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The use of contingent valuation (CV) methods to estimate benefits has become increasingly common in project analysis. Ever since the NOAA Blue Ribbon Panel Report in 1993 (NOAA, 1993) recommended the use of the referendum form of CV, it seems to have become the method of choice in practical settings. Referendum-type questions are thought to be easier to answer than the open-ended variety. But there is a downside: econometric techniques must be applied to the referendum data in order to infer the mean or median willingness to pay (WTP) of the sample and, thus, of the population of potential beneficiaries. This is not, however, just a technical point. Its implications are demonstrated with data obtained from a referendum CV study done for a proposed sewer and wastewater treatment project designed to improve water quality in the Tietê River flowing through the city of São Paulo, Brazil. The results show that: A factor of 4 separates lowest from highest central tendency estimates of WTP, ignoring one implausible outlier that is 14 times larger than the largest of the other figures. This variation is ample enough to make a difference in the cost-benefit analysis results for the project under conservative assumptions. Analysts that use referendum CV data must be sensitive to the problems they buy into, and decide how to deal with the resulting benefits uncertainty in their project analysis. If the principal use of CV survey data is to produce a mean or median estimate of WTP for Cost-Benefit analysis rather than to test for the factors influencing referendum choice responses and, by implication, WTP, nonparametric approaches have the advantage of simplicity over parametric approaches. / Master of Arts

Yes / This paper considers recent field evidence to analyse what online public services citizens need, explores potential citizen subsidy of these specific services and investigates where resources should be invested in terms of media accessibility. We explore these from a citizen-centric affordability perspective within three ‘exemplar’ developing countries in sub-Saharan Africa. The World Bank and United Nations in particular promote initiatives under the ‘Information and Communication Technologies for Development’ (ICT4D) to stress the relevance of e-Government as a way to ensure development and reduce poverty. We adopt a ‘Contingency Value’ method to conceptually outline reported citizens willingness to pay for digital public services. Hence, our focus is mainly upon an empirical investigation through extensive fieldwork in the context of sub-Sahara Africa. A substantive survey was conducted in the respective cities of Addis Ababa (Ethiopia), Lagos (Nigeria) and Johannesburg (South Africa). The sample of citizens was drawn from each respective Chamber of Commerce database for Ethiopia and South Africa, and for Nigeria a purchased database of businesses, based on stratified random sampling. These were randomly identified from both sectors ensuring all locations were covered with a total sample size of 1,297 respondents. It was found, in particular, that citizens were willing to pay to be able to access digital public services and that amounts of fees they were willing to pay varied depending on what services they wish to access and what devices they use (PCs or mobile phones). / European Investment Bank under the EIB-Universities Research Action Programme

Yangtze finless porpoises (YFPs) are the only fresh-water adapted porpoises in the world and they are endemic to Yangtze River system, including Poyang Lake. They are threatened by many factors, such as illegal fishing and overfishing, sand dredging, intensive shipping traffic, and pollution from agriculture and industry. Consequently, their population is decreasing at a great rate and they are listed as an endangered rare species on the red list of the International Union for Conservation of Nature (IUCN) since 1996. Moreover, a hydroelectricity project in Poyang Lake is in planning by the state of Jiangxi province, which will generate further serious threats to YFPs by cutting off their migration route and fragmenting their habitat. Therefore, it is very urgent to take some protection measures for YFPs. A special nature reserve is one possibility to protect YFPs, such as a nature reserve area, which is located in Poyang Lake. In order to find out whether a nature reserve is worthwhile, an economic analysis valuing the benefit of YFPs has been conducted. An appropriate method, the contingent valuation approach, has been chosen. The overall aim of such a contingent valuation study is to estimate the total benefits of YFPs by asking individuals’ willingness to pay for the porpoise conservation project. Because many people are unfamiliar with YFPs and the species’ total values consist of mainly non-use values, preference construction and estimating a demand function is a complex task. Therefore, the valuation workshop method, a group-based approach, which can make respondents motivated and well-informed so that they thoroughly consider the questions, provides a realistic decision-making environment. This method was selected to help respondents construct their preference. Within this study, a series of such valuation workshops were successfully organized and data and information were collected. The findings of the study have both methodological and policy-related implications. From the perspective of methodology, the important findings include: 1) Valid response rates are high enough to support further analysis and large mean WTP for porpoise conservation are obtained. Therefore, it can be concluded that the valuation workshop method as has been chosen in this study, is suitable for valuing porpoise conservation. The valuation workshop method can make people well informed about environmental goods and services, such as rare species, so that they can build their preference about them, which is quite a complex task for many individuals. IV 2) Distance effects are verified to fail to work on willingness to pay (WTP) for porpoise conservation, which is mostly driven by non-use values. Therefore, distance need not be included in the aggregation analysis of total benefits of YFPs. Similarly, the market for conservation of YFPs can be defined as the nation of China. And the sampling frame of such an evaluation of a rare species can be all the Chinese population. 3) Income effects are confirmed to be significantly influential for both Chinese respondents and German respondents. Hence, the aggregation of total values of YFPs should consider about individuals’ income levels and their ability to pay (ATP). It is inferred from the fact of smaller mean WTP in China as compared with Germany that some low-income respondents’ WTP bids are possibly distorted by their ATP, which needs further confirmation in follow-up research. In addition, there are also some policy-related implications, which are closely related with the mentioned methodological aspect: The total economic values of porpoise conservation are predicted to be appreciably huge. Definitely, their total benefits should be taken into account by politicians and decision-makers. This study makes explicit people’s attitudes and preference on the trade-off between economic growth and ecological use. The establishment of a special nature reserve for YFPs is still an open question.

