Public Preferences for Hydrogen Buses: Comparing Interval Data, OLS and Quantile Regression Approaches

We use a quantile regression (QR) approach to analyse contingent valuation estimates of public willingness to pay (WTP) for the air and noise pollution reductions associated with the introduction of hydrogen buses in London. QR results show that variables that were not significant in interval regression or ordinary least squares regression become significant at certain quantiles along the WTP distribution. In addition, the determinants of WTP at the lower tail of the distribution differ from those at the higher end of the distribution. Our findings illustrate the usefulness of quantile regression methods for analysing contingent valuation data, enhancing our understanding of the determinants of willingness to pay.     

The missing piece: Valuing averting behavior for children's ozone exposures

Individuals can reduce their exposure to air pollution by reducing the amount of time they spend outdoors. Reducing outdoor time is an example of an averting behavior that should be measured as part of willingness to pay (WTP) for improvements in air quality. In this paper, we estimate parents’ WTP to prevent restrictions on a child's outdoor time from a stated-preference (SP) conjoint survey. We combine this WTP measure with an estimate of reductions in time spent outdoors on high-ozone days from an activity-diary study to estimate this averting behavior component of WTP for reductions in ozone pollution.     

Willingness to pay to control PM2.5 pollution in Jing-Jin-Ji Region,China

This letter aims to study individual willingness to pay (WTP) to mitigate PM_2.5 pollution in the Jing-Jin-Ji region by using contingent valuation method. Our survey indicated that residents in this region were highly concerned about PM_2.5 pollution control and supported PM_2.5 pollution control policies. In this study, a payment card (PC) format is used to elicit residents’ perceived WTP. With a two-part model, we estimate the mean WTP for an 80% reduction of severe PM_2.5 polluting days in this region is 602 CNY a year, approximately accounts for 1% of the GDP per capita. This result indicates an important funding source for the government to control PM_2.5 pollution in the region. In the econometric analysis, the mean WTP is found to significantly relate with income, expense, age and education level. It decreases with income, age and educational level, but increases with expense, and it is higher for females, people who have children, own cars and apartments but lower for those having larger families. By comparing with relevant researches, this letter indicates a strong and ever-increasing WTP for air pollution control among residents in the Jing-Jin-Ji region, China.     

Is the Income Elasticity of the Willingness to Pay for Pollution Control Constant?

How willingness to pay for environmental quality changes as incomes rise is a central question in several areas of environmental economics. This paper explores both theoretically and empirically whether or not the willingness to pay (WTP) for pollution control varies with income. Our model indicates that the income elasticity of the marginal WTP for pollution reduction is only constant under very restrictive conditions. Our empirical analysis tests the null hypothesis that the elasticity of the WTP for pollution control with respect to income is constant, employing a multi-country contingent valuation study of eutrophication reduction in the Baltic Sea. Our findings reject this hypothesis, and estimate an income elasticity of the WTP for eutrophication control of 0.1–0.2 for low-income respondents and 0.6–0.7 for high-income respondents. Thus, our empirical results suggest that the elasticity is not constant but is always less than one. This has implications for how benefits transfer exercises, and for theoretical explanations of the environmental Kuznets curve.     

The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model

This paper presents the first value of statistical life (VSL) meta-analysis that empirically estimates correction factors for ‘out of context’ benefits transfer (BT) purposes. In the field of mortality risk reductions elicited willingness to pay values in one risk context, say road safety, are frequently applied in other risk contexts like air pollution. However, differences in risk perception and the population at risk across contexts are likely to result in diverging VSL estimates. In a meta-analysis of 26 international stated preference studies, a Bayesian model is estimated regressing contingent values for mortality risk reductions, originating from three different risk contexts, on the characteristics of the risk reduction itself and additional variables characterizing the underlying studies. A willingness to pay (WTP) premium for mortality risk reductions in the air pollution and general mortality risk context relative to improving road safety is observed. Evaluated at the mean, road safety VSL estimates should be multiplied by a factor 1.8 before being applicable in the air pollution context. Moreover, in an illustrative BT exercise we find limited overlap in the set of context specific predictive VSL distributions. Consequently, ‘out of context’ BT results in a substantial over- or underestimation of the VSL.     

