Valuation of expectations: A hedonic study of shale gas development and New York’s moratorium

This paper examines the local impacts of shale gas development (SGD). We use a hedonic framework and exploit a discrete change in expectations about SGD caused by the New York State moratorium on hydraulic fracturing. Our research design combines difference-in-differences and border discontinuity, as well as underlying shale geology, on properties in Pennsylvania and New York. Results suggest that New York properties that were most likely to experience both the financial benefits and environmental consequences of SGD dropped in value 23% as a result of the moratorium, which under certain assumptions indicates a large and positive net valuation of SGD.     

Integration of different environmental valuation methods to estimate forest degradation in arid and semi-arid regions

Many factors are aggravating desertification and degradation of forests such as urbanization, droughts, exploitation of natural resources and climate change. The study aims at estimating and assessing the degradation of forests in arid and semi-arid regions. This task however is complicated since the impact of the degradation will be in different forms such as loss of wood, soil erosion and lost recreational areas. Nevertheless the dynamic impact of the degradation is increasing the complexity of analysis since forest once lost is a reduction of value for all subsequent years. This study is considering the value of damages over time and it is using the concept of three environmental valuation methods to estimate the whole impact of the degradation: the habitat equivalency analysis (HEA), the productivity method and the benefit transfer method. The methods were applied to specific values of forests, depending on the best applicability, and the results combined to an overall value loss. The costs are calculated based on the year 2014 with two time horizons: 30 and 100 years. To apply the valuation approach, Jordan as an arid and semi-arid country is chosen. The result shows that the annual costs of environmental degradation of Jordanian forest areas equal about 0.14% of GDP in 2013, proving the enormous value lost to forest degradation or deforestation. The valuation approach can be transferred to other arid or semi-arid areas and stimulate forest conservation activities to prevent further degradation and to save the forest ecosystem services for the future.     

Social networks and non-market valuations

This paper considers the role of social networks in the non-market valuation of public goods. In the model individuals derive utility both from their own direct enjoyment of the public good and from the enjoyment of those in their network. We find that network structure almost always matters, both for utility and for valuation. The network increases aggregate valuation when it assigns higher importance, that is, stronger connections, to individuals with higher private values for the public good. The model provides a theoretical foundation for the idea of opinion leaders who have disproportionate influence over their communities. Specifically, opinion leaders are individuals assigned high importance by the network, and projects favored by opinion leaders tend to be favored by the network as a whole. The model can also guide future empirical studies by enabling a more structural approach to non-market valuation in a socially connected group.     

上海城市河流生态系统服务的支付意愿

条件价值评估法(CVM)是推导环境资源生态系统服务的支付意愿的标准方法之一.以全国城市河流整治的样板工程--上海浦东张家浜为例,采用支付卡式CVM研究方法,对该城市河流生态系统服务的支付意愿进行了分析.共发放支付卡式CVM问卷800份,回收有效问卷646份.获得张家浜生态系统服务的平均支付意愿为195.07～253.04元/(a·户),将研究结果与国内外部分研究进行了比较.讨论了支付意愿的分布形态和范围,对支付意愿与受访者个人社会经济变量(收入、学历、捐款经历和环境态度等)的回归关系进行了较为详细的分析,并对回归结论进行了环境经济学解释.对支付卡式CVM研究中导致支付意愿产生偏差的部分原因作了一定讨论.最后提出了用CVM推导支付意愿的研究方法面对的批评和争议以及CVM研究结论可靠性的环境决策依据.     

Assessment of the conservation value of Munseom area in Jeju Island,South Korea

The ecosystem of munseom area (MA) in Jeju Island, one of the marine protected areas in South Korea, has been continuously threatened by lack of management and pollution of the surrounding sea area. As a result, the South Korean government is trying to implement the systematic management plan to conserve the marine ecosystem of the MA. This article tries to obtain information about the conservation value of the MA. To this end, this study examines household willingness to pay (WTP) for conserving the MA employing the contingent valuation (CV) approach. A total of 1000 South Korean households were involved in the CV survey using a dichotomous choice question. The mean yearly WTP for the conservation is estimated as KRW 1763 (USD 1.50) per household. The national value expanded from the sample to the population is worth KRW 34.0billion (USD 29.0 million) per year. The results imply that the conservation is supported by South Korean households.     

