Context-dependent evaluation of climate change policies: competing policies,knowledge and emotions

Climate change policies can compete with policies on other social and environmental problems for limited economic resources. This paper investigates the potential influence of alternative policies on citizens’ preferences for climate change policies. A contingent valuation study was implemented to estimate the impact of observable and unobservable contextual effects of competing polices on climate change valuation. Individuals are also investigated about their endowment of knowledge and emotional reactions to such problems. The results show that citizens’ valuation of climate change policies crucially depends on the context-dependent competing policies. The valuation rises as the number of competing policies increases. This increment becomes economically significant when the competing policies are related to specific problems such as forest fires and development. In addition, the valuation also rises with the amount of knowledge endowed by the individual about the climate change problem, and with the experience of negative emotions such as fear and sadness.     

Scientific evidence,expert entrepreneurship,and ecosystem narratives in the UK Natural Environment White Paper

The Natural Environment White Paper represents the most important conservation policy shift in the United Kingdom (UK) in twenty years. It formalises the ecosystem approach within national policy objectives and emphasises the economic value of ecosystem services. By analysing the use of various evidence sources, the involvement of science entrepreneurs, and the development of policy narratives, our goal was to understand factors that influenced adoption of an ecosystem service framework in the UK. We interviewed 48 policy actors and found that centrally-sponsored synthesis reports with entrepreneurial authors provided the most influential expert-based knowledge in the development of the White Paper. More recently published reports had greater influence, yet the window of opportunity for scientific evidence having policy impact was greater in the problem-setting stages of policy development. The interaction between teams preparing syntheses and expert entrepreneurs helped influence the construction of strategic policy narratives. Those narratives increased the impact of scientific evidence by communicating and framing key policy-salient messages, and brokering between broad ecosystem-based and environmental economics narratives. The combination of ecological and economics evidence was particularly salient in the UK case due to the context of continued biodiversity loss and the acceptability of valuation narratives within central government. Our findings suggest that evidence impact varies at different stages of the policy process, and that this is driven by the interplay of contextual factors like policy timing, personal influence, and the competition between different sets of actors and narratives.     

Non-market valuation of off-highway vehicle recreation in Larimer County, Colorado: Implications of trail closures

Few economic studies are available to measure off-highway vehicle recreation benefits foregone when trails must be closed to protect the environment. This paper estimates the non-market benefits associated with off-highway vehicle (OHV) recreation on National Forest lands in Larimer County, Colorado. We use a contingent valuation model (CVM) to estimate benefits to OHV users, which includes dirt bike riders, all terrain vehicle (ATV) riders, and 4-wheel drive (4 × 4) users. Using CVM we find the mean consumer surplus estimates to be $78 per person per day. These results are consistent with the few previous estimates of OHV recreation benefits. This equates to a per trail per summer consumer surplus of at least between $219,467 and $296,876, and a county level surplus per summer to be at least between $796,447 and $1,077,367. These benefits can be compared to environmental costs to obtain a more complete picture of the effects of trail closure, as well as the negative spillovers to non-motorized users.     

澳门固体废物管理的经济价值评估——选择试验模型法和条件价值法的比较

以澳门固体废物管理为研究对象,比较研究了选择试验模型法和双边界二分式条件价值法在澳门环境物品经济价值评估中的应用.结果表明,应用选择试验模型法和双边界二分式条件价值法得出的澳门固体废物管理经济价值结果相差不大,但选择试验模型法比双边界二分式条件价值法能更充分地揭示出消费者的偏好信息.     

FLOODPLAINS AND HOUSING VALUES: IMPLICATIONS FOR FLOOD MITIGATION PROJECTS1

ABSTRACT: The hedonic valuation method was used to quantify the impact of floodplain location on housing values in Fargo‐Moor‐head. Being located in the 100‐year floodplain lowered the home values by $8,990, and such homes were worth $10,241 less than similar homes located outside the floodplain before the major flood event of 1997. Required flood insurance premiums for these homes were determined to account for approximately 81 percent of this price depreciation. In contrast, homes in the 500‐year floodplain were worth $3,100 more than similar homes not in the floodplain. It was concluded that more disclosure is needed regarding the location of the 500‐year floodplain, and that the hedonic valuation method can be used to calculate the economic gains and losses associated with flood mitigation projects or floodplain remapping efforts that result in the reclassification of the legal floodplain status of individual homes.     

Valuing biodiversity: reality or mirage?

