Benefit Transfer: A Comparison of WTP for Air Quality between France and Germany

A contingent valuation study was carried out under similar conditions on two sites simultaneously: Strasbourg (France) and Kehl (Germany) in order to test the reliability of the benefit transfer method. On average, the air quality is approximately the same in the two cities. Using a transfer of the benefit function, we compared the direct estimated benefits from improved air quality with the transferred benefits in the same city. The originality of this test is that the valued good is the same in both cities, which means that the transfer is an intra-site transfer. However our findings show that the method of benefit transfer was not generally valid. Indeed inhabitants of Kehl declared a higher price for their state of health and air quality than inhabitants in Strasbourg. This result could be explained by a stronger sensitivity to environmental problems in Germany.     

Using Revealed Preferences to Infer Environmental Benefits:Evidence from Recreational Fishing Licenses

We develop and apply a new method for estimating the economic benefits of an environmental amenity. The method is based upon the notion of estimating the derived demand for a privately traded option to utilize an open access good. In particular, the demand for state fishing licenses is used to infer the benefits of recreational fishing. Using panel data on state fishing license sales and prices for the continental United States over a 15-year period, combined with data on substitute prices and demographic variables, a license demand function is estimated with instrumental variable procedures to allow for the potential endogeneity of administered prices. The econometric results lead to estimates of the benefits of a fishing license, and subsequently to the expected benefits of a recreational fishing day. In contrast with previous studies, which have utilized travel cost or hypothetical market methods, our approach provides estimates that are directly comparable across geographic areas. Our findings show substantial variation in the value of a recreational fishing day across geographic areas in the United States. This suggests that current practice of using benefits estimates from one part of the country in national or regional analyses may lead to substantial bias in benefits estimates.Financial support of this work was provided by Resources for the Future, the U.S. Environmental Protection Agency, and the Dean’s Research Fund, John F. Kennedy School of Government. The analysis benefitted from discussions with Andrew Metrick, Richard Newell, and Kerry Smith, and comments from participants at seminars at the National Bureau of Economic Research and Harvard University, and very helpful comments from two anonymous referees. The data set, which builds upon previous work by Wolf (1988), was assembled with the help of a series of research assistants, including: Rod Bender, Nancy Bilica, Alisha Bloom, Diane Cherry, Peter Condon, Andrew Hoffman, and Michael Susanto. The authors alone are responsible for any errors.     

National and International Benefit Transfer Testing with a Rigorous Test Procedure

Benefit transfer, as a mean to transfer values from existing monetary valuation studies to new policy sites, has been in use for many years. This paper aims to analyze the forecasting quality of benefit transfer by applying a rigoroust-test – also referred to as Accuracy-t-test – that takes into account testing errors which were made in previous surveys. Beside the analysis of national benefit transfers based on two German contingent valuation studies additional efforts were made to investigate into the validity and accuracy of international benefit transfer by considering two Norwegian studies that employed a similar survey design.     

Estimating the Supply of Environmental Benefits by Agriculture: A French Case Study

There has been an increasing public interest in promoting the supply of environmental benefits by agriculture. The Environmentally Sensitive Area scheme addresses this challenge by offering farmers voluntary agreements: entrants are compensated for complying with a package of prescribed farming practices designed to secure conservation goals. This paper emphasizes the uptake of agreements from two perspectives: (i) ex post, it considers why some eligible farmers join a proposed scheme and why some do not, (ii) ex ante, it discusses how non-eligible farmers would behave if they were proposed a well-defined scheme. Ex post perspective refers to farmers' actual behaviour which is observed by the environmental agency, whereas the ex ante perspective is related to their contingent one. A single economic model is derived to deal with both cases. Econometric results from a French case study with respect to wetland preservation are given. There is some consistency between the empirical results obtained in both cases, and to some extent it may be argued that contingent behaviour predicts the actual one.     

