Eutrophication caused by nutrient loads from human activities is considered as one of the most serious environmental threats to the Baltic Sea. Due to climate change, cyanobacterial blooms are expected to increase in the future. This could affect people’s utility of beach recreation negatively in countries surrounding the Baltic. Based on a web survey carried out in south-eastern Sweden, public’s reactions and attitudes to cyanobacterial blooms are analysed. Possible economic impact on Gotland of more widespread blooms are estimated, and public demand for better information is evaluated. The result shows that 30% of the respondents from south-eastern Sweden would consider cancelling their plans of travelling to Gotland with knowledge about forthcoming algal blooms around the island. Determinants of tourists’ tendency to cancel their travel arrangements are earlier negative experiences of algal blooms and concerns regarding their pets’ bathing. The annual local economic loss for Gotland’s tourism industry is estimated to between 15 and 221 million SEK. The median willingness to pay for a mobile application which provides one-day forecasts of algal blooms is 25 SEK on Gotland and 20 SEK in southeastern Sweden. Boat owners, people who visit beaches often and those who travel to Gotland frequently, are more likely to pay for the mobile application. People who think algal blooms are natural show less demand for information.

Mass customization (MC) constitutes a promising strategy for companies which aim to provide products which are better adapted to individual customers' aesthetic and functional preferences. Drawing on commodity theory, we argue that the perceived uniqueness of a self-designed product is a second driver of utility in MC. We find that in addition to the significant effect of aesthetic and functional fit, the perceived uniqueness of a self-designed product (1) contributes independently to the utility a customer experiences, and (2) that this effect is moderated by the consumer's need for uniqueness. In product categories which can serve this counterconformity motive for consumers, this suggests that MC toolkits should be constructed with the objective of facilitating the creation of unique products as well as providing affirmative feedback that this uniqueness has been achieved. (authors' abstract)

Master of Agribusiness / Department of Agricultural Economics / Vincent R. Amanor-Boadu / While understanding consumer decisions about food choices is complex, the nature of wines makes it even more difficult to decipher how consumers arrive at their choices. Given the perceived importance of "local", how willing are consumers to pay for locally-produced wine? And, what characteristics of the wine influence the premium that consumers pay for it? These are the two related questions that this research seeks to address. The research uses a case study approach to explore how five wine characteristics of local Kansas wine influence the premium consumers are willing to pay. The five characteristics are appearance, aroma, body, taste and finish. The study uses four pairs of wine in the following groups: sweet white, dry white, semi-sweet red and dry red. Each pair is made up of a Kansas wine and a non-Kansas wine. A very well-defined set of focus group participants were invited to taste these wine without knowing the identity of the wines and score them according to their characteristics and then provide an indication of how much they are willing to pay. The case results indicate that the focus group participants were willing to discount Kansas wines in all cases of the four pairs. The factors affecting the discount were finish for sweet white wines, appearance for sweet red wines, taste and aroma for dry white and dry red wines. The implication of this exploratory case study is that while most local residents proclaim their willingness to pay a premium for local wines, when tested against national or international competitors, consumers are unwilling to pay a premium for these local wines because the local wines lack the desired quality the international wines have. The information is important because it provides direction for an entrepreneur seeking to develop local wines to focus on understanding and addressing the characteristics which influence consumers' willingness to pay a premium even as she determines which particular wines current players in the local Kansas industry has the potential to be competitive if they address the characteristics upon which they are penalized by consumers. This, despite this being an exploratory case study, it provides important direction for entrepreneurial action.

This research examines a new methodology for prospectively estimating the willingness of travelers to use a toll road by combining travel time saved with the income of the prospective customer base. The purpose of the research is to facilitate network level planning by allowing some reasonable predictions of acceptable toll rates from readily available data and estimation techniques. Methods of estimating user benefit resulted in simulated distributions of value of user time. Values of time are linked to census tract income data for the user population to produce value of time as a percentage of income as an indicator. As relevant literature acknowledges the tendency toward increased toll road usage at higher income levels, it is hypothesized that linking estimates of value of time directly to household income would produce a more useful indicator of the travel market than do conventional indicators. Techniques for prospectively estimating the travelshed of a toll road are compared with the actual travelshed, as reflected in user home census tracts, as a means of evaluating the efficacy of those techniques in estimating the market area of a prospective toll road. Results show that considering value of time as a percentage of census tract median income provides an improved portrayal of the toll road market, as usage of the toll road increases with increasing income. Using census tract median income as the income parameter has shortcomings, in that it produces anomalous results at very low population levels. Of the two methods of estimating the travelshed, the visual estimation approach was not satisfactory, leaving the analyst to use select link analyses instead.

