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Background: As rural hospitals in Kentucky face insolvency, stakeholders must assess the value of rural hospitals as well as alternatives such as rural clinics and private physician offices. Objective: To identify the value of attributes of healthcare facilities based on Kentucky’s rural residents’ willingness-to-pay (WTP). Methods: A survey instrument was created and distributed to ten counties in rural Kentucky. A conditional logit model was used to obtain baseline values and then a mixed logit model was used to address heterogeneity among consumers in estimating WTP. WTP values incorporated respondents’ demographic characteristics and their health status from self-reported frequency of use of medical services and distance from these services. Results: The results indicate that on average respondents were willing to pay $69.90 each year for the attribute of a facility that treats patients whether they have health insurance or not, compared to a facility that only accepts patients with private health insurance. Uninsured residents were willing to pay $81.15 for this attribute level. Conclusion: The study suggests that uninsured residents value this attribute level of a facility that grants them access to care. Stakeholders may justify such welfare benefit amounts in support of the establishment or maintenance of such a facility.

The growing interest among consumers in the link between diet and health makes functional food one of the fastest growing sectors in the global food industry, especially functional dairy products. Understanding consumer choices with respect to functional food is an important and relatively new research area. Given the credence nature of functional food attributes, labelling plays a key role in allowing consumers to make informed choices about foods with enhanced health attributes. In 2007, Canada launched a review of the regulatory system for health claims on functional foods, which included rules concerning the approval, labelling and verification of health claims. In 2010 two new health claims related to oat products and plant sterols were approved by Health Canada. An analysis of how consumers respond to health claim information is therefore timely. This thesis focuses on examining the effects of different types of labelling and verification of health claims on consumers stated preferences for a specific functional food product, Omega-3 milk. The analysis incorporates reference-dependent effects. This study improves the knowledge of Canadian consumer understanding of health claims and the impact of health claims on consumer choice. This research is one of the first studies to simultaneously examine the effects of different types of health claims (e.g. function claims, risk reduction claims and disease prevention claims) and other ways of signalling or implying health benefits (e.g. symbols) on Canadian consumers' functional food choices. This study contributes to the knowledge in this domain by providing a comparative analysis of different types of labelling strategies. The extant knowledge of labelling effects in the formats of risk reduction claims, disease prevention claims and symbols or imagery on functional foods is limited. One of the primary contributions of this study is addressing this gap in the literature. The theoretical framework of this thesis is based on random utility theory. A stated preference choice experiment is designed to examine consumers' response to Omega-3 milk under different labelling scenarios. Using data from an online survey of 740 Canadians conducted in summer 2009, discrete choice models, including Conditional Logit, Random Parameter Logit and Latent Class models, and Willingness-To-Pay (WTP) values are estimated. The results suggest that full labelling (function claims, risk reduction claims and disease prevention claims) is preferred over partial labelling (e.g. the use of a heart symbol to imply a health claim), but primarily for risk reduction claims. There is no significant difference between a function claim, such as "good for your heart" and partial labelling in the form of a red heart symbol. The results also suggest that consumers on average respond positively to verification of health claims by government and the third party agencies, however, the Latent Class models reveal considerable heterogeneity in consumer attitudes toward the source of verification. The influences of key-socio-demographic (e.g. income, education and health status) and attitudinal factors (e.g. attitude, trust and knowledge) provide further insights into consumer responses in the choice experiment to identify different consumer segments. Moreover, the results reveal reference-dependent effects where perceived losses of ingredient or price attributes have a greater influence on consumer choice than perceived gains. In terms of industry and public policy implications, this study suggests that food manufacturers in Canada would benefit from the ability to make more precise health claims. The implications derived from the Latent Class Models could help the Canadian functional food industry to identify target consumer segments with different characteristics for the purpose of developing marketing strategies. Furthermore, the results of this study suggest that Canadian consumers are receptive to both full labelling and partial labelling. It indicates that public policy makers need to pay attention to effectively regulating health claims for functional foods so as to balance the need for credible health claims to facilitate the development of the functional food sector with the imperative of protecting consumers from misleading health claims. Public policy makers should also be aware that the verification of health claims plays an important role in reducing consumers' uncertainty and making health claims more credible.

