economic criteria used to evaluate each scenario included benefit-cost ratios and net present values. Under severe outbreak conditions, results indicated that the highest benefit-cost ratio (4.04) occurred when protecting 10% (284,000 ha) of the susceptible area, and the highest net present value ($111 M) occurred when protecting 20% (568,000 ha) of the susceptible area. Under moderate outbreak conditions, the highest benefit-cost ratio (3.24) and net present value ($58.7 M) occurred when protecting 10% (284,000 ha) of the susceptible area. Inclusion of non-market values generally increased the benefit-cost ratios and net present values of the control programs, and in some cases, led to higher levels of control being supported. Results of this study highlight the importance of including non-market values into the decision making process of forest pest management.     

Analyzing the Social Factors That Influence Willingness to Pay for Invasive Alien Species Management Under Two Different Strategies: Eradication and Prevention

Biological invasions occur worldwide, and have been the object of ecological and socio-economic research for decades. However, the manner in which different stakeholder groups identify the problems associated with invasive species and confront invasive species management under different policies remains poorly understood. In this study, we conducted an econometric analysis of the social factors influencing willingness to pay for invasive alien species management under two different regimes: eradication and prevention in the Doñana Natural Protected Area (SW Spain). Controlling for the participation of local residents, tourists and conservationists, email and face-to-face questionnaires were conducted. Results indicated that respondents were more willing to pay for eradication than prevention; and public support for invasive alien species management was influenced by an individual’s knowledge and perception of invasive alien species, active interest in nature, and socio-demographic attributes. We concluded that invasive alien species management research should confront the challenges to engage stakeholders and accept any tradeoffs necessary to modify different conservation policies to ensure effective management is implemented. Finally, our willingness to pay estimates suggest the Department of Environment of Andalusian Government has suitable social support to meet the budgetary expenditures required for invasive alien species plans and adequate resources to justify an increase in the invasive alien species management budget.     

Household Valuation of Curbside Recycling

This paper looks at the willingness to pay for, and participate in, a curbside recycling programme based on a survey of 401 residents in Ogden, Utah. Modifying the Cameron & James (1987) econometric model to fit ordered-interval data, we estimate that the mean willingness to pay for curbside recycling is US $2.05 per month, and that 72% of the residents would willingly participate in such a programme. Furthermore, females, young people, college-educated, those currently recycling without monetary reward, those regarding recycling as beneficial to the community and nation, and those with relatively high incomes are willing to pay the most for curbside recycling.     

Community Forestry as Perceived by Local People Around Cross River National Park, Nigeria

The prior identification of local people’s preferences for conservation-development projects will help gear nature-conservation strategies toward the needs of different groups of local people. This will help policy-makers in designing a more acceptable and effective conservation strategy. This article reports a study of local perceptions of a community forestry project that aims to help improve the design as well as local acceptance of the project. The data originated from personal interviews conducted in communities around Okwangwo Division of the Cross River National Park in southeast Nigeria and were analysed using ordered logit and binary logit models. The results showed that >50% of the respondents were satisfied with the community forestry project. The respondents’ perceptions were mainly influenced by education, age, gender, and willingness to contribute money to tourism as well as the contributions of cocoa, banana, and afang (Gnetum africanum) to the respondents’ income. The results from this study have important implications for nature conservation in Nigeria and potentially other conservation contexts across the developing world.