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.     

Stated willingness to pay as hypothetical behaviour: Can attitudes tell us more?

The fact that people only state a hypothetical willingness to pay (WTP) in contingent valuation surveys still causes much debate. Doubters are sceptical about the reliability and validity of contingent valuation estimates, that is, whether people will actually pay the amount stated in the survey. Parallel to this discussion, social psychologists have conducted a great deal of research on the determinants of actual behaviour, particularly attitudes. Therefore, the objective of this paper is to analyse the relationship between different kinds of attitudes and behaviour. Based on this analysis, a composite attitude-behaviour model is developed and estimated using data from a contingent valuation about the river Elbe in Germany. The results show that attitudes towards the behaviour are the immediate antecedent of the behavioural intention. Accordingly, it is suggested that these attitudes along with attitudes towards the good in question and general attitudes should be measured in order to increase predictive validity.     

The potential role of stated preference methods in the Water Framework Directive to assess disproportionate costs

This paper examines the issue of disproportionate costs of Water Framework Directive (WFD) implementation using public surveys as a means to inform policy and decision making. Public taxpayers are asked their opinion regarding the implementation of the WFD and its costs. Taxpayers are expected to bear a large share of the cost of WFD implementation, be it through national taxation, local water pollution charges or higher market prices for water related goods and services. The paper's main objective is to illustrate the role of stated preference research to elicit public opinions and perceptions towards socially acceptable levels of water quality and public willingness to pay (WTP) for the expected environmental benefits of the WFD. Stated preference research can be used as a way to assess the concept of disproportionate costs to those who are expected to bear a large share of the costs of WFD implementation, and at the same time address the issue of public participation in the WFD. The survey results are used as a public consultation tool to inform policy and decision makers about public willingness and ability to pay for the implementation of the WFD. This measure can be used as one of the benchmarks to define disproportionate costs in a cost-benefit context.     

ESTIMATING THE BENEFITS OF PHOSPHORUS POLLUTION REDUCTIONS: AN APPLICATION IN THE MINNESOTA RIVER1

ABSTRACT: In order to make economically efficient decisions about water quality improvements, data on both the costs and benefits of these improvements is needed. However, there has been little research on the benefits of reducing phosphorus pollution which implies that policy decisions are not able to make the comparison of costs and benefits that is essential for economic efficiency. This research attempts to ameliorate this situation by providing an estimate of the benefits of a 40 percent reduction in phosphorus pollution in the Minnesota River. A 1997 mail survey gathered information on Minnesota residents'use of a recreational site on the Minnesota River, the Minnesota Valley National Wildlife Refuge, and their willingness to pay for phosphorus reductions in the Minnesota River. The random effects probit model used in this research to investigate household willingness to pay for phosphorus pollution reductions in the Minnesota River incorporates recent innovations in nonmarket valuation methodology by using both revealed and stated preference data. This model estimated annual household willingness to pay for phosphorus reductions in the Minnesota River at $140. These results may be used in combination with cost estimates to determine the economic efficiency of phosphorus clean up.     

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.     

A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.     

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.     

Changes in attitudes about importance of and willingness to pay for salmon recovery in Oregon

Salmon are perhaps the quintessential icon of the Pacific Northwest, affecting the region's culture, politics, and economy. The importance Oregonians place on salmon recovery and their willingness to pay for salmon recovery efforts was assessed biennially between 1996 and 2002 through the Oregon Population Survey. Based on these data, we found that Oregonians appear to have become less supportive toward salmon recovery and salmon recovery efforts over that time period; they were less likely to say salmon recovery is important and chose lower willingness to pay responses in 2002 than in 1996.Attitudes do appear to be related to the economic conditions and demographic composition of residents of the state. In particular, we found that local unemployment rates, age of respondent, and rural county residence are significantly negatively correlated with the respondent's expressed support for salmon recovery efforts. Attributes positively correlated with expressions of support for salmon include male gender, graduate-level education, and American Indian identity. We found that a significant portion of the decline in support is unexplained by the variables included in the analysis.     