The growing interest among consumers in the link between diet and health makes functional food one of the fastest growing sectors in the global food industry, especially functional dairy products. Understanding consumer choices with respect to functional food is an important and relatively new research area. Given the credence nature of functional food attributes, labelling plays a key role in allowing consumers to make informed choices about foods with enhanced health attributes. In 2007, Canada launched a review of the regulatory system for health claims on functional foods, which included rules concerning the approval, labelling and verification of health claims. In 2010 two new health claims related to oat products and plant sterols were approved by Health Canada. An analysis of how consumers respond to health claim information is therefore timely. This thesis focuses on examining the effects of different types of labelling and verification of health claims on consumers stated preferences for a specific functional food product, Omega-3 milk. The analysis incorporates reference-dependent effects. This study improves the knowledge of Canadian consumer understanding of health claims and the impact of health claims on consumer choice. This research is one of the first studies to simultaneously examine the effects of different types of health claims (e.g. function claims, risk reduction claims and disease prevention claims) and other ways of signalling or implying health benefits (e.g. symbols) on Canadian consumers' functional food choices. This study contributes to the knowledge in this domain by providing a comparative analysis of different types of labelling strategies. The extant knowledge of labelling effects in the formats of risk reduction claims, disease prevention claims and symbols or imagery on functional foods is limited. One of the primary contributions of this study is addressing this gap in the literature. The theoretical framework of this thesis is based on random utility theory. A stated preference choice experiment is designed to examine consumers' response to Omega-3 milk under different labelling scenarios. Using data from an online survey of 740 Canadians conducted in summer 2009, discrete choice models, including Conditional Logit, Random Parameter Logit and Latent Class models, and Willingness-To-Pay (WTP) values are estimated. The results suggest that full labelling (function claims, risk reduction claims and disease prevention claims) is preferred over partial labelling (e.g. the use of a heart symbol to imply a health claim), but primarily for risk reduction claims. There is no significant difference between a function claim, such as "good for your heart" and partial labelling in the form of a red heart symbol. The results also suggest that consumers on average respond positively to verification of health claims by government and the third party agencies, however, the Latent Class models reveal considerable heterogeneity in consumer attitudes toward the source of verification. The influences of key-socio-demographic (e.g. income, education and health status) and attitudinal factors (e.g. attitude, trust and knowledge) provide further insights into consumer responses in the choice experiment to identify different consumer segments. Moreover, the results reveal reference-dependent effects where perceived losses of ingredient or price attributes have a greater influence on consumer choice than perceived gains. In terms of industry and public policy implications, this study suggests that food manufacturers in Canada would benefit from the ability to make more precise health claims. The implications derived from the Latent Class Models could help the Canadian functional food industry to identify target consumer segments with different characteristics for the purpose of developing marketing strategies. Furthermore, the results of this study suggest that Canadian consumers are receptive to both full labelling and partial labelling. It indicates that public policy makers need to pay attention to effectively regulating health claims for functional foods so as to balance the need for credible health claims to facilitate the development of the functional food sector with the imperative of protecting consumers from misleading health claims. Public policy makers should also be aware that the verification of health claims plays an important role in reducing consumers' uncertainty and making health claims more credible.

The purpose of this thesis is to investigate the development of new technologies in the energy industry and to explore how it is possible for these technologies to compete with incumbent technologies in a mature market. The pursuit of renewable energy has been at the forefront of national government and international institutional policy in recent years due to the desire to improve the security of energy supply and to reduce CO2e emissions. This thesis aims to contribute to this policy debate, particularly by focussing on the issue of governmental support for infant energy technologies. In order to conduct this investigation, two main topics have been analysed. Firstly, learning curves have been studied to establish whether support for new technologies can be justified by the potential cost reductions which arise from learning-by-doing. This research evolved into the investigation of econometric issues which affect learning curves. Patent counts are used to demonstrate an alternative output-based measurement of industry wide knowledge stock, which is used as a proxy for innovation. This alternative specification of knowledge stock corroborates recent findings in the literature, that learning curves which model cost using only cumulative capacity leads to the over-estimation of cost reductions from learning-by-doing and the failure to capture cost reductions resulting from innovation. This suggests that government support for infant technologies should form a dual strategy of incentivising the deployment of generators as well as encouraging innovation, instead of using feed-in tariffs or renewable obligations which narrowly focus on increasing deployment. A great deal of progress has been made in identifying further econometric problems affecting learning curves in recent years. In the progress of this study, it was identified that cumulative capacity, the cost of wind power and knowledge stock are all non-stationary time series variables. The hypothesis that these variables are cointegrated was rejected by the Westerlund test, which implies that learning curves produce spurious results. This has major consequences for government policy as it suggests that learning curves should not be used to justify support for infant technologies. Secondly, a choice experiment was conducted to determine Scottish households’ willingness to pay for electricity generated from renewable sources compared to conventional sources such as coal, oil and gas. A labelled choice experiment was used to determine whether households have preferences between onshore wind power, offshore wind power and wave power. The results of a latent class model reveal that the majority of households (76.5%) are willing to pay an additional £89-£196 per year to obtain electricity from renewable resources instead of conventional sources. However, there is no statistically significant difference in the willingness to pay between the renewable technologies included in the choice experiment. The latent class model also illustrated that there is a sizeable minority (23.5%) who are opposed to renewable energy development. Older respondents and those less concerned about CO2 emissions are significantly more likely to form part of this group at the 5% level of significance. The study also included a unique addition by identifying households which purchased a house in the previous seven years. Interacting the actual transaction prices of these houses in a multinomial logit model suggested that households may be concerned about renewable energy developments devaluing their properties or the additional expense required to power larger houses. Due to the increasing difficulty of conducting choice experiments in the UK, a novel method of eliciting choice experiment responses from online advertising was tested and was found to be a cost-effective method of eliciting choice experiment responses. Overall, the research indicates that caution should be exercised when interpreting the results of a choice experiment which elicits responses using Internet advertising. It can be observed that the pseudo R2 of the Internet-based sample is lower than the mail-based sample and that the mean respondent to the Internet-based choice experiment is willing to pay significantly more for renewable electricity than the mean respondent to the mail-based choice experiment at the 5% level of significance. Furthermore, the mean willingness to pay estimate in the Internet-based choice experiment appears to be unrealistically high. Further research investigating the elasticity of survey responses to the prize fund on offer would be valuable in identifying the most cost-effective strategy to obtain responses and to generate a more representative sample.

