Willingness to Pay for Quality Improvements: Should Revealed and Stated Preference Data Be Combined?

In this article we propose theoretically consistent welfare measurement of use and nonuse values for an improvement in environmental quality with revealed and stated preference data. An analytical model based on the comparative static analysis of the variation function that describes the relationship between recreation demand and dichotomous choice contingent valuation models is estimated. Our results show that revealed and stated data should not be combined under the same assumed preference structure unless the two decisions imply the same change in behavior induced by the quality change. In addition, our results indicate scope effects in willingness to pay measures estimated with stated preference data.     

Cross-Cultural Management of Pest Animal Damage: A Case Study of Feral Buffalo Control in Australia’s Kakadu National Park

Government agencies responsible for pest animal management often assume that their views and assumptions about the benefits of control are widely shared, especially if these pests are exotics. This was certainly the case when tens of thousands of feral Asian water buffalo (Bubalus bubalis) were to be culled in Australias Kakadu National Park as part of a national Brucellosis and Tuberculosis Eradication Campaign (BTEC). Implementation of the campaign sparked considerable dispute between officials and aboriginal and non-aboriginal interests about the risks posed by buffalo relative to their value as a potential resource. Drawing upon a variety of written and oral sources relating to the era of buffalo control in Kakadu, this paper critically analyzes the way in which detriment caused by buffalo was appraised and managed under the BTEC program. In particular, the paper focuses the ways in which the BTEC program affected aboriginal people in Kakadu, who view buffalo as a source of customary and economic benefit as well as a source of change on their lands. The paper then considers what lessons can be learned from the BTEC for the development of sensible feral management objectives and strategies. It is argued that effective management of feral animals such as buffalo will require environmental managers to engage with local people and involve them in the definition and management of pest animal damage and methods of control.     

Measuring the economic effects of sea level rise on shore fishing

In this paper we develop estimates of the economic effects of sea level rise on marine recreational shore fishing in North Carolina, USA. The relationship between angler behavior and spatial differences in beach width is estimated using the Marine Recreational Fishing Statistics Survey and geospatial data. We exploit the empirical relationship between beach width and fishing site choice by simulating the effects of sea level rise on angler site choice. We find that reductions in beach width negatively affect the quality and number of fishing trips even as anglers adapt by using piers and bridges. Welfare losses are potentially substantial, ranging up 39% of the total value of marine shore fishing in North Carolina.