Household willingness to pay for stream restoration on private and public land: Evidence from the Baltimore metropolitan region

Stream restoration is one of the most widely used interventions to mitigate urban stormwater impacts and improve water quality. Government agencies have typically focused urban stream restoration efforts on public lands that they already own, even though a substantial portion of stream miles in highly urbanized areas occur on privately owned land. Yet, limited research exists to distinguish household willingness to pay (WTP) for stream restoration occurring on private versus public land. In this study, we use a choice experiment to analyze how household WTP for stream restoration attributes vary by land ownership and distance to the restoration project. Our empirical results indicate that streambank stabilization approaches have positive WTP estimates that are substantially larger in magnitude than those related to riparian vegetation management for clearing or planting trees. In general, estimated total household WTP for each of the four restoration design scenarios on public land is higher than when the same restoration design is located on private land. Nonetheless, estimated household WTP for each restoration design scenario on private land is substantial, retaining the majority of the value found on public land in all cases.     

Revealing Preferences for Reductions of Public Risks: An Application of the CV Approach

In this paper the contingent valuation method (CVM) is applied to public risk reduction. Theory suggests that the size of the stated willingness to pay (WTP) for risk reduction depends on private activities aimed at reducing the risk level for the individual. The empirical results suggest that considering private averting activities increases the explanatory power of the estimated WTP function significantly. Thus, WTP passes the scope test which proposes that larger reductions from a larger baseline risk should be valued higher than lower risk reductions from a lower baseline risk. Furthermore, we demonstrate that the follow-up response format induces anchoring effects.     

Convergent validity between willingness to pay elicitation methods: an application to Grand Canyon whitewater boaters

We directly compare trip willingness to pay (WTP) values between dichotomous choice contingent valuation (DCCV) and discrete choice experiment (DCE) stated preference surveys of private party Grand Canyon whitewater boaters. The consistency of DCCV and DCE estimates is debated in the literature, and this study contributes to the body of work comparing the methods. Comparisons were made of mean WTP estimates for four hypothetical Colorado River flow-level scenarios. Boaters were found to most highly value mid-range flows, with very low and very high flows eliciting lower WTP estimates across both DCE and DCCV surveys. Mean WTP precision was estimated through simulation. No statistically significant differences were detected between the two methods at three of the four hypothetical flow levels.     

Integrating nature-based tourism and forestry in private lands under heterogeneous visitor preferences for forest attributes

Developing nature-based tourism in private lands calls for new mechanisms to consolidate the interests of the tourism industry, visitors, and landowners. This choice experiment study elaborates on the heterogeneity of visitors’ preferences and willingness to pay (WTP) for enhanced forest amenities and ecosystem services. The survey, targeting domestic and foreign tourists visiting the Ruka-Kuusamo area in Finland, considered four attributes: landscape quality, outdoor routes, forest biodiversity, and carbon sequestration. For observed heterogeneity, the visitors were grouped by their attitudes towards forest management. Unobserved heterogeneity in visitors’ choice behaviour and WTP was examined with the latent class model. While most visitors had environmentally friendly attitudes and were willing to pay, especially for enhanced landscape quality and biodiversity, considerable heterogeneity was revealed in terms of three segments with distinctive attitudes, choice behaviour and WTP. The variation in WTP has important implications for the design of a scheme of payments for environmental management.     

Contingent Valuation and Real Economic Commitments: Evidence from Electric Utility Green Pricing Programmes

This paper presents the findings of two 'green pricing' studies conducted to evaluate public support of utilities' investments in renewable energy technologies. These studies compared hypothetical WTP statements with actual payment commitments. The results of these studies indicate that the CVM can be an accurate indicator of an individual's WTP, but that it is an unreliable predictor of which individuals will actually pay. This has important implications for aggregating mean WTP estimates of the value of environmental benefits. It also suggests that market simulations can be useful for predicting programme participation rates when voluntary donations are used as a payment vehicle.     

Assessing the value of pastoral farming in the Alps using choice experiments: evidence for public policies and management

Alpine livestock farms consist of pastures, buildings, people and animals, and are a key element for the economy in the Alps. Pastures and huts are often owned by the local municipalities, who lease them to private tenants. However, this activity is often no longer profitable, and thus pastures and huts remain unused and abandoned. This research provides an economic estimate of pastoral farming using the choice experiment (CE) method, also assessing the willingness to pay (WTP) for pastoral farming functions. The study examines different scenarios of upland farm management in order to provide recommendations for public owners on how to better manage these assets. The case study is located in an alpine area in northern Italy. Our results show a higher WTP for the attributes related to the traditional Alpine agricultural economy, with an emphasis on grazing. Several policy implications regarding agricultural renewal and support for mountain livelihoods are highlighted in the conclusions.     

