Marginal WTP and Distance Decay: The Role of 'Protest' and 'True Zero' Responses in the Economic Valuation of Recreational Water Quality
In: Environmental and resource economics, Band 59, Heft 3, S. 389-405
ISSN: 1573-1502
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In: Environmental and resource economics, Band 59, Heft 3, S. 389-405
ISSN: 1573-1502
In: Environment and development economics, Band 15, Heft 3, S. 321-340
ISSN: 1469-4395
ABSTRACTWe use a choice experiment to evaluate a hypothetical irrigation water pricing regime in Karnataka State, India. The proposed regime includes increasing the availability of water in the dry season, increasing irrigation frequency, water sharing with downstream water users, set against the introduction of a semi-volumetric irrigation price. The majority of farmers chose the status quo (SQ) option. Given the large heterogeneity in farmers' SQ water availability, irrigation practices and current water tax payments, the SQ could not be given a unique baseline interpretation. This poses a potential problem for choice model estimation. By coding the individual SQ situation of farmers, we observed considerable increase in the explanatory power of the choice experiment models. The results may be of general interest for choice experiments of environmental goods and services with heterogeneous spatial distribution, heterogeneous respondents and/or contentious policies that are expected to elicit considerable SQ response.
In: Environment and development economics, Band 8, Heft 2, S. 351-371
ISSN: 1469-4395
Two very similar contingent valuation surveys eliciting willingness-to-pay (WTP) to avoid eye irritation, gastroenteritis, and coughing episodes due to seawater pollution were conducted on visitors to beaches in Portugal and Costa Rica. Various forms of the hypothesis regarding the transfer of mean WTP between the two countries were rejected, as was the hypothesis that model parameters were drawn from the same pooled sample across countries for three different illness episodes. When compared to on-site studies in Costa Rica, benefit transfer from Portugal leads to errors typically of the order of 100 per cent. Adjusting WTP for declared income or other easily accessible socio-demographic variables does not reduce transfer error. This study shows that transfer of health benefit estimates can be potentially quite unhealthy for policy analysis, questioning whether the time and resource savings are justified in this particular transfer context.
In: Society and natural resources, Band 26, Heft 10, S. 1185-1201
ISSN: 1521-0723
We estimate the effects on deforestation that have resulted from policy interactions between parks and payments and between park buffers and payments in Costa Rica between 2000 and 2005. We show that the characteristics of the areas where protected and unprotected lands are located differ significantly. Additionally, we find that land characteristics of each of the policies and of the places where they interact also differ significantly. To adequately estimate the effects of the policies and their interactions, we use matching methods. Matching is implemented not only to define adequate control groups, as in previous research, but also to define those groups of locations under the influence of policies that are comparable to each other. We find that it is more effective to locate parks and payments away from each other, rather than in the same location or near each other. The high levels of enforcement inside both parks and lands with payments, and the presence of conservation spillovers that reduce deforestation near parks, significantly reduce the potential impact of combining these two policies.
BASE
We estimate the effects on deforestation that have resulted from policy interactions between parks and payments and between park buffers and payments in Costa Rica between 2000 and 2005. We show that the characteristics of the areas where protected and unprotected lands are located differ significantly. Additionally, we find that land characteristics of each of the policies and of the places where they interact also differ significantly. To adequately estimate the effects of the policies and their interactions, we use matching methods. Matching is implemented not only to define adequate control groups, as in previous research, but also to define those groups of locations under the influence of policies that are comparable to each other. We find that it is more effective to locate parks and payments away from each other, rather than in the same location or near each other. The high levels of enforcement inside both parks and lands with payments, and the presence of conservation spillovers that reduce deforestation near parks, significantly reduce the potential impact of combining these two policies.
BASE
In: Society and natural resources, Band 26, Heft 10, S. 1137-1154
ISSN: 1521-0723
In: Environmental science & policy, Band 108, S. 133-143
ISSN: 1462-9011
In: Ecology and society: E&S ; a journal of integrative science for resilience and sustainability, Band 27, Heft 3
ISSN: 1708-3087
Freshwater eutrophication is one of the major environmental challenges around the world. There is a range of known factors that are responsible, though the increased flux of nutrients from the sources to the water bodies is a key factor. The aim of this study is to operationalize "integrated valuation" as a way of bridging the gap between cost-effectiveness analysis and economic valuation of benefits in implementation of the Water Framework Directive. The authors begin with a definition of integrated valuation model of ecosystem services as a type of systems analysis, before they move on to describe their site of study and the boundaries of their model. Through applied demonstration, the authors evaluate whether the model meets criteria as an integrated valuation tool and discuss further applicability.