The objective of this paper was to consider the social value ofbiological diversity and explore if this value could be expressedin terms of a unidimensional metric in money. Economics distinguishes between use-values and non-use-values, which are critically evaluated for valuing biodiversity. It is shown that these utility-based valuations have severe limitations as they treat species in isolation from their ecological contexts. In contrast, ecosystem ecology regards ecosystems as an integratednon-linear and nonconvex system in which ecosystem functions canbe understood as a four-component cycle; exploitation, accumulation of biomass, creative destruction and renewal. Withinsuch a cycle, ecosystems can be seen to have two properties: stability and resilience. A good proxy for resilience is the probability of extinction of species, and social value of biodiversity can be expressed as a partial ordering with thisprobability as an index. This approach is consistent with decision theory, of which social choice is an important component, pioneered by Arrow.     

Using a functional approach to wetland valuation: the case of Zazari–Cheimaditida

This study proposes the valuation of wetland functions as an alternative to the conventional approach to wetland valuation, in order to derive indicators for decision-making in wetland management. It is illustrated that these functions can be valuated in terms of the goods and services they provide to society. Using a functional approach, the functions are identified and the goods and services they provide are explicitly allocated among them; then, the latter are valuated with the Contingent Valuation method. Statistical analysis of the data provides welfare measures that reflect the value of these functions. It is argued that the values of separate functions are more useful in policy-making than their aggregated value.

How Run-of-River Operation Affects Hydropower Generation and Value

Regulated rivers in the United States are required to support human water uses while preserving aquatic ecosystems. However, the effectiveness of hydropower license requirements nationwide has not been demonstrated. One requirement that has become more common is “run-of-river” (ROR) operation, which restores a natural flow regime. It is widely believed that ROR requirements (1) are mandated to protect aquatic biota, (2) decrease hydropower generation per unit flow, and (3) decrease energy revenue. We tested these three assumptions by reviewing hydropower projects with license-mandated changes from peaking to ROR operation. We found that ROR operation was often prescribed in states with strong water-quality certification requirements and migratory fish species. Although benefits to aquatic resources were frequently cited, changes were often motivated by other considerations. After controlling for climate, the overall change in annual generation efficiency across projects because of the change in operation was not significant. However, significant decreases were detected at one quarter of individual hydropower projects. As expected, we observed a decrease in flow during peak demand at 7 of 10 projects. At the remaining projects, diurnal fluctuations actually increased because of operation of upstream storage projects. The economic implications of these results, including both producer costs and ecologic benefits, are discussed. We conclude that regional-scale studies of hydropower regulation, such as this one, are long overdue. Public dissemination of flow data, license provisions, and monitoring data by way of on-line access would facilitate regional policy analysis while increasing regulatory transparency and providing feedback to decision makers.     

Elements of a cost-benefit analysis for improving salmonid spawning habitat in the River Wye

Contingent valuation methods were used to derive an economic value for salmonid spawning habitat restoration. Anglers' willingness to pay for such restoration and farmers' willingness to accept compensation for lost productivity due to the restoration were investigated using questionnaire and face-to-face surveys, respectively. These elements were combined with the Wye Habitat Improvement Project (WHIP) budget into a cost-benefit analysis (CBA) based upon direct use values only. The CBA assumed that the WHIP will improve salmonid stock. Different levels of investment were considered and the CBA gave a positive net present value indicating an economically viable project and benefit-to-cost ratios greater than one for minor projects. However, the number of anglers using the Wye would need to double or triple in order to justify the full WHIP budget. Management of an environmental resource must consider users' and stakeholders' needs and opinions. It was found that anglers on the Wye value habitat/scenery in its own right and that this played an important part in the activity. Farmers' agreement regarding involvement in such projects was more likely to be determined by their political and ethical views than receiving an economic compensation.     

Value for Money: Protecting Endangered Species on Danish Heathland

Biodiversity policies in the European Union (EU) are mainly implemented through the Birds and Habitats Directives as well as the establishment of Natura 2000, a network of protected areas throughout the EU. Considerable resources must be allocated for fulfilling the Directives and the question of optimal allocation is as important as it is difficult. In general, economic evaluations of conservation targets at most consider the costs and seldom the welfare economic benefits. In the present study, we use welfare economic benefit estimates concerning the willingness-to-pay for preserving endangered species and for the aggregate area of heathland preserved in Denmark. Similarly, we obtain estimates of the welfare economic cost of habitat restoration and maintenance. Combining these welfare economic measures with expected species coverage, we are able to estimate the potential welfare economic contribution of a conservation network. We compare three simple nonprobabilistic strategies likely to be used in day-to-day policy implementation: i) a maximum selected area strategy, ii) a hotspot selection strategy, and iii) a minimizing cost strategy, and two more advanced and informed probabilistic strategies: i) a maximum expected coverage strategy and ii) a strategy for maximum expected welfare economic gain. We show that the welfare economic performance of the strategies differ considerably. The comparison between the expected coverage and expected welfare shows that for the case considered, one may identify an optimal protection level above which additional coverage only comes at increasing welfare economic loss.