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.     

区域生态环境经济价值评估方法述评

阐述了区域生态环境经济价值评估的意义,对区域生态环境经济价值评估方法进行了述评,介绍了国内外有关区域生态环境经济价值研究的主要进展,探讨了目前研究中存在的主要问题、难点和研究的主要趋势.认为区域生态环境经济价值研究对于实现我国区域生态环境与人类可持续发展具有重要意义,研究完善价值评估理论与技术方法是亟待解决的问题.     

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.     

Reasonable creatures: rights and rationalities in valuing the countryside

Debate on the economic valuation of the countryside is typically polarized between absolutist critics who would deny it any valid role and equally fervid proponents who see its techniques as the only way of integrating the environment into policy making. Such debate is structured by conflicting notions of rights, responsibilities and values, rather than by consideration of the role of technique in practical policy‐making. This paper attempts to take the debate forward and begins by examining the ways in which rights, responsibilities and values have been historically created. The techniques of economic valuation rest on particular conceptions of these, making them irreducibly political, and at the same time their results are often used to justify political decisions. Yet the proper role of technique ought to be to explore options. Provided that the sort of clarification that economic valuation offers is understood, it may, along with other types of technique, be used to open up the decision making process.     

A contingent valuation of the Mar Lodge Estate,Cairngorm Mountains,Scotland

The contingent valuation method is applied to the economic valuation of a significant environmental resource in the Scottish Highlands. Use and non‐use values are estimated. The results of such studies might be used to assist decision makers assess the case for public intervention to support the provision of environmental non‐market goods.     

A new recoding method for treating protest responses in contingent valuation studies using travel cost data

In this paper, it is proposed one method to recode protest responses applicable to the simple dichotomous format valuation question made to visitors to natural environment in contingent valuation studies. Those respondents that give a protest response but have a travel cost greater than the bid proposed in the valuation question are recoded as an affirmative answer to the proposed payment. The economic justification lies in the minimum willingness to pay for enjoying the environment that travel cost reveals, while valuation question tries to obtain information about respondent maximum willingness to pay. Recoding allows to recover information and to improve estimates, accuracy. It also avoids computational complexity associated with sample selection models used to avoid biases derived from excluding protest responses.     

Can Red Pay for Blue? Methods to Estimate the Added Value of Water in Residential Environments

As a result of climate changes, more land is now needed in the Netherlands for water retention in towns and the countryside. Recently, this perceived need has resulted in new forms of water management and spatial planning strategies. Multi-functional land use is an option such as housing in combination with retention lakes. Some argue that the market potential is high and that water has an added value in residential environments. This added value could be used to compensate for non-profitable investments such as the creation of lakes. The key question is how to value this amenity. It is argued that non-economists often assume that a valuation is just a technique. The authors challenge this by presenting an overview of economic perspectives as well as techniques. A literature review reveals the main valuation perspectives and suggests estimated added values of 10‐15% for the seashore, 5‐10% for river locations (streams), and 5% for lakes.     

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.     

Ethical Beliefs and Behaviour in Contingent Valuation Surveys

A common assumption in the economic valuation of the environment is that environmental resources can essentially be treated identically to produced goods and services in estimating welfare measures. The most critical aspect of this assumption in this regard is that individuals are willing to trade-off environmental quality changes in exchange for changes in their income. In this paper, we briefly review some of the conceptual arguments over this issue, and existing empirical evidence, before presenting the results of a new pilot study which addresses some of the possible problems in viewing the environment in this fashion.     

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.     

Effects of spatial and temporal scales on cultural services valuation

The monetary valuation of ecosystem services has proved to be a powerful tool for influencing management decisions, as it can be used to quantify the relative importance of various ecosystem functions. However, these valuation methods are rarely implemented with adequate care; in particular, they do not consider spatial and temporal variations in the services offered and demanded. This paper examines the effect of heterogeneity on the valuation of cultural services offered by the Doñana natural protected area in Spain. We apply the zonal travel cost method at various spatial scales, and the individual travel cost method at various temporal scales. We conclude that economic valuation techniques must account for spatial and temporal heterogeneity if they are to provide accurate and realistic information.     

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.     

TMDL Implementation in Agricultural Landscapes: A Communicative and Systemic Approach

Increasingly, total maximum daily load (TMDL) limits are being defined for agricultural watersheds. Reductions in non-point source pollution are often needed to meet TMDL limits, and improvements in management of annual crops appear insufficient to achieve the necessary reductions. Increased adoption of perennial crops and other changes in agricultural land use also appear necessary, but face major barriers. We outline a novel strategy that aims to create new economic opportunities for land-owners and other stakeholders and thereby to attract their voluntary participation in land-use change needed to meet TMDLs. Our strategy has two key elements. First, focused efforts are needed to create new economic enterprises that capitalize on the productive potential of multifunctional agriculture (MFA). MFA seeks to produce a wide range of goods and ecosystem services by well-designed deployment of annual and perennial crops across agricultural landscapes and watersheds; new revenue from MFA may substantially finance land-use change needed to meet TMDLs. Second, efforts to capitalize on MFA should use a novel methodology, the Communicative/Systemic Approach (C/SA). C/SA uses an integrative GIS-based spatial modeling framework for systematically assessing tradeoffs and synergies in design and evaluation of multifunctional agricultural landscapes, closely linked to deliberation and design processes by which multiple stakeholders can collaboratively create appropriate and acceptable MFA landscape designs. We anticipate that application of C/SA will strongly accelerate TMDL implementation, by aligning the interests of multiple stakeholders whose active support is needed to change agricultural land use and thereby meet TMDL goals.     

ASSESSING THE ECONOMIC BENEFITS OF GROUND WATER FOR ENVIRONMENTAL POLICY DECISIONS1

ABSTRACT: The full range of environmental and economic services of ground water need to be accounted for in policy decisions. Non-recognition of these services imputes a lower value for the ground water resource in establishing policies. We describe a conceptual framework for identifying and measuring the economic value of groundwater. The valuation framework links changes in physical characteristics of ground water to services provided by ground water and the economic effects of changes in ground water services. In addition to the framework, we develop a general protocol to follow for assessing the benefits of ground water policies. Application of the protocol will aid in establishing structure and consistency across policy assessments and improve the accuracy and completeness of benefit estimates, avoid double-counting problems, and eliminate duplication of ground water valuation efforts.     

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.     

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.     

Agreement about commodity agreements?

In spite of the shifts in global economic power the scope for increased intervention in commodity markets remains restricted. We have witnessed the beginnings of some changes with the increased willingness of the richer countries to discuss the commodity issue. The interest in individual commodity agreements is likely to be extended as consumers place a higher valuation on security of supplies but commodity agreements can only secure moderate and limited objectives. They represent only one of a number of tools which are available in the attempt to secure a new world economic order and they will need to be used in conjunction with increased flows of foreign aid, trade liberalisation, and schemes of compensatory finance. The integrated approach to commodities seems fraught with difficulties as does any realistic scheme for the indexation of commodity prices.     

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.     

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.