Economic valuation of urban forest benefits in Finland

Urban development projects may cause loss of amenity values of green areas, which should be taken into consideration in planning. Therefore, quantitative information on residents' valuation concerning urban forests is needed for assessing urban land use. The purpose of this investigation was to study the valuation of urban forests in two different urban environments Joensuu and Salo, Finland. The aims were to study the attitudes towards and benefits related to the use of urban forests and, in particular, to measure the valuations in monetary terms using contingent valuation, i.e. measure the residents' willingness-to-pay for larger wooded recreation areas and for small forested parks. Urban forests were seen in both towns as clearly producing positive benefits rather than causing negative effects. The negative features of forests were related to the management of the areas rather than their existence. The main values were related to nature and social functions of forests. In contrast, timber production achieved a distinctively low priority in both study towns. The results stress the importance of defining urban forest policies for municipalities in Finland. More than two-thirds of the respondents were willing to pay for the use of recreation areas. Good location and active management raised the average WTP. Moreover, approximately half of the respondents were willing to pay for preventing construction in urban forests. The results also show that the monetary value of amenity benefits in recreation areas is much higher than the present maintenance costs. The examples concerning the advantageousness of construction on green areas suggest that a limit could be found where the infill of housing areas is not worthwhile from the point of view of society, if the losses of green space benefits are taken into account.     

Web-based surveys as an alternative to traditional mail methods

Environmental economists have long used surveys to gather information about people's preferences. A recent innovation in survey methodology has been the advent of web-based surveys. While the Internet appears to offer a promising alternative to conventional survey administration modes, concerns exist over potential sampling biases associated with web-based surveys and the effect these may have on valuation estimates. This paper compares results obtained from a travel cost questionnaire of visitors to Fraser Island, Australia, that was conducted using two alternate survey administration modes; conventional mail and web-based. It is found that response rates and the socio-demographic make-up of respondents to the two survey modes are not statistically different. Moreover, both modes yield similar consumer surplus estimates.     

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.     

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.     

Well-being for all? The social distribution of benefits gained from woodlands and forests in Britain

Well-being is a positive physical, mental and social state and has increasingly become an area of interest to researchers and policy-makers internationally. This paper presents results from research that analyses the well-being benefits gained by different sections of society through viewing, engaging with, and accessing woodlands and forests in Britain. We draw on 31 studies undertaken since 2001 and present a meta-analysis of quantitative data and a meta-synthesis of qualitative data to explore the range of benefits and associated activities in woodlands, and their social distribution. We also present a state-of-the-art typology of well-being benefits for woodlands in Britain. The findings illustrate the wide range of well-being benefits gained by different social groups through various forms of engagement with and activities undertaken in woodlands. We illustrate the wide range of meanings and values attached to trees and woodlands across different social groups. The evidence also illustrates how carefully designed and targeted interventions can be particularly effective in enabling and encouraging people to visit woodland sites, to participate or get involved in new activities and, therefore, to realise a range of well-being benefits.     

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.     

Wildfire effects on hiking and biking demand in New Mexico: a travel cost study

We use a travel cost model to test the effects of wild and prescribed fire on visitation by hikers and mountain bikers in New Mexico. Our results indicate that net benefits for mountain bikers is $150 per trip and that they take an average of 6.2 trips per year. Hikers take 2.8 trips per year with individual net benefits per trip of $130. Both hikers' and mountain bikers' demand functions react adversely to prescribed burning. Net benefits for both groups fall as areas recover from prescribed burns. Because both visitation and annual recreation benefits decrease to these two types of visitors, this gives rise to multiple use costs associated with prescribed burning. With respect to wildfire, hikers and mountain bikers both exhibit decreased visitation as areas recover from wildfires, however, only hikers indicate an increase in per trip net benefits. Bikers' demand effectively drops to zero. These results differ from previous findings in the literature and have implications for efficient implementation of the National Fire Plan and whether prescribed burning is a cost effective tool for multiple use management of National Forests. Specifically, that fire and recreation managers cannot expect recreation users to react similarly to fire across recreation activities, or different geographic regions. What is cost effective in one region may not be so in another.     