The term "integrated valuation" is defined and its relevance is discussed in terms of bridging the gap between cost-effectiveness analysis and economic valuation in the implementation of the European Union Water Framework Directive. We demonstrate how to integrate benefit valuation with the ecosystem services cascade framework using an Object-Oriented Bayesian Network (OOBN). The OOBN is then used to assess the benefits of nutrient abatement measures across a cascade of submodels of the driver-pressure-state-impact-response (DPSIR) chain for the Vanemfjord lake in Morsa catchment in south-eastern Norway. The lake is part of a complex lake system in a semi-urbanized catchment dominated by forest and agriculture. The catchment has highly variable seasonal climatic conditions affecting nutrient run-off and algal blooms. It has been one of the most eutrophic lakes in Norway with periodic cyanobacteria blooms, but continues to attract a large recreational user population, despite the large variations in water quality. The "DPSIR-OOBN" model is used as a case study of "integrated valuation" and evaluated for its applicability for decision support in nutrient abatement. We find that the DPSIR-OOBN model meets seven of the nine criteria we propose for "integrated valuation". The model struggles to meet the criteria that ecological, social and economic values should be defined consistently in relation to impacts on lake quality. While the DPSIR-OOBN integrates from valuation methods across an ecosystem cascade to management alternatives, it is neither a full benefit-cost analysis, nor a multi-criteria analysis. However, we demonstrate how the DPSIR-OOBN can be used to explore issues of consistency in scaling and weighting of different ecological, social and economic values in the catchment system. Bayesian belief networks offer a consistent approach to analysing how management implementation probability may determine economic valuation. We discuss the implication of our integrated valuation not being able to account for farmer responses, in particular the incentive effects of the model not being able to predict abatement effectiveness and value. The resolution of the nutrient monitoring data and modeling technologies that were at our disposal are probably better in the Morsa catchment than for any other catchment of this size in Norway. We therefore conclude that using our integrated valuation model for assessing benefits of eutrophication abatement measures as part of the EU Water Framework Directive still lies in the realm of utopia – euphemistically speaking a "eutropia". ; Financial support has been provided by the Research Council of Norway for the EUTROPIA project (grant no. 190028/S30), the European Union for the project FP6 AQUAMONEY (contract no. SSPI-022723), FP7 REFRESH (grant no. 244121) and the FP7 OpenNESS project (grant no. 308428). ; publishedVersion
BASE
The term "integrated valuation" is defined and its relevance is discussed in terms of bridging the gap between cost-effectiveness analysis and economic valuation in the implementation of the European Union Water Framework Directive. We demonstrate how to integrate benefit valuation with the ecosystem services cascade framework using an Object-Oriented Bayesian Network (OOBN). The OOBN is then used to assess the benefits of nutrient abatement measures across a cascade of submodels of the driver-pressure-state-impact-response (DPSIR) chain for the Vanemfjord lake in Morsa catchment in south-eastern Norway. The lake is part of a complex lake system in a semi-urbanized catchment dominated by forest and agriculture. The catchment has highly variable seasonal climatic conditions affecting nutrient run-off and algal blooms. It has been one of the most eutrophic lakes in Norway with periodic cyanobacteria blooms, but continues to attract a large recreational user population, despite the large variations in water quality. The "DPSIR-OOBN" model is used as a case study of "integrated valuation" and evaluated for its applicability for decision support in nutrient abatement. We find that the DPSIR-OOBN model meets seven of the nine criteria we propose for "integrated valuation". The model struggles to meet the criteria that ecological, social and economic values should be defined consistently in relation to impacts on lake quality. While the DPSIR-OOBN integrates from valuation methods across an ecosystem cascade to management alternatives, it is neither a full benefit-cost analysis, nor a multi-criteria analysis. However, we demonstrate how the DPSIR-OOBN can be used to explore issues of consistency in scaling and weighting of different ecological, social and economic values in the catchment system. Bayesian belief networks offer a consistent approach to analysing how management implementation probability may determine economic valuation. We discuss the implication of our integrated valuation not being able to account for farmer responses, in particular the incentive effects of the model not being able to predict abatement effectiveness and value. The resolution of the nutrient monitoring data and modeling technologies that were at our disposal are probably better in the Morsa catchment than for any other catchment of this size in Norway. We therefore conclude that using our integrated valuation model for assessing benefits of eutrophication abatement measures as part of the EU Water Framework Directive still lies in the realm of utopia – euphemistically speaking a "eutropia".