This study focuses on the feasibilities of Marine Recreational Fishing at Hsiao- Liu-Chiu Island by presenting its resource distribution and discussing the current fishing business conditions around the island. The current situations of local re- creational fishing businesses are evaluated by SWOT analysis. Tourists who visit the island are surveyed as research subject. Through questionnaires and field recreation activity investigation, this study demonstrates various possible development of re- creational fishing. The conceptual framework of this study is based on a non- marketing method - Contingent Valuation Method (CVM) - to analyze collected data. The method has estimated the economical value of Hsiao-Liu-Chiu Island for future recreation activities with the willingness-to-pay (WTP) among the visiting tourists. A proper managerial and administrative system is also suggested in order to bring optimal performance in terms of economical value and resource application for the island's fishermen and tourists. According to the data collected: 70% of tourists are willingly to participate sport fishing; 90% would like to try recreational cage. And under CVM estimation, the WTP for sport fishing is about NT$896 per person, and NT$738 per person for recreational cage. Considering the total annual tourist population visiting Hsiao-Liu- Chiu Island, sport fishing may generates about NT$93,000,000 economical value annually, and about NT$98,000,000 for recreational cage. At the end, this research also provide suggestions on related management strategies and directions for the fishermen, cage owners, and local fishery organization

The city of Austin in recent years has undertaken a number of planning initiatives to guide future development in the rapidly-growing urban area. What has emerged is a clear commitment to a broad definition of sustainability that includes environmental, economic, and social sustainability among both policy makers and the public. The city of Austin has made great strides towards its goal of becoming a model city for sustainability, but it still faces many challenges. The long-term sustainability of Texas construction jobs is threatened by declining wages, dangerous working conditions, and few employment-based benefits. To help address these challenges, the Workers Defense Project (WDP), a local community-based organization dedicated to improving working conditions for Austin’s low-wage workers, has partnered with industry and community stakeholders to create the Premier Community Builders (PCB) certification program. Certification programs, which require businesses to meet minimum set of standards in exchange for a seal or trademark that publicizes their commitment to corporate social responsibility, have become a popular tool in recent years for improving conditions in a variety of industries. Implementing a certification program, however, often drives up costs associated with adopting more sustainable practices and is highly dependent upon consumers’ willingness to pay a price premium for the certified product. The purpose of this research is to explore consumer willingness to pay among downtown Austin residents and tourists for PCB certification. This exploratory study utilizes a contingent valuation survey as the primary instrument to determine whether or not downtown Austin consumers are willing to pay more for PCB certified construction and identify any demographic or identity-related factors associated with downtown consumers’ willingness to pay for PCB certification. / text

Mass customization (MC) constitutes a promising strategy for companies which aim to provide products which are better adapted to individual customers' aesthetic and functional preferences. Drawing on commodity theory, we argue that the perceived uniqueness of a self-designed product is a second driver of utility in MC. We find that in addition to the significant effect of aesthetic and functional fit, the perceived uniqueness of a self-designed product (1) contributes independently to the utility a customer experiences, and (2) that this effect is moderated by the consumer's need for uniqueness. In product categories which can serve this counterconformity motive for onsumers, this suggests that MC toolkits should be constructed with the objective of facilitating the creation of unique products as well as providing affirmative feedback that this uniqueness has been achieved. (authors' abstract)

The use of functional foods by individuals to address health issues has become increasingly common. Pomegranate fruits and other pomegranate products contain phytochemicals, including several antioxidants that may have benefits when consumed as a functional food. The production of pomegranates in the United States is concentrated in California; yet pomegranates can be grown successfully in other regions. The purpose of this study was two-fold: 1) to address the market potential and consumer preferences for pomegranate fruits and other pomegranate products in Texas and 2) to address issues of experimental auction design and estimation in regards to novel products and health benefits of food products. A nonhypothetical experimental procedure was developed that combined preference rankings with a uniform nth-price auction to elicit preferences and willingness-to-pay (WTP) for pomegranate fruit products. Demographic and behavioral characteristics were collected from a representative sample of subjects in the Bryan-College Station area of Texas. Subjects submitted baseline preference rankings and bids on six pomegranate products and a control fruit product, all with the same retail price. Most participants had never purchased or tasted a pomegranate product. Additional information on the pomegranate products was provided in three forms: tasting information, health and nutrition information, and anti-cancer information. Subjects had the greatest WTP for the control product, followed by the juice product, followed by the ready-to-eat products; the whole pomegranate fruits had the lowest WTP. The preference rankings indicated the same order of preferences for the baseline round, but the ranking of the juice product dropped and the ranking of the ready-to-eat and Texas whole fruits rose when additional information was provided. Estimations of the WTP were done using random-effects tobit models and mixed linear models on the full bids and individual changes in bids. Unengaged bidders and bid censoring were addressed. Demographic variables were typically not predictors of WTP with the exception of previous purchases of pomegranates and household size. There were differences in WTP across information treatments, with tasting information having a greater effect than either health and nutrition information or anti-cancer information. Providing a reference price also increased WTP. Preference rankings were estimated using a rank-ordered logit and a mixed rank-ordered logit model. There was an interaction effect of each information treatment with the product characteristics, indicating that studies of effects of information treatments on preferences are not generalizable across products. There was divergence in the results for the preference rankings from the results of the experimental auction; preference rankings and bids gave different results for the same products.

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Wetland loss is a concern in Canada, with significant loss in urban and agricultural areas. Due to their provision of ecological goods and services - water quality improvement, carbon sequestration, flood and erosion control and biodiversity - wetlands are an important natural resource to conserve. A stated preference CVM survey was designed to estimate the non-market values of wetland in the prairie pothole region of Manitoba. This included information on benefits and costs associated with wetland restoration, a referendum portion and a debriefing section. A rigorous design procedure was followed that included several public focus groups and pre-tests. Results from 1,980 individuals indicate that respondents are willing to pay to retain and restore wetlands. Conservative willingness to pay estimates placed between $290 (retention) and $360 (full restoration) per household per year. Aggregated to the entire province over a five year period, this increases to approximately $600 and $730 million, respectively. / Agricultural and Resource Economics