Scope effects of respondent uncertainty in contingent valuation: evidence from motorized emission reductions in the city of Nairobi,Kenya

This study analyzed the scope effects of respondent uncertainty in contingent valuation (CV) by evaluating whether willingness to pay (WTP) estimates were sensitive to changes in the magnitudes of motorized emission reductions in the city of Nairobi, Kenya. The WTP estimates were elicited through the conventional payment card (PC), stochastic payment card (SPC) and the polychotomous payment card (PPC) formats. While SPC and PPC formats were used to capture respondent uncertainty, the PC format captured respondent certainty regarding the amounts individuals were WTP for emission reductions. Based on parametric and nonparametric analysis, results show that certain (PC) respondents stated significantly larger WTP amounts for larger emission reductions than for smaller reductions. Conversely, uncertain (SPC and PPC) respondents stated smaller amounts for larger emission reductions than certain (PC) respondents. The implication is that though respondents were sensitive to the scope of motorized emission reductions, respondent uncertainty lowered their sensitivity to scope.     

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

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

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.     

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.     

An experimental study to explore WTP for aviation carbon offsets: the impact of a carbon tax on the voluntary action

As Australia recently introduced a mandatory carbon price, this paper provides a rare perspective of how such institutional changes influence consumer preferences for voluntary climate action. When examined using three contingent valuation questions, the results show that the compliance mechanism induces a substantial reduction in the number of air travellers who are willing to pay extra for voluntary carbon offsets and in the payment amount, although the crowding-out effect is incomplete. A disproportionately larger welfare benefit is attached to the carbon offsets for a domestic flight than its international counterpart. Overall empirical findings advocate the continued role of voluntary programmes.     

Tiny Stowaways: Analyzing the Economic Benefits of a U.S. Environmental Protection Agency Permit Regulating Ballast Water Discharges

The U.S. Environmental Protection Agency has proposed permitting ballast water discharges—a benefit of which would be to reduce the economic damages associated with the introduction and spread of aquatic invasive species. Research on ship-borne aquatic invasive species has been conducted in earnest for decades, but determining the economic damages they cause remains troublesome. Furthermore, with the exception of harmful algal blooms, the economic consequences of microscopic invaders have not been studied, despite their potentially great negative effects. In this paper, we show how to estimate the economic benefits of preventing the introduction and spread of harmful bacteria, microalgae, and viruses delivered in U.S. waters. Our calculations of net social welfare show the damages from a localized incident, cholera-causing bacteria found in shellfish in the Gulf of Mexico, to be approximately $706,000 (2006$). On a larger scale, harmful algal species have the potential to be transported in ships’ ballast tanks, and their effects in the United States have been to reduce commercial fisheries landings and impair water quality. We examine the economic repercussions of one bloom-forming species. Finally, we consider the possible translocation within the Great Lakes of a virus that has the potential to harm commercial and recreational fisheries. These calculations illustrate an approach to quantifying the benefits of preventing invasive aquatic microorganisms from controls on ballast water discharges. The views expressed in this paper are those of the authors and do not necessarily reflect the views or policies of the U.S. Environmental Protection Agency.     

A double‐edged sword: Realities of artisanal and small‐scale mining for rural people in the Alaotra region of Madagascar

A growing number of people are entering the artisanal and small‐scale mining (ASM) sector worldwide. In Madagascar, millions of individuals depend on this informal activity. Through a case study in the Alaotra‐Mangoro region of Madagascar, our research aimed to understand the “bottom‐up” dynamics and ripple effects of the sector, by looking at the realities for rural communities where inhabitants are both directly and indirectly affected by ASM. We were interested in community members' and miners' perceptions of the socio‐economic and environmental impacts of ASM, and in identifying the factors attracting people living in one of the country's agricultural hubs to this activity. Our results show a wide diversity of push and pull factors leading people to enter the sector. Although many positive impacts of ASM exist for miners and communities within the vicinity of mines, most miner participants considered themselves worse off since starting to mine, highlighting the high risk and low probability of return of ASM. ASM's potential for local and national development will remain squandered if its negative impacts continue to go unmanaged. Accounting for local contexts and the ripple effects of ASM will be crucial in achieving safety and security for miners, and to tap into the benefits it may offer communities while minimising environmental damage.     

Integrating corporate social responsibility,health improvement,and community support in development programmes: a case for enhancing the application of health impact assessment in programme implementation in the Niger Delta region

Transnational corporations (TNCs) invest enormous resources in their corporate social responsibility (CSR) programmes in the Niger Delta region of Nigeria. However, the effectiveness and mode of execution of these CSR activities have been subjects of continuing debate. This research was therefore carried out to elicit the perspectives of members of four local communities about the impact of the CSR interventions in the areas of health improvement and participation by members of the communities in the Niger Delta. Semi-structured questionnaires were self-completed by 182 members of the local communities in the Niger Delta; the respondents gave detailed feedback about community feelings for TNCs and their CSR efforts. The findings showed that the people generally have negative views towards the CSR practices of the TNCs. The result of a two-paired t-test showed this to be true for both men and women (P =?.888, CI 95). While 69.8% of the respondents felt that the TNCs did not bring any development to their community, 87.9% had high fear of getting a disease due to the community they live in; interestingly, 90.1% wanted to be involved in decisions concerning their communities. This research therefore proposes the increased use of health impact assessment as an approach to integrate health considerations and community participation into the evaluation and implementation of development programmes in the Niger Delta. Such an approach has the potential to make CSR initiatives more effective, transparent, and minimise the tensions between communities and TNCs.