BASE
The term "integrated valuation" is defined and its relevance is discussed in terms of bridging the gap between cost-effectiveness analysis and economic valuation in the implementation of the European Union Water Framework Directive. We demonstrate how to integrate benefit valuation with the ecosystem services cascade framework using an Object-Oriented Bayesian Network (OOBN). The OOBN is then used to assess the benefits of nutrient abatement measures across a cascade of submodels of the driver-pressure-state-impact-response (DPSIR) chain for the Vanemfjord lake in Morsa catchment in south-eastern Norway. The lake is part of a complex lake system in a semi-urbanized catchment dominated by forest and agriculture. The catchment has highly variable seasonal climatic conditions affecting nutrient run-off and algal blooms. It has been one of the most eutrophic lakes in Norway with periodic cyanobacteria blooms, but continues to attract a large recreational user population, despite the large variations in water quality. The "DPSIR-OOBN" model is used as a case study of "integrated valuation" and evaluated for its applicability for decision support in nutrient abatement. We find that the DPSIR-OOBN model meets seven of the nine criteria we propose for "integrated valuation". The model struggles to meet the criteria that ecological, social and economic values should be defined consistently in relation to impacts on lake quality. While the DPSIR-OOBN integrates from valuation methods across an ecosystem cascade to management alternatives, it is neither a full benefit-cost analysis, nor a multi-criteria analysis. However, we demonstrate how the DPSIR-OOBN can be used to explore issues of consistency in scaling and weighting of different ecological, social and economic values in the catchment system. Bayesian belief networks offer a consistent approach to analysing how management implementation probability may determine economic valuation. We discuss the implication of our integrated valuation not being able to account for farmer responses, in particular the incentive effects of the model not being able to predict abatement effectiveness and value. The resolution of the nutrient monitoring data and modeling technologies that were at our disposal are probably better in the Morsa catchment than for any other catchment of this size in Norway. We therefore conclude that using our integrated valuation model for assessing benefits of eutrophication abatement measures as part of the EU Water Framework Directive still lies in the realm of utopia – euphemistically speaking a "eutropia". ; submittedVersion
BASE
The term "integrated valuation" is defined and its relevance is discussed in terms of bridging the gap between cost-effectiveness analysis and economic valuation in the implementation of the European Union Water Framework Directive. We demonstrate how to integrate benefit valuation with the ecosystem services cascade framework using an Object-Oriented Bayesian Network (OOBN). The OOBN is then used to assess the benefits of nutrient abatement measures across a cascade of submodels of the driver-pressure-state-impact-response (DPSIR) chain for the Vanemfjord lake in Morsa catchment in south-eastern Norway. The lake is part of a complex lake system in a semi-urbanized catchment dominated by forest and agriculture. The catchment has highly variable seasonal climatic conditions affecting nutrient run-off and algal blooms. It has been one of the most eutrophic lakes in Norway with periodic cyanobacteria blooms, but continues to attract a large recreational user population, despite the large variations in water quality. The "DPSIR-OOBN" model is used as a case study of "integrated valuation" and evaluated for its applicability for decision support in nutrient abatement. We find that the DPSIR-OOBN model meets seven of the nine criteria we propose for "integrated valuation". The model struggles to meet the criteria that ecological, social and economic values should be defined consistently in relation to impacts on lake quality. While the DPSIR-OOBN integrates from valuation methods across an ecosystem cascade to management alternatives, it is neither a full benefit-cost analysis, nor a multi-criteria analysis. However, we demonstrate how the DPSIR-OOBN can be used to explore issues of consistency in scaling and weighting of different ecological, social and economic values in the catchment system. Bayesian belief networks offer a consistent approach to analysing how management implementation probability may determine economic valuation. We discuss the implication of our integrated valuation not being able to account for farmer responses, in particular the incentive effects of the model not being able to predict abatement effectiveness and value. The resolution of the nutrient monitoring data and modeling technologies that were at our disposal are probably better in the Morsa catchment than for any other catchment of this size in Norway. We therefore conclude that using our integrated valuation model for assessing benefits of eutrophication abatement measures as part of the EU Water Framework Directive still lies in the realm of utopia – euphemistically speaking a "eutropia". ; publishedVersion
BASE
The term "integrated valuation" is defined and its relevance is discussed in terms of bridging the gap between cost-effectiveness analysis and economic valuation in the implementation of the European Union Water Framework Directive. We demonstrate how to integrate benefit valuation with the ecosystem services cascade framework using an Object-Oriented Bayesian Network (OOBN). The OOBN is then used to assess the benefits of nutrient abatement measures across a cascade of submodels of the driver-pressure-state-impact-response (DPSIR) chain for the Vanemfjord lake in Morsa catchment in south-eastern Norway. The lake is part of a complex lake system in a semi-urbanized catchment dominated by forest and agriculture. The catchment has highly variable seasonal climatic conditions affecting nutrient run-off and algal blooms. It has been one of the most eutrophic lakes in Norway with periodic cyanobacteria blooms, but continues to attract a large recreational user population, despite the large variations in water quality. The "DPSIR-OOBN" model is used as a case study of "integrated valuation" and evaluated for its applicability for decision support in nutrient abatement. We find that the DPSIR-OOBN model meets seven of the nine criteria we propose for "integrated valuation". The model struggles to meet the criteria that ecological, social and economic values should be defined consistently in relation to impacts on lake quality. While the DPSIR-OOBN integrates from valuation methods across an ecosystem cascade to management alternatives, it is neither a full benefit-cost analysis, nor a multi-criteria analysis. However, we demonstrate how the DPSIR-OOBN can be used to explore issues of consistency in scaling and weighting of different ecological, social and economic values in the catchment system. Bayesian belief networks offer a consistent approach to analysing how management implementation probability may determine economic valuation. We discuss the implication of our integrated valuation not being able to account for farmer responses, in particular the incentive effects of the model not being able to predict abatement effectiveness and value. The resolution of the nutrient monitoring data and modeling technologies that were at our disposal are probably better in the Morsa catchment than for any other catchment of this size in Norway. We therefore conclude that using our integrated valuation model for assessing benefits of eutrophication abatement measures as part of the EU Water Framework Directive still lies in the realm of utopia – euphemistically speaking a "eutropia". ; publishedVersion
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