Functionality development dynamism in a diffusion trajectory: A case of Japan's mobile phones development

While it is generally accepted that Information Technology (IT) has a self-propagating function which ensures that the more widespread its use, the greater its functionality, its emerging dynamism remains a black box.This paper attempts to shed some light on this dynamism through utilizing monthly trend data for the number of Japan's mobile phone subscribers over the last 12 years. A bi-logistic growth model demonstrating the diffusion trajectory initiated by both generations of mobile phones was constructed, with the goal of identifying the increase in the functionality development in the transition from traditional mobile phones with a simple communication function (1st wave mobile phone) to mobile phones with an Internet protocol function (2nd wave mobile phone).Through an empirical analysis utilizing the bi-logistic growth model, it was determined that the 2nd wave mobile phone emerged at an earlier stage of diffusion trajectory than the 1st stage mobile phone, which enabled a sustainable functionality development in Japan's mobile phones over the decade.Factors governing a dramatic decrease in mobile phones prices were analyzed, utilizing the result of the measurement of functionality development. This led to the discovery that while an increase in functionality development enhanced the price of mobile phones, this increase accelerated self-propagating diffusion, thereby enabling a dramatic reduction in prices through the effects of learning exercise and economies of scale.Based on the foregoing findings, the driving forces of self-propagating functionality development were analyzed, and it was determined that effective utilization of potential resources in innovation (e.g., assimilation of spillover technology and learning effects) is the key driving forces behind self-propagating functionality development.     

Willingness to pay for a clear night sky: use of the contingent valuation method

This article applies the Contingent Valuation Method (CVM) to the issue of night sky pollution. Light pollution decreases the ability to view a clear, unobstructed night sky. We administered a survey to the students of the Rochester Institute of Technology (RIT) to obtain estimates of Willingness To Pay (WTP) to improve night sky visibility and to prevent deterioration in visibility. This is the first CVM study that attempts to distinguish between these different WTPs. We find that students are willing to pay significantly more for a larger improvement in night sky conditions. We also find significant differences in WTP to improve versus prevent deterioration in night sky conditions.     

The Economic Value of Air-Pollution-Related Health Risks in China: A Contingent Valuation Study

The economic value of preventing adverse health effects related to air pollution is estimated using contingent valuation in three diverse locations in China. Values are estimated for three health endpoints: cold, chronic bronchitis, and fatality. Alternative statistical models are tested to study their impact on estimated willingness to pay (WTP) and on the relationship between WTP and respondent characteristics. Using the official exchange rate, the sample-average median WTP to prevent an episode of cold ranges between US$3 and US$6, the WTP to prevent a statistical case of chronic bronchitis ranges between US$500 and US$1,000, and the value per statistical life ranges between US$4,000 and US$17,000. Estimated mean values are between two and thirteen times larger. Our estimates are between about 10 and 1,000 times smaller than estimates for the US and Taiwan using official exchange rates. Indoor air quality, measured for a subset of respondents, shows no consistent relationship with WTP.     

A cost-benefit analysis of restoring the Em River in Sweden: valuation of angling site characteristics and visitation frequency

This article uses Cost-Benefit Analysis (CBA) to evaluate restoration scenarios aimed at improving angling on the Em River in Sweden. We find that none of the proposed projects are socially profitable when considering only values associated with angling. We rely on a Choice Experiment (CE) to derive utilities and estimate the monetary value of angling site characteristics and then also use the utilities derived in a visitation frequency using a two-stage budgeting approach. The visitation frequency is then used to extract values for fishing license sales and business-related income. The case study illustrates how CBA can provide useful insights into the potential economic returns of environmental restoration projects. Our case study also indicates that the results in terms of Willingness-To-Pay (WTP) and visitation frequency are general findings – i.e. they appear similar across angling sites – which is particularly useful from a policy point of view because it supports the use of benefit transfer for more cost-effective river management.     