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The purpose of this study is to investigate methods for assessing the value people place on preserving our natural environments and resources. It focuses on the contingent valuation method, which is a method for directly asking people about their preferences. In particular, the study focuses on the use of discrete response data in contingent valuation experiments.The first part of the study explores the economic theory of the total value of a natural resource, where the principal components of total value are analyzed; use values and non-use values. Our application is a study of the value Swedes' attach to the preservation of eleven forest areas that contain high recreational values and contain unique environmental qualities. Six forests were selected on the basis of an official investigation which includes virgin forests and other areas with unique environmental qualities. In addition, five virgin forests were selected.Two types of valuation questions are analyzed, the continuous and the discrete. The first type of question asks directly about willingness to pay, while the second type suggests a price that the respondent may reject or accept. The results of the continuous question suggest an average willingness to pay of about 1,000 SEK per household for preservation of the areas. Further analysis of the data suggests that this value depends on severi characteristics of the respondent: such as the respondent's income and whether or not the respondent is an altruist.Two econometric approaches are used to analyze the discrete responses; a flexible parametric approach and a non-parametric approach. In addition, a Bayesian approach is described. It is shown that the results of a contingent valuation experiment may depend to some extent on the choice of the probability model. A re-sampling approach and a Monte-Carlo approach is used to shed light on the design of a contingent valuation experiment with discrete responses. The econometric analysis ends with an analysis of the often observed disparity between discrete and continuous valuation questions.A cost-benefit analysis is performed in the final chapter. The purpose of this analysis is to illustrate how the contingent valuation approach may be combined with opportunity cost data to improve the decision-basis in the environmental policy domain. This analysis does not give strong support for a cutting alternative. Finally, the results of this investigation are compared with evidence from other studies.The main conclusion of this study is that assessment of peoples' sentiments towards changes of our natural environments and resources can be a useful supplement to decisions about the proper husbandry of our natural environments and resources. It also highlights the importance of careful statistical analysis of data gained from contingent valuation experiments. / digitalisering@umu

The aim of this study is to quantify the social cost of air pollution in Bophelong Township. Bophelong is a dominantly Black low-income settlement located on the South-western part of the Emfuleni Local Municipality in the Vaal Triangle. In 2006 the Vaal Triangle was the first region in the country to be declared an Airshed Priority Area in terms of the National Environmental Management Act (39/2004). Economic literature reveals that there is a strong positive correlation between poverty and pollution. It is on this basis that the study provides a theoretical background to poverty and pollution. The study makes use of a Contingent valuation method to elicit respondents‘ maximum willingness to pay for the reduction of air-pollution in the area. The survey questionnaire covers three broad socio-economic categories namely, the demographic profile, labour force profile and the residents‘ attitudes towards environmental issues. The valuation part of the questionnaire makes use of an open-ended questionnaire to elicit the respondents‘ maximum willingness to pay for the reduction of air pollution in Bophelong. The mean willingness to pay for the reduction of air-pollution in Bophelong is estimated at R132 per annum. The annual social cost of air-pollution in Bophelong is calculated by multiplying the mean willingness to pay with the estimated total population. Bophelong‘s total population was estimated at 49 408. The annual social cost of pollution is thus estimated at R6 521 856. The regression analysis shows that several factors positively influence respondents‘ willingness to pay. The analysis shows that education, employment and level of income are positively correlated with the respondents‘ willingness to pay. This study indicates that there is a positive correlation between poverty and pollution. Most of the air pollution that affects the population of Bophelong is generated from domestic sources such as the burning of coal and biomass fuels for VALUING THE SOCIAL COST OF AIR-POLLUTION IN BOPHELONG TOWNSHIP heating and cooking purposes. In order to eliminate the negative impacts of air pollution on the residents of Bophelong the study recommends that authorities must begin by ameliorating the poverty situation in the area. On the main authorities must introduce measures that target domestic sources of pollution. Some of the measures that could be undertaken to reduce the impact of pollution could include: (a) encouraging residents to adopt the more cleaner top-down coal ignition method known as Basa-njengo-Magogo, (b) providing free basic electricity to poor households in the area and (c) ensuring that houses are constructed with thermal comfort in mind, as this will minimise the need for space heating particularly during winter months. / PhD (Economics), North-West University, Vaal Triangle Campus, 2013