Impacts of changes in water quality on recreation behavior and benefits in Finland

The implementation of the European Union Water Framework Directive (WFD) requires nationally generalizable estimates of the benefits of protecting inland and coastal waters. As an alternative to benefit transfers and meta-analyses, we utilize national recreation inventory data combined with water quality data to model recreation participation and estimate the benefits of water quality improvements. Using hurdle models, we analyze the association of water clarity in individuals' home municipalities with the three most common water recreation activities – swimming, fishing and boating. The results show no effect on boating, but improved water clarity would increase the frequency of close-to-home swimming and fishing, as well as the number of fishers. Furthermore, to value the potential benefits of the WFD, we estimate the consumer surplus of a water recreation day using a travel cost approach. A water policy scenario with a 1-m improvement in water clarity for both inland and coastal waters indicates that the consumer surplus would increase 6% for swimmers and 15% for fishers. In contrast to previously estimated abatement costs to improve water quality, net benefits could turn out to be positive. Our study is a promising example of applying existing national recreation inventory data to estimate the benefits of water quality improvements for the purposes of the WFD.     

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.     

Valuing regional geoscientific data acquisition programmes: addressing issues of quantification,uncertainty and risk

Geological surveys worldwide are involved with research in support of sustainable mineral resource development.The socio-economic benefits to be derived from these activities, however, continue to raise organisational and government sector questions. Fundamental questions include whether or not the resources committed are appropriate and in economic balance with the total benefits to be derived. Another question concerns the degree to which such services should be funded by the community at large. These questions in turn raise important issues regarding the role and cost of geological surveys, the impact of their services, and how they should maximise community benefit from their activities and expertise. To assess the value of geoscientific information,standard valuation processes need to be modified. This paper reports on a methodology designed to quantify the 'worth' of programmes upgrading regional geoscientific infrastructure. An interdisciplinary approach is used to measure the impact of geoscientific information using quantitative resource assessment, computer-based mineral potential modelling, statistical analysis and risk quantification to model decision-processes and assess the impact of additional data. These modelling stages are used to address problems of complexity,uncertainty and credibility in the valuation of geoscientific data. A case study demonstrates the application of the methodology to generate a dollar value for current regional data upgrade programmes in the Geological Survey of Queensland. The results obtained are used for strategic planning of future data acquisition programmes aimed at supporting mineral resource management and stimulating effective exploration activity.     

A proposed methodology for measuring incremental environmental benefits from using constructed wetlands to control agricultural non-point-source pollution

A binary response estimation procedure using contingent valuation data is proposed for estimating the incremental environmental benefits associated with the use of constructed wetlands to control agricultural waste-water runoff. The model uses two binary responses per individual while circumventing the non-independence problems associated with follow-up valuation questions. Case study results suggest that the methodology provides a potentially effective means for measuring the non-market benefits of constructed wetlands in addition to water-quality maintenance.1998 Academic Press     

The costs and benefits of reforestation in Liping County, Guizhou Province, China

Reducing greenhouse gases in the atmosphere is becoming a pressing issue for the global community. Afforestation and reforestation are promoted worldwide as an effective means of sequestering carbon. For its national interest and global concerns, China has made great efforts to protect its existing forests and develop programs of afforestation and reforestation. Based on two surveys recently conducted in Liping County, Guizhou province, this paper investigates the economic changes associated with the implementation of the "Grain For Green" policy. Based on the analytical framework of benefit cost analysis, this paper concludes that the implementation of the reforestation of sloping agricultural land policy would not be possible if there were no government subsidies for the peasants. The short term economic returns of land and labour from forestation are substantially lower than those generated from grain or cash crop production on the steep slope lands. The government subsidies provide great economic incentives for peasants to take part in the project. The subsidies in fact have elevated peasant income in rural Liping. The estimated potential economic returns of plantations over the long run indicate that the removal of the government financial subsidies would not create an economic crisis for the peasants if the current market conditions continue.     