WILLINGNESS TO PAY FOR FLOOD RISK REDUCTION AND ITS DETERMINANTS IN JAPAN1

ABSTRACT: This study aimed to clarify public preferences for flood control measures in Japan, willingness to pay (WTP), and the main factors involved in WTP by applying the contingent valuation method. Findings showed that most residents surveyed expected some flood control measures, and revealed a diversity of interest in river management. WTP levels for different measures ranged from a mean of ¥2,887 to ¥4,861 and from a median of ¥1,000 to ¥2,000. However, WTP for additional flood risk reduction beyond initial levels was found to be zero. This was considered to be because WTP for flood risk reduction must be determined within a multi‐risk context. WTP for flood control measures may increase with per capita income, individual preparedness, and/or experience with flooding, but may decrease with distance from a river, acceptability of flood risk, and provision of environmental information. Furthermore, perception of flood risk may increase WTP, while perception of other risks may decrease it. Methods of dealing with environmental risk that were proposed in the survey may have affected WTP levels.     

Household Willingness to Pay and Farmers' Willingness to Accept Compensation for Establishing a Recreational Woodland

The UK Forestry Commission's recently implemented Community Woodland scheme sets out to provide new recreational woodland facilities near to towns and cities where such resources are in short supply. This study examines household willingness to pay (WTP) for such a proposed woodland by means of the contingent valuation (CV) method. A stratified sample of 325 households in Wantage, Oxfordshire, was interviewed and asked to state both their annual and per-visit WTP. Analysis of a number of recognized potential biases suggested that the results obtained must be treated with caution although we argue that the CV provides a useful ballpark indication of preferences. A simultaneous CV survey of farmers' willingness to accept compensation for converting agricultural land into woodland proved to be far more robust, despite a small sample size. We conclude that farmers are more familiar with the concept of assessing potential compensation than are households with estimating hypothetical payments for increased provision of public goods.     

How do Consumers Perceive Electric Vehicles? A Comparison of German Consumer Groups

Abstract

Electric vehicles (EVs) are currently being discussed as a promising means to increase the energy efficiency and sustainability of today's transport systems. While technological progress and cost reduction are certainly crucial topics for their successful diffusion, consumer acceptance is another issue that warrants further analysis. Based on a large online survey (N?=?969), we compared four consumer groups which differ in their likelihood to purchase an EV with regard to their socio-demographic characteristics, their willingness to pay (WTP) and their perceptions of EVs. The findings indicate that early users in Germany are most likely to be middle-aged men living with their families in a multi-vehicle household who have a higher WTP for an EV. Perceived compatibility of an EV with personal needs seems to be the most influential factor on the stated willingness to purchase an EV. With regard to the promotion of EVs, strengthening their environmental advantages and providing financial incentives for purchase are rated as important measures by a majority of the sample, while performance characteristics which are comparable to conventional vehicles seem to be less important for most participants. Based on the data analyses, we provide recommendations for measures regarding the further development and promotion of EVs.     

Public Versus Private: Does It Matter for Water Conservation? Insights from California

This article asks three connected questions: First, does the public view private and public utilities differently, and if so, does this affect attitudes to conservation? Second, do public and private utilities differ in their approaches to conservation? Finally, do differences in the approaches of the utilities, if any, relate to differences in public attitudes? We survey public attitudes in California toward (hypothetical but plausible) voluntary and mandated water conservation, as well as to price increases, during a recent period of shortage. We do this by interviewing households in three pairs of adjacent public and private utilities. We also survey managers of public and private urban water utilities to see if they differ in their approaches to conservation and to their customers. On the user side we do not find pronounced differences, though a minority of customers in all private companies would be more willing to conserve or pay higher prices under a public operator. No respondent in public utility said the reverse. Negative attitudes toward private operators were most pronounced in the pair marked by a controversial recent privatization and a price hike. Nonetheless, we find that California’s history of recurrent droughts and the visible role of the state in water supply and drought management undermine the distinction between public and private. Private utilities themselves work to underplay the distinction by stressing the collective ownership of the water source and the collective value of conservation. Overall, California’s public utilities appear more proactive and target-oriented in asking their customers to conserve than their private counterparts and the state continues to be important in legitimating and guiding conservation behavior, whether the utility is in public hands or private.     

Willingness to pay towards a public good: how does a refund option affect stated values?

