Values and Economics in Environmental Management: A Perspective and Critique

Several categories of non-market value have been identified for forests and other natural environments: use value, option value, altruism, bequest value, existence value and intrinsic value. In this paper, we view these values from a psychological perspective. Non-market values arise because natural resources play important roles in furthering human goals. This goal perspective contrasts with intrinsic value—the idea that natural objects have value as ends in themselves regardless of their relationship to man. Because of the lack of precise definitions, elements of intrinsic value are often mixed with existence value, creating confusion in the literature. These resource values need to be examined on a logical as well as an empirical basis. We argue that careful scrutiny reveals problems with both existence value and intrinsic value so that it is important to question their role in policy formation and analysis.     

Comparison of preservation values between Internet and interview survey modes: the case of Dokdo,South Korea

With the increase in employment of Internet surveys, there is a need to address how this survey mode affects inferences. Internet and interview modes are compared in estimating the preservation value of Dokdo, South Korea. Estimates of willingness to pay in the Internet survey are smaller than those in the interview survey. This may be attributable to the interview respondents being conscious of the presence of the interviewers, given the social importance of Dokdo to Koreans. Internet surveys may be effective in reducing overestimation of the willingness to pay in situations where potential social desirability is present.     

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.     

MEASURING THE VALUE OF POTABLE WATER IN PARTIALLY MONETIZED RURAL ECONOMIES1

ABSTRACT: A pilot study was conducted to test the potential of the Contingent Valuation Methodology (CVM) to reveal the value of non-market goods in a partially monetized subsistence economy. CVM was used to estimate the willingness to pay, in the form of labor, for potable drinking water in a rural river-based community located in the Esmeraldas state of northwest Ecuador. Surveys were administered by personal interviews with families living along the waterways of the Santiago river system who used river water for cooking, drinking, washing, and waste disposal. The mean willingness to pay represented over 23 percent of real income, or 1.4 days per week for a period of one year. Results of multiple regression analysis identified the history of water-related health problems and the number of working adults in a household as significant determinants of willingness to pay. Using a non-monetary, rather than a monetary measure of willingness to pay may provide a more accurate representation of value in a subsistence economy where the use of money is limited. The potential for CVM to measure the benefits of non-market goods in rural developing regions whose economies are only partially monetized is demonstrated.     

Recreation benefits of natural area characteristics at the El Yunque National Forest

The paper applies the Contingent Valuation Method using a visitor survey to determine trip values to three rivers in northeastern Puerto Rico. Sample data were obtained from 984 interviews conducted in 13 sites during the summer months. The trip value is statistically decomposed into components representing natural features and recreation activities. The median net economic value of a river visit without waterfalls or foot trails is $96. Recreation at rivers with both waterfalls and foot trails has a median value of $138 per trip. The presence of waterfalls accounts for $23 and foot trails $19 per trip. This information can be pertinent for managers in selecting recreation site locations and protecting them from competing uses.     

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     

Costs and benefits of improving wild salmon passage in a regulated river

This paper presents a cost-benefit analysis (CBA) of a trade-off between salmon and hydropower production in the Ume/Vindel River, northern Sweden. A distinctive element of this analysis is that estimated changes in resource conditions are based on detailed river-specific data. A salmon population model was used to develop the scenario and a novel willingness to pay (WTP) question, which caters for uncertainty in a different manner, provided an interval estimate. Non-use values are the major contributors to the benefit (96–517 millions of Swedish kronor (MSEK)) of increasing the stock of wild salmon. Sensitivity analysis suggests that the opportunity costs in terms of lost electricity are typically higher than the estimated benefits.