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.     

How to correctly assess mortality benefits in public policies

This paper concerns the difficulty of taking long-term effects on health into account in an economic valuation. Indeed, public decision makers should incorporate the cessation lag between implementation of an abatement policy and achievement of all of the expected mortality-related benefits for any projects involving health impacts. This paper shows how this time lag problem can be handled by proposing two approaches—either in terms of deaths avoided or of life years saved—within a dynamic perspective. The main findings are that long-term health benefits calculated by standard methods and widely applied to adverse health effects should be corrected downwards when incorporated into an economic analysis. The magnitude of correction depends on the discount rate, on technical choices dealing with epidemiology and on the method chosen to assess mortality benefits.     

Quantifying the human health benefits of curbing air pollution in Shanghai

Urban development in the mega-cities of Asia has caused detrimental effects on the human health of its inhabitants through air pollution. However, averting these health damages by investing in clean energy and industrial technologies and measures can be expensive. Many cities do not have the capital to make such investments or may prefer to invest that capital elsewhere. In this article, we examine the city of Shanghai, China, and perform an illustrative cost/benefit analysis of air pollution control. Between 1995 and 2020 we expect that Shanghai will continue to grow rapidly. Increased demands for energy will cause increased use of fossil fuels and increased emissions of air pollutants. In this work, we examine emissions of particles smaller than 10 microm in diameter (PM10), which have been associated with inhalation health effects. We hypothesize the establishment of a new technology strategy for coal-fired power generation after 2010 and a new industrial coal-use policy. The health benefits of pollution reduction are compared with the investment costs for the new strategies. The study shows that the benefit-to-cost ratio is in the range of 1-5 for the power-sector initiative and 2-15 for the industrial-sector initiative. Thus, there appear to be considerable net benefits for these strategies, which could be very large depending on the valuation of health effects in China today and in the future. This study therefore provides economic grounds for supporting investments in air pollution control in developing cities like Shanghai.     

Mortality and morbidity benefits of air pollution (SO2 and PM10) absorption attributable to woodland in Britain

Forests in Britain produce social and environmental benefits, in addition to marketable timber outputs. One such non-market benefit is the reduction in air pollution, linked to health impacts (mortality and morbidity). This study assesses the benefits of SO2 and PM10 absorption by trees in terms of extending life expectancy of the population and reducing hospital admissions. Working at a resolution of 1 km2 with woodland over 2 ha, it is estimated that, for Britain as a whole, woodland saves between 5 and 7 deaths, that would otherwise have been brought forward, and between 4 and 6 hospital admissions each year. The economic value of the health effect of woodland is estimated to be at least 900,000 pounds Sterling per year. Smaller areas of woodland, often located closer to population, sometimes strategically planted close to pollution sources, will generate additional air pollution absorption benefits to those estimated here. Researching such benefits would require more detailed data than is available at present for a national study. However, the health benefits of woodland are relatively small in comparison to other non-market forestry benefits.     

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.     

A travel cost study to estimate recreational value for a bird refuge at Lake Manyas, Turkey

This paper investigates the recreational economic value of bird watching in the Ku?cenneti National Park (KNP) at Lake Manyas, one of the Ramsar sites of Turkey and an important endangered species habitat. The lake and KNP provide considerable benefits for the region, although they have faced many environmental conflicts due to diverse stakeholders’ needs. An economic valuation for the benefits provided by the KNP is important data for stakeholders and local authorities. The travel cost method is used to estimate recreational demand for the KNP. The recreational value of the KNP is 103,320,074 USD annually. Results shed light on important policy issues and help to resolve conflicts among stakeholders. This calculated value is considerably higher than the annual investment and operation expenditures of the KNP. Sustainability of the important species around the lake could be achieved if the region's inhabitants are compensated by KNP visitors.