Mandatory taxes and/or voluntary contributions are commonly adopted as the payment vehicle when eliciting willingness to pay (WTP) in environmental valuation studies. While mandatory taxes may arouse negative feelings, voluntary contributions may lead to strategic behaviour (over bidding) or free riding (under bidding). In this paper, we explore an alternative payment vehicle which avoids the draconian undertones associated with taxes and may be more incentive compatible than a voluntary contribution – a tax that incorporates a refund option. The template for such a payment vehicle is the value added tax charged to tourists in Ireland, but which can be reclaimed on exiting the country. In the context of raising public funds to support the conservation of rural countryside landscape, a comparison is made between the elicited WTP via a mandatory tax and that elicited via the alternative payment method incorporating a refund option. While we observe similar participation rates between the two payment methods, the refund option reveals a higher stated WTP.     

Air quality assessment by contingent valuation in Ji'nan, China

Along with urbanization and environmental deterioration within China, many residents' desire for improved air quality has increased. To address this topic, this study focuses on the relationship between poor air quality and residents' willingness to pay for improved air quality in the city of Ji'nan. As a means of quantifying an individual's willingness to pay (WTP) for improved air quality, a contingent valuation method (CVM) was employed. A sample of 1500 residents was chosen, based on the stratified sampling method. The respondents' WTP was then elicited through a series of face-to-face interviews, conducted using a range of hypothetical, open-ended scenario questions. The results showed that 59.7% of respondents were able to express a positive WTP, and that the average WTP was 100 Chinese Yuan (CNY) per person, per year. In order to establish the relationship between endogenous variables and WTP, both a Probit model on the probability of a positive WTP, and a stepwise regression model were constructed. Most parameters in the econometric analysis demonstrated the expected results. It was found that annual household income, expenditure on the treatment of respiratory diseases and workers in the family significantly influenced WTP. The rates of positive WTP and the monetary amount were also larger for men than for women. Unlike developed countries, most respondents regard air quality improvement as a government responsibility in that more than 40% of respondents had no incentive to bear the costs of attempting to achieve better air quality, indicating a relatively low environmental consciousness.     

Information and Willingness to Pay in a Contingent Valuation Study: The Value of S. Erasmo in the Lagoon of Venice

This paper reports on a contingent valuation (CV) study eliciting willingness to pay (WTP) for a public program for the preservation of lagoon, beach and infrastructure in the island of S. Erasmo in the Lagoon of Venice, Italy. We use split samples to investigate the effect of providing a summary of reasons for voting in favor and against the program before the referendum valuation question. Reminding respondents of the reasons for voting for or against the program increases WTP among less highly educated respondents, and decreases WTP among more highly educated respondents.     

COORDINATION OF PUBLIC AND PRIVATE AC A CASE STUDY OF LAKE RESTORATION1

ABSTRACT: The potential for joint public and private action for lake restoration is examined using Lake Apopka, Florida, as a case study. Initial calculations indicate that private incentives alone are inadequate to attract investment in a facility to grow and harvest water hyacinths for conversion to methane gas. However, the private externality of water quality improvement associated with harvesting water hyacinths provides a key linkage between the public's water quality objectives and the private gas producer's actions. In order to establish the potential basis for negotiation, the public's willingness-to-pay for environmental services associated with improved water quality is estimated and compared with the estimated subsidy required to induce private action. A conceptual framework is then presented for coordinating actions between private firms and public water management agencies in order to internalize the private externality of water quality improvement while simultaneously achieving the public and private objectives. Results indicate that the subsidization of water hyacinth production and harvesting compares favorably with alternative means of enhancing the water quality of Lake Apopka.     

Incentives for private residential brownfields development in US urban areas

Public agencies in the US have committed resources to encourage private investment in reusing contaminated sites. With public funds in short supply, the effectiveness of their efforts matters both to the agencies and the development community. This paper draws on a mail survey of private developers that uses conjoint choice experiments to investigate the relative attractiveness of incentives to promote residential infill on contaminated property. Results suggest protection from third party liability offers the most value, with protection from cleanup liability and relief from public hearing requirements also important. The findings indicate several opportunities for planners to promote infill on contaminated sites in a socially and environmentally appropriate manner.     

An Assessment of Land Conservation Patterns in Maine Based on Spatial Analysis of Ecological and Socioeconomic Indicators

Given the nature of modern conservation acquisitions, which often result from gifts and opportunistic purchases of full or partial property rights, there is a risk that the resulting mosaic of conserved resources may not represent a coherent set of public values and benefits. With different public and private entities engaged in land conservation, one would further expect that each organization would apply separate goals and criteria to the selection and acquisition of its conservation portfolio. This set of circumstances raises an important question: what is the aggregate outcome of this land conservation process? Retrospective assessments provide a means of reviewing cumulative historical decisions and elucidating lessons for improving future conservation strategies. This study used GIS-based spatial analysis to examine the relationships of private and public conservation lands in Maine to a variety of landscape metrics in order to determine the degree to which these lands represent core ecological and socioeconomic values that are meaningful to a wide cross-section of citizens. Results revealed that the gains of past conservation efforts in Maine are counter-balanced to some extent by apparent gaps in the existing fabric of conservation holdings. Conservation lands capture a representative sample of diverse habitat, provide a large measure of protection for multiple conservation values and indicators, and offer an unusual mix of outdoor recreational opportunities for residents and visitors alike. Yet, the majority of parcels are relatively small and isolated, and thus do not provide contiguous habitat blocks that offset ongoing processes of landscape fragmentation. Furthermore, the majority of area associated with many of the ecological metrics examined in this report is located outside the boundaries of current conservation holdings. The under-represented metrics identified in this investigation can be viewed as potential targets for new strategic conservation initiatives.     