The impact of flooding on property prices: A repeat-sales approach

In this paper we use a repeat-sales model to analyse the price path of properties affected by flooding in England between 1995 and 2014. Our dataset contains information on 4.8 million houses with at least one repeat-sale. This database is merged with high-definition GIS data delineating the spatial extent of all recorded flood incidents in England covering a total area of 2,654 km². Our results show that immediately after a flood event the price of property in a postcode entirely inundated by inland flooding is on average 24.9% lower than non-flooded property, whereas for property in a postcode entirely inundated by coastal flooding the price reduction is 21.1%. Nonetheless, we find that this discount is short-lived and the discount is no longer statistically significant for properties affected by inland flooding after 5 years, which falls to just 4 years for properties affected by coastal flooding. For lower-priced properties however, the post-flood price discount can be observed up to 6–7 years for both inland and coastal flooding. The magnitude of the impact also depends on the characteristics of the properties, the characteristics of the flood and the existence of flood protection assets.     

Potential of the Conservation Reserve Program to control agricultural surface water pollution

The Conservation Reserve Program (CRP), initiated by the Conservation Title of the Food Security Act of 1985, is the primary federal program to control nonpointsource pollution in agricultural watersheds of the United States. However, the program is designed primarily to reduce soil erosion rather than to retire croplands in a manner optimal for controlling runoff of sediment and associated pollutants. This study estimates potential enrollment of streamside and floodplain croplands in this ten-year retirement program in order to gauge the potential of the CRP as a water-quality improvement policy. A contingent choice survey design was employed in Fayette County, Illinois, to demonstrate that there is substantial potential for retirement of streamside and floodplain croplands in the CRP. Enrollments in each program climb from less than 6% to over 83% of eligible croplands as the annual rental rate is increased from $20 to $200/acre. Potential retirement of streamside and floodplain croplands declines, however, if tree planting, drainage removal, or a 20-year contract are required. The potential of a CRP-based water-quality program to improve water quality and aquatic ecosystems in agricultural watersheds is thus substantial but constrained by the economic trade-offs that farmers make between crop production and conservation incentives in determining the use of their riparian lands.     

ASSESSING THE DIRECT EFFECTS OF STREAMFLOW ON RECREATION: A LITERATURE REVIEW1

ABSTRACT: A variety of methods have been used to learn about the relation between streamfiow and recreation quality. Regardless of method, nearly all studies found a similar nonlinear relation of recreation to flow, with quality increasing with flow to a point, and then decreasing for further increases in flow. Points of minimum, optimum, and maximum flow differ across rivers and activities. Knowledge of the effects of streamflow on recreation, for the variety of relevant activities and skill levels, is an important ingredient in the determination of wise streamflow policies.     

THE EFFECT OF FLOOD PLAIN LOCATION ON PROPERTY VALUES: THREE TOWNS IN NORTHEASTERN NEW JERSEY1

ABSTRACT: The persistence of development and settlement in flood plains and continued damages from flooding, raises the question of how property owners respond to flood plain location and whether property values reflect this response. Existing studies disagree on the significance of flood hazard for property values. This study evaluates the effect of flood plain location on assessed valuation and home value in three towns in New Jersey. A t-test on mean assessed value and value of owner-occupied units at block levels showed no statistically significant variation for flood prone and nonflood prone lands. Possible explanations are that homeowners do not know or perceive the risk of living in flood plains, assessors do not incorporate flooding into assessment criteria, and the National Flood Insurance Program subsidies and broadened financial markets may equalize property values.     

Public support for ecosystem restoration in the Hudson River Valley,USA

We applied the Theory of Planned Behavior to help understand the relationships between environmental beliefs, support for ecosystem restoration actions, and willingness to pay (WTP) for restoration and protection goals in the Hudson River estuary, New York State, USA. We conducted a mail survey with 3,000 randomly-chosen local residents of the Hudson River estuary in the fall of 1999. As hypothesized, the broad ecosystem restoration goals of the Hudson River Estuary Action Plan were more strongly supported than the corresponding specific implementation actions. We found that beliefs and past behavior were better explanatory variables than sociodemographic characteristics for explaining people's support for ecosystem restoration actions and WTP for restoration and protection goals. Because ecosystem restoration goals appear to be more generally acceptable than specific restoration actions, proponents of restoration programs should not become complacent about the need for active public outreach and involvement even if initial restoration program discussions have been low in controversy. Efforts to assess and foster support for ecosystem restoration should be targeted toward audiences identified on the basis of beliefs and past behaviors rather than on sociodemographic characteristics.