USING CONTINGENT VALUATION AND BENEFIT TRANSFER TO EVALUATE WATER SUPPLY IMPROVEMENT BENEFITS1

ABSTRACT: Many water systems in small cities and rural areas throughout the United States are facing water quality and supply problems. These problems are typically not the result of an unexpected event, but are the result of growth trends or decreasing water quality experienced over several years. This analysis uses the contingent valuation and benefit transfer methods to evaluate the willingness to pay for a rural water system in northcentral Montana. Both of the procedures resulted in similar values, ranging from about $4.05 to $7.50 per household per month for urban residents and $5.40 to $11.50 per household per month for rural residents, which is equal to 11 percent to 23 percent of current average water costs. The willingness to pay estimates do not include non-household water users. This analysis shows that useful planning information can be obtained from relatively inexpensive contingent valuation mail survey data and the benefit transfer method as long as the limitations of the data are understood. The willingness to pay for ensuring good quality rural water supplies in the future is likely to be low compared to the costs of extensive diversion and treatment systems. Willingness to pay estimates provide decision makers with information that can be used to avoid building a large water supply system that water users do not want to connect to because of high costs.     

Household Valuation of Curbside Recycling

This paper looks at the willingness to pay for, and participate in, a curbside recycling programme based on a survey of 401 residents in Ogden, Utah. Modifying the Cameron & James (1987) econometric model to fit ordered-interval data, we estimate that the mean willingness to pay for curbside recycling is US $2.05 per month, and that 72% of the residents would willingly participate in such a programme. Furthermore, females, young people, college-educated, those currently recycling without monetary reward, those regarding recycling as beneficial to the community and nation, and those with relatively high incomes are willing to pay the most for curbside recycling.     

California households' willingness to pay for ‘green’ electronics

Concerns about rapid increases in the volume of electronic waste (e-waste) and its potential toxicity have sharpened policy makers' interest for extended producer responsibility to encourage manufacturers of consumer electronic devices (CEDs) to ‘design for the environment’. This paper examines consumer willingness to pay for ‘green’ electronics based on a 2004 mail survey of California households. Using ordered logit models, it was found that significant predictors of willingness to pay for ‘greener’ computers and cell phones include age, income, education, beliefs about the role of government for improving environmental quality, as well as environmental attitudes and behaviors, but neither gender nor political affiliation. Although most respondents are willing to pay only a 1% premium for ‘greener’ CEDs, innovation and EU directives may soon make them competitive with conventional CEDs.     

Changing abundance of elephants and willingness to pay for their conservation

This paper explores the way in which the stated willingness to pay for the conservation of Asian elephants in Sri Lanka varies with hypothetical variations in their abundance. To do that, it relies on results from a sample of residents of Colombo. The willingness to pay function is found to be unusual. It increases at an increasing rate for hypothetical reductions in the elephant population compared to its current level (a level that makes the Asian elephant endangered) and also increases at a decreasing rate for increases in this population from its current level. Rational explanations are given for this relationship. The relationship is, however, at odds with relationships suggested in some of the literature for total economic value as a function of the abundance of a wildlife species. It is suggested that willingness to pay for conservation of a species rationally includes a strategic element and may not always measure the total economic value of a species. Nevertheless, willingness to pay is still policy relevant in such cases.     

Valuing damage to historic buildings using a contingent market: a case study of road traffic externalities

Pricing of road transport at social marginal cost should make users aware of the cost of damaging the environment (external costs). Such an approach, however, requires a monetary estimate of this damage which can be difficult to derive. On the basis of a study carried out at Neuchâtel (Switzerland), the contingent valuation method was used to estimate the damage caused to buildings of historical and cultural value by traffic‐caused air pollution. In a survey, individuals were asked to contribute to a fund set up to finance the maintenance of pre‐selected historic buildings. A valuation function to predict willingness‐to‐pay responses is estimated.     