Valuation of National Park System Visitation: The Efficient Use of Count Data Models, Meta-Analysis, and Secondary Visitor Survey Data

The National Park Service (NPS) currently manages a large and diverse system of park units nationwide which received an estimated 279 million recreational visits in 2011. This article uses park visitor data collected by the NPS Visitor Services Project to estimate a consistent set of count data travel cost models of park visitor willingness to pay (WTP). Models were estimated using 58 different park unit survey datasets. WTP estimates for these 58 park surveys were used within a meta-regression analysis model to predict average and total WTP for NPS recreational visitation system-wide. Estimated WTP per NPS visit in 2011 averaged $102 system-wide, and ranged across park units from $67 to $288. Total 2011 visitor WTP for the NPS system is estimated at $28.5 billion with a 95% confidence interval of $19.7–$43.1 billion. The estimation of a meta-regression model using consistently collected data and identical specification of visitor WTP models greatly reduces problems common to meta-regression models, including sample selection bias, primary data heterogeneity, and heteroskedasticity, as well as some aspects of panel effects. The article provides the first estimate of total annual NPS visitor WTP within the literature directly based on NPS visitor survey data.     

Perceptions and attitudes of land managers in multi-tenure reserve networks and the implications for conservation

Multi-tenure reserve networks aim to connect areas managed for biodiversity conservation across public and private land and address the impacts of fragmentation on both biotic and social systems. The operation and function of Australian multi-tenure reserve networks as perceived by their land managers was investigated. Overall, the conservation of natural assets was the most frequently reported primary reason for involvement in a network. The perceived aims of the respective networks largely reflected the response identified for involvement and management. Over 88% of managers considered their involvement in multi-tenure reserve networks to be a positive or very positive experience. A lack of resources and time for management were considered major limitations of these networks. The majority (80%) of private land managers within networks were willing to be included in a national reserve system of conservation lands. As the Australian National Reserve System currently incorporates mostly public land, these findings have important and potentially positive implications for a greater role for protected private land.     

A comparison of alternative contingent valuation elicitation treatments for the evaluation of complex environmental policy

Attempts to evaluate the economic benefits associated with complex environmental policies, using the contingent valuation (CV) method, have been dogged by controversy. In particular, debate has centred on the influence of embedding and related effects on the validity of CV willingness-to-pay (WTP) estimates. This paper discusses these effects in the context of identifying the most appropriate WTP elicitation treatment to evaluate the willingness to pay for the various elements of a multi-dimensional environmental policy. The findings of an empirical experiment demonstrate that a top-down allocation treatment, which uses independent sub-samples for individual policy components, provides the most reliable treatment to value all aspects of a multi-dimensional policy, whilst also overcoming embedding bias problems.     

Integration of Satellite Imagery and Forest Inventory in Mapping Dominant and Associated Species at a Regional Scale

To achieve the overall objective of restoring natural environment and sustainable resource usability, each forest management practice effect needs to be predicted using a simulation model. Previous simulation efforts were typically confined to public land. Comprehensive forest management practices entail incorporating interactions between public and private land. To make inclusion of private land into management planning feasible at the regional scale, this study uses a new method of combining Forest Inventory and Analysis (FIA) data with remotely sensed forest group data to retrieve detailed species composition and age information for the Missouri Ozark Highlands. Remote sensed forest group and land form data inferred from topography were integrated to produce distinct combinations (ecotypes). Forest types and size classes were assigned to ecotypes based on their proportions in the FIA data. Then tree species and tree age determined from FIA subplots stratified by forest type and size class were assigned to pixels for the entire study area. The resulting species composition map can improve simulation model performance in that it has spatially explicit and continuous information of dominant and associated species, and tree ages that are unavailable from either satellite imagery or forest inventory data. In addition, the resulting species map revealed that public land and private land in Ozark Highlands differ in species composition and stand size. Shortleaf pine is a co-dominant species in public land, whereas it becomes a minor species in private land. Public forest is older than private forest. Both public and private forests have deviated from historical forest condition in terms of species composition. Based on possible reasons causing the deviation discussed in this study, corresponding management avenues that can assist in restoring natural environment were recommended.