Embedding effects in choice experiment valuations of environmental preservation projects

This paper addresses the question, whether attribute values derived from a CE study of one nature restoration and preservation project depend on the overall scale of nature preservation activities in which it is embedded. A split-sample CE study was undertaken in which a particular nature preservation project was evaluated in three plausible and strictly different embedding contexts. Respondents' attention was drawn to a varying number of forthcoming substitute preservation projects to be implemented prior to the one in question. Results show that while WTP for the project in focus is sensitive to the presentation of substitute projects as such, there does not seem to be any clear and unidirectional relationship between WTP and the number of substitute projects. Furthermore, effects vary across the project's attributes.     

Temporal stability of preferences and willingness to pay for natural areas in choice experiments: A test–retest

The main objective of this paper is to test the temporal stability of stated preferences and willingness to pay (WTP) values from a Choice Experiment (CE) in a test–retest. The same group of participants was asked the same choice tasks in an internet-based CE, conducted twice with a time interval of one year without interviewer interference. We examine choice consistency at individual choice task level and transferability of the underlying indirect utility function and associated WTP values. The results show that choices are consistent in 57 percent of the choice occasions. Comparison of the choice models over time shows that the estimated preference and scale parameters are significantly different, suggesting that choice behaviour changed between the two surveys. Differences between marginal WTP estimates for individual choice attributes are statistically significant only at the 10 percent level. However, we show that this can result in significantly different WTP values for policy scenarios. The instability of estimated mean WTP values for different policy scenarios asks for caution when including WTP values in cost-benefit analysis.     

Some issues in the application of closed-ended willingness to pay studies to valuing health goods: an application to antenatal care in Scotland

Limited resources coupled with unlimited demands means that decisions have to be made concerning the allocation of scarce health care resources. The economic instrument of willingness to pay (WTP) is one instrument that can be used to help this decision-making process. Recommendations from the environmental economics literature suggest that the closed end (CE) WTP approach should be used. This approach is just beginning to be used to value health goods. This paper addresses the sensitivity of the closed-ended WTP approach to three issues: the design of the bid vector; the upper and lower limits of integration; and the method of analysis. These are discussed with reference to a study looking at the value of alternative models of ante-natal care in Scotland. The results are discussed and conclusions made concerning the use of the CE WTP instrument for valuing health goods.     

Implementing QALYs in the Analysis of Air Pollution Regulations

In recent years, there has been growing interest in cost-effectiveness analysis for environmental regulations using quality-adjusted life years as the measure of effectiveness. This paper explores the implications of the QALY approach for measuring the impacts of air pollution regulations, with an example using the U.S. Environmental Protection Agency’s Heavy Duty Engine/Diesel Fuel regulations. The paper also examines the issues surrounding the potential use of QALY measures in cost-benefit analysis for air pollution regulations. Key findings are that, compared with a cost-benefit approach, the QALY framework gives more weight to reductions in incidence of chronic disease relative to reductions in premature mortality risk, especially when the mortality risk reductions occur in older populations. In addition, use of monetized QALYs in cost-benefit analysis is not recommended, due to fundamental differences in the theoretical grounding of the different measures. However, application of monetized QALYs based on age-specific willingness to pay (WTP) for mortality risk reductions gives very similar results to typical cost-benefit analysis for mortality risk reductions, as opposed to using values for QALYs based on non-age specific WTP. The paper concludes that in cases where mortality provide the majority of a regulation’s impacts, QALY based cost-effectiveness analysis and WTP based cost-benefit analysis may not differ in their conclusions. However, in cases where morbidity or non-health outcomes are significant, cost-effectiveness and cost-benefit analysis may result in different evaulations of the efficiency of the regulation.     

‘Adopt a Hypothetical Pup’: A Count Data Approach to the Valuation of Wildlife

The willingness to pay (WTP) for a coyote conservation program is estimated using a novel payment-vehicle, based on how many ‚problem’ coyotes respondents would be willing to sponsor for a year. This hypothetical scenario mimics an increasingly popular type of actual market. Data from a phone survey conducted in Prince Edward Island are analyzed using count data models that consider different processes explaining zero responses and the level of positive responses. This is particularly important in the case of coyotes, often regarded as an economic bad. Estimates of WTP per coyote per year around $18–$22 and annual WTP per contributor of about $46–$57 are obtained.      