The adequacy of existing transport infrastructure to four distinct clusters in Austria's key regions is tested by examining the willingness of logistics managers to pay for additional service improvements. Findings show an overall willingness to pay for multiple service improvements; this reveals a general dissatisfaction with current shipping options, regardless of transport mode, where rail mode services ("Bahn") provoke the greatest dissatisfaction. Willingness to pay for improvements generally increases by degrees of regional EU remoteness and relative youth of cluster industries, as hypothesized from Schumpterian assumptions concerning infrastructure innovation. / Series: SRE - Discussion Papers

This thesis examines the feasibility of economic incentives for reforestation, with improved water quality being one potential benefit, in the Fond D’or watershed of Saint Lucia. Population growth, economic development, and the onset of climate change have decreased the environmental quality in Small Island Developing State (SIDS) while increasing risk to the islands’ water security. The unique topography and geology of Caribbean island nations contribute to the challenges of managing freshwater resources. The governments of SIDS often lack the human and financial resources to provide potable water for their citizens, as well as to monitor and enforce environmental regulations limiting land use in watersheds. Therefore, a new approach to watershed management in Saint Lucia is imperative for the provision of valuable ecosystem services at the local, regional, and global scales. Payments for ecosystem services (PES) are a promising approach to the protection and maintenance of public ecosystem services where there is little incentive for private landowners to provide them. The first article explores household willingness-to-pay (WTP) for reforestation in Fond D’or watershed. The contingent valuation method was used to obtain residents’ WTP for a hypothetical scenario in which an increase in water users’ fees are used to fund a program where farmers in the upper watershed are compensated for taking land near water sources out of agricultural production for reforestation. The findings from 294 household surveys provide a description of the state of water quality and quantity in the Fond D’or, domestic water uses and sources, as well as attitudes and opinions about current water service. Bivariate analyses were performed to identify underlying factors that influence WTP, revealing that increased WTP is not a result of higher education and income. Rather, residence in a particular community group likely influences opinions about water, ultimately shaping WTP. Lastly, I discuss WTP in terms of its potential contribution to a PES scheme in Saint Lucia; WTP by local beneficiaries represents one potential funding source for PES mechanisms as well as public support for environmental improvement programs. The second article describes a methodological approach to constructing a PES scheme in the Fond D’or watershed. Of the five environmental policy approaches— prescription, penalties, property rights, persuasion, and payments—payment is likely to be the most feasible method to influence private land management decisions for the provision of ecosystem services for the public good. This article draws upon existing PES schemes for hydrological services around the globe to provide key lessons for expanding the use of the instrument to Saint Lucia. I apply these lessons to the social, political, and institutional context of Saint Lucia, identifying opportunities for and challenges to developing local or regional payment schemes for ecosystem services in the Fond D'or watershed. I outline the steps to constructing a PES and recommend further research to Saint Lucian policymakers.

Estudos sobre a relação da poluição atmosférica e saúde apontam que há relação entre as queimadas de cana-de-açúcar e internações hospitalares, gerando custos para a sociedade. Este trabalho apresenta uma aplicação do Método de Avaliação Contingente para valorar os custos do bem-estar causados pela queimada de cana-de-açúcar. O fogo utilizado em um largo processo gera vários problemas para os moradores, passando por problemas de saúde pelo inconveniente causado pela fuligem que cai sobre as cidades no período de abril a novembro. A aplicação é feita na cidade de Ribeirão Preto, um dos maiores produtores de cana-de-açúcar e álcool no Brasil. Por meio dos métodos logit censurado, Heckman em dois estágios adaptado e Máxima Verossimilhança, calculou-se a disposição a pagar média e os resultados obtidos indicam que o custo estimado é em torno de R$ 180 milhões, para o período de 2009 a 2017. Tal valor está provavelmente subestimado já que o custo do bem-estar envolvendo as queimadas de cana-de-açúcar também passa pelos gastos com as internações hospitalares por doenças respiratórias. Dessa forma, propôs-se a verificação da relação entre as internações e a presença de cana-de-açúcar nos municípios do Estado de São Paulo. De acordo com dados do DATASUS, a região Sudeste gasta em torno de R$ 20 milhões por ano com esse tipo de internação, porém esse custo também está subestimado já que não leva em consideração os custos com inalação, atendimento ambulatorial e outros tratamentos posteriores à internação. / Studies on the relation of air pollution and health said that there is a relationship between sugar cane burning and hospital attendance, generating costs to society. This work presents an application of Contingent Valuation Method to evaluate the welfare costs of sugar cane fire. The use of fire in the process of sugar cane leads to many problems to near fire residents such as health problems caused by the soot over the cities from April to November. The application was made for the city of Ribeirão Preto, the major city in production of sugar cane and alcohol in Brazil. Using Censored Logit, Two Stage Heckman adapted and Maximum Likelihood methods an average willing to pay was estimated and the results indicate that the estimated cost is about R$ 180 millions from 2009 to 2017. This estimated value probably is underestimated since welfare costs of sugar cane burning for health also involve spending in hospitals admissions and respiratory diseases. Therefore, it is verified the relation of hospital admissions and the presence of sugar cane in São Paulo State cities. Using DATASUS database the Southeast region of Brazil spends R$ 20 millions a year with this type of hospital admissions, however this cost is also underestimated because it doesn\'t account for inhalation costs, ambulatory services and posterior treatment due admission.