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Hawaii’s pristine ocean and tropical environment is a keystone of Hawaii tourism and the state economy. Water pollution from stormwater and development threatens the beach quality to both residents and tourists. In order to understand the lost nonmarket value, we assess changes in quality of beach characteristics including water and sand quality, swimming safety conditions, and congestion using a Discrete Choice Experiment of recreational beach users. Further, we study willingness to pay (WTP) for water management strategies in Hawaii using another discrete choice experiment, including structural and nonstructural Best Management Practices, testing, monitoring, and educational efforts. Using a mixed logit model, beach quality results suggest similar preferences among resident and tourists. Both groups consistently have higher WTP to avoid poor quality levels versus obtaining excellent levels. Additionally, water quality is the single most important attribute. For the policy discrete choice experiment, both parties exhibit similar ranking of WTP to initiate water quality management strategies, with improved testing methods followed by education having the highest WTP. Lastly, we use Benefit-Cost analysis to find that all significant management strategies may be viable, since WTP is greater than the predicted cost of implementation based on expert opinion of Hawaiian policy leaders.

This dissertation consists of three chapters that explore environmental policy. Chapter 1 empirically investigates the potential for incentives to encourage the adoption of low-emission alternatives to gasoline motorcycles. Hanoi, Vietnam, like many Asian cities, is experiencing rapid growth in the ownership of personal gasoline-powered motorcycles and scooters, and along with this heightened air quality issues. Electric scooters have the potential to reduce air pollution as an alternative to gasoline-powered motorcycles; however, electric scooters have yet to penetrate the Vietnamese and other large Asian markets. This study uses a choice experiment survey to elicit the demand for electric scooters, with focus on the effects that economic incentives and technology improvements have on adoption. Chapter 2 takes the first steps toward incorporating point sources into the theoretical discussion on nonpoint pollution ambient taxes. Previous investigations into the use of ambient taxes for nonpoint source pollution have not addressed the role of point sources, even though many watersheds have both source types. This paper examines the use of taxes for jointly regulating point and nonpoint sources. A model of point-nonpoint pollution is developed, and within this framework taxes are applied to achieve different regulatory objectives, including implementing optimal emissions reductions, as well as meeting exogenously specified environmental goals at least cost. Discussion centers on comparison of the point and nonpoint taxes in each scenario. Chapter 3 is an experimental economics examination of the design of markets for water quality trading. Water quality trading is endorsed by policymakers as a tool for reducing pollution in watersheds in a cost-effective manner, and many watersheds in the U.S. have established water quality trading programs. As a whole, these programs have not been successful. It is hypothesized that common features of these programs, such as the market institutions in place, may contribute to the limited success. As a first step in empirically investigating water quality trading markets, this study uses laboratory experiments to isolate how different institutions affect economic efficiency. In particular, we compare cap-and-trade, two forms of baseline-and-credit institution, and a tax/subsidy regulation, and examine the effect of introducing fixed technology costs with these four institutions.

THE AUSTRALIAN HEALTH CARE SYSTEM has an overarching objective to improve the well-being of all Australians in an equitable and efficient manner. But like most developed economy health care systems, it has experienced a continual increase in demand for health care services along with increased pressure to improve efficiency, quality, and sustainability. To assist in health sector management, policy formulation, investment decisions and reform, the Australian government developed the National Health Performance Framework (NHPF). The NHPF employs performance indicators across nine dimensions of health care, including Effectiveness, Appropriateness, Efficiency, Responsiveness, Accessibility, Safety, Continuity, Capability, and Sustainability. While the National Health Performance Committee has recognised that performance indicators used within the NHPF are inadequate, this thesis argues that the solution is not a simple matter of collecting additional data and constructing new and ???improved??? indicators. Due to resource constraints within the health care system there is an implicit performance trade-off across dimensions. The NHPF must take into consideration the value individuals place on the health care dimensions to enable a shift of limited resources to those areas that are most valued. The starting point for the NHPF should be to determine what society wants out of a health system. The purpose of this thesis is to determine Australian society???s preferences for performance across the nine NHPF dimensions of health care. This is achieved using a choice modelling experiment, which describes the performance of the current health care system and alternative health care systems the government could work towards, and asks respondents to compare and choose which system they prefer. A mixed multinomial logit model is used to analyse respondent choices in order to incorporate alternative tastes across attributes, and correlation of tastes across alternatives and scenarios. Relative values attached to the nine NHPF dimensions of health care are calculated and preferences for the dimensions are ranked. The thesis concludes by exploring individual preferences derived form the choice modelling experiment in the context of social welfare theory. It also outlines the strengths and weaknesses of the methodology, provides suggestions for further research, and offers a use for social preferences in the development of performance frameworks within the Australian health care system.