Valuation of open space and conservation features in residential subdivisions

Conservation subdivision design has been promoted as a way to protect ecologically sensitive areas while maintaining housing densities comparable to standard subdivisions, but many developers and planners question the appeal of conservation design to consumers. This study was conducted to compare economic aspects of conservation subdivision design to standard subdivision design in the midwestern United States. Three methods were used to determine the value homebuyers have for embedded conservation features in residential areas: transactional analyses (to indicate the value homebuyers have expressed for such features in the past); hedonic analyses (to determine the proportion of present value of homes attributable to such features); and contingent valuation (to examine willingness to pay according to homebuyers' preferred features, an indicator of potential future investment). Transactional analyses were based on assessment and transaction data for homes in three conservation-oriented subdivisions and three standard subdivisions in Cedar Rapids, Iowa, United States. Hedonic price models were also derived from assessment and transaction data. Contingent valuation analyses were based on a survey of residents in the same six subdivisions. Transactional data indicated higher 5-year appreciation rates for conservation versus standard subdivision design. Hedonic price models revealed that well-integrated conservation features (e.g. protected stream corridors) within subdivisions have a positive effect on home prices. Sixty-six percent of all respondents indicated willingness to pay for more embedded open space. Maximum willingness to pay was related to several factors including income, gender, desired level of open space, and concern about urban development. Overall, these results indicate that consumer demand and willingness to pay for conservation subdivision design are positive and should not be considered a barrier to implementation.     

Estimating the Benefits of Agri-environmental Policy: Econometric Issues in Open-ended Contingent Valuation Studies

This paper reports on an open-ended Contingent Valuation Method study of the conservation benefits of Environmentally Sensitive Areas (ESAs) in Scotland. The ESA scheme is a central component of agri-environmental policy in the UK, and an interesting policy question concerns the extent of non-market benefits generated by such ESAs. The econometric issues we raise in this paper revolve around bid curves. Bid curves are estimated in open-ended Contingent Valuation Method (CVM) studies for three reasons. These are: (1) as a test of theoretical validity; (2) as a test of discriminant validity; and (3) as a means of benefits transfer. Within the first and last of these aims, the partial relationship between willingness to pay (WTP) and independent variables such as income is of interest. There are several econometric issues involved in estimating such relationships, First, the selection process implicit in obtaining positive WTP bids should be explicitly modelled. Second, many CVM surveys suffer from item non-response with respect to 'sensitive' questions such as the respondent's income; these non-responses may be non-random in nature. Finally, it is possible to dis-aggregate the effect of marginal changes in, say, income on WTP into two elements, namely: an effect on the probability that the individual will be willing to pay something; and secondly, an effect on how much they are willing to pay.     

Social influences on expressed willingness to pay: results of a deliberative monetary valuation study in Colombia

Deliberative monetary valuation (DMV) methods can support environmental decision making by enabling the exchange of arguments and information to produce more democratic outcomes. The product of a valuation may be an array of expressions of willingness to pay (WTP) by individuals or a collectively agreed monetary value. Concerns have been raised, however, as to whether this product is an outcome of thoughtful and independent decision-making or influenced by social pressures to conform. Our study examines this issue and addresses concerns about the use of DMV, based on a public deliberation of forest conservation in Colombia. We analyzed the impacts of social conformity on WTP under two different decision scenarios: individual and collective. The results suggest that the impacts of social conformity are greater when a collective decision is required. These findings indicate that tensions between the differing goals of DMV could undermine its democratic promise.     

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.     

Preferences and willingness to pay for close to home nature for outdoor recreation in Sweden

In Sweden there is a strong tradition of using nature areas for outdoor recreation. This paper reports on a study which explored preferences and willingness to pay for outdoor recreation close to home (≤100 km away from home and ≤24 hours stay at a recreation site) using the contingent valuation method. The data originated from a mail survey that involved Swedish residents who were randomly selected from a national register. An ordinary least squares regression model was used to account for factors influencing willingness to pay. The results showed that approximately 50% of the respondents used nature areas close to their home for recreation and their average frequency of visits to these areas was 74 times annually. Areas dominated by forests were the most preferred, followed by water. The respondents were willing to pay approximately 7200 SEK (US$1080) annually. Their willingness to pay was influenced by factors such as type of nature area, distance to and time spent at the recreation site and income. The results provide one input to the land use planning process by considering the demand for nature-based outdoor recreation close to home.     

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.