The Value of Clean Air in China： Evidence from Beijing and Shanghai

We estimate the willingness to pay （WTP） of Beijing and Shanghai residents for improving the air quality of the two cities from their levels prior to the 2008 Beijing Olympic Games to the level achieved during the Olympics. The data are obtained from a contingent valuation study conducted through face-to-face interviews in June 2008 in Beijing and Shanghai prior to the Beijing Olympics, during which time there was intensive debate about Beijing＇s air quality. Residents in both cities are willing to pay more when they are more exposed to air pollution, when their disposable income increases, and when they have stronger beliefs that public opinion plays an important role in government policy making. Beijing residents are willing to pay more than Shanghai residents, due possibly to Beijing＇s poorer air quality. Overall, aggregate WTP for air quality improvement accounts for about 0.53% of the 2008 GDP in Beijing and 0.22% of the 2008 GDP in Shanghai.     

我国手机回收结构特征及其科技政策内涵分析——基于技术产品生命周期的视角

废旧手机回收构成电子废弃物回收政策研究的新课题。在我国,手机生命周期的相关企业中,手机维修商和二手手机商回收贡献突出,而手机厂商和手机拆解商贡献不足,形成了"橄榄型"结构特征。这种"橄榄型"结构凸显支撑我国废旧手机回收的科技政策乃至电子废弃物回收科技政策,应该区别于发达国家,应该节约资源与治理环境并重,应该重点促进旧手机等旧物回收再利用技术的创新和扩散。     

Willingness to pay for improved air quality in Sweden

The aim of the paper is to quantify individual willingness-to-pay measures of improved air quality in Sweden by using the Contingent Valuation Method (CVM). Such measures are important for policy makers when deciding about public investments and policy instruments in order to regulate environmental impacts, e.g. from road transportation and industry. The mean willingness to pay (WTP) for a 50% reduction of harmful substances where the respondents live and work was about 2000 SEK/year, which is of the same order of magnitude as earlier stated preference studies in Nordic countries. Most parameters in the econometric analysis had the expected sign. WTP was increasing in income, wealth and education; it was larger for men, members of environmental organizations, people living in big cities (which are on average more polluted), and people who own their house or apartment. It was lower for retired people. However, the additional WTP for people in big cities, although significantly higher than for other people, was lower than expected, indicating a possible insensitivity-to-scope effect.     

放松电信管制对日本移动通信市场发展的影响

本文分析了日本移动通信领域的管制改革及其对移动通信市场发展的影响。基于垄断竞争模型的分析表明,移动电话服务商的个数和移动电话服务的边际成本,是影响日本移动通信的需求和价格的关键因素。以移动通信市场自由化为目标的一系列管制改革,刺激了移动通信服务商的增加,降低了移动通信服务商的边际成本,从而促进日本移动电话通信市场的蓬勃发展。基于1991—1999年期间季度数据的经济计量模型,证实放松电信管制对移动通信服务的价格和需求量都有显著影响。此外,本文还推测了移动电话通信的需求曲线和价格弹性。     

External Costs of Aquaculture Production in West Virginia

Temperate hill-lands of the U.S.A. such as those in West Virginia are areas from which increasing output of farm-raised fish may be possible. However, the downstream economic impacts of current and projected future effluent as a result of aquaculture production have not been extensively studied. Using an externality framework and a combination of primary and secondary data, this study determines pollution prevention costs (PPC), and downstream pollution damage costs resulting from fish farm wastewater effluent measured as willingness to pay (WTP) for restoring water quality. PPC is estimated at $0.11 per kg of trout produced (which would add 6% to private production cost), and WTP is estimated at $0.49 per kg of trout produced (representing 25% of private production cost) at current production and price levels. This study shows that installation of filtration units is a low-cost (less than 6% of total cost) and an effective technology for controlling pollution at the source. Internalizing external costs (adding this 6% to private production costs) is one strategy that could contribute to sustainable growth of the aquaculture industry.