Provision Point Mechanisms and Field Validity Tests of Contingent Valuation

Past field validity tests of contingent valuation have relied on voluntary contribution mechanisms to elicit actual willingness to pay, and may overestimate hypothetical bias because of free riding in the actual contributions. This paper argues that provision point mechanisms are a preferred alternative for field validity tests of contingent valuation because they increase the proportion of demand revealed in cases in which public goods can be provided in a step function. The results of a contingent valuation validity study of participation in a green electricity pricing program that uses a provision point mechanism are reported, and hypothetical open-ended and dichotomous choice responses are compared to actual participation. Calibration of hypothetical responses is also explored.     

Construct Validity of Dichotomous and Polychotomous Choice Contingent Valuation Questions

In this note we conduct construct validity tests for dichotomous choice (DC) and polychotomous choice (PC) contingent valuation questions. Contrary to previous results, we find that DC and PC estimates of willingness to pay are theoretically valid, convergent valid, and similar in terms of statistical precision. Similar to previous results, PC respondents are less sensitive to information than DC respondents. We conclude that DC and PC valuation questions are construct valid for this study. Sequential PC valuation questions could be used in studies where obtaining information about the certainty or intensity of respondent preferences would be useful.     

Benefit Transfer in Europe: How Reliable Are Transfers between Countries?

The benefits for specific health impacts related to air and water quality were measured in simultaneous contingent valuation surveys conducted in five different European countries. Consistent inter-country differences in willingness to pay to avoid ill health episodes could not be explained by measurable differences in individual characteristics. International transfer of unit values resulted in an average transfer error of 38%. Accounting for measurable differences among countries in health status, income and other demographic measures, either through ad hoc adjustments to the transferred values or through value function transfer, did not improve transfer performance.     

海岸带地区环境资源经济价值的评估方法及实证分析

以大连市金石滩国家海洋公园为例,利用条件价值法,通过建立双边界二分式Logit模型,分别计算了居民和游客对改善和保护海岸带三种最重要环境资源(海水、沙滩、生物种群)的平均意愿支付,进而评估了金石滩国家海洋公园海岸带游憩资源的经济价值。结果显示:金石滩国家海洋公园的海水、沙滩和生物种群的经济价值分别为4.30亿元、3.92亿元和3.57亿元。最后指出:将这些信息纳入海岸带地区的综合管理成本效益分析,对于实现海岸带资源的可持续发展有重要意义。     

The Effect of Respondent Experience/Knowledge in the Elicitation of Contingent Values: An Investigation of Convergent Validity,Procedural Invariance and Reliability

Tests of convergent validity and procedural invariance were used to investigate whether individuals lacking direct experience with a commodity can provide valid responses to contingent-valuation questions eliciting ex post use values. Convergent validity between samples with and without experience was shown to hold for dichotomous-choice responses, but not for open-ended responses.     

Validity Tests of Benefit Transfer – Are We Performing the Wrong Tests?

The validity of environmental benefit transfer has been tested on numerous occasions assuming classical null hypothesis of equality. We argue against this assumption on the basis of theory, which clearly indicates that environmental benefits should be assumed to vary from context to context. We suggest the use of equivalence testing as a more appropriate and a clear compliment to the shortcomings of classical tests. Equivalence tests test the null hypothesis of difference between the original and transferred value estimates. Equivalence tests also combine the concepts of statistical significance and policy significance into one test, by defining an acceptable transfer error prior to the validity test. The results of a published study on validity of benefit transfer are reversed when subjected to an equivalence test.JEL classifications: Q26, C12     

Environmental Valuation – To Use or Not to Use? A Comparative Study of the United States and Europe

Valuation methods have been used for five main purposes in environmental decision-making. Cost–benefit analysis (CBA) of projects, CBA of new regulations, natural resource damage assessment, environmental costing, and environmental accounting. The relatively lower importance attached to economic efficiency in environmental decision-making in most European countries compared to the U.S.A., both legally and in practice, might account for our general finding that there are very few valuation studies in Europe which have served as a decisive basis for environmental policy and regulations. However, with EU's goal to establish environmentally adjusted national accounts and to apply CBA to environmental policy and regulations, time seems ripe for an increased use of valuation techniques in Europe.     

CVM评估生态服务价值的经济有效性和可靠性理论述评

意愿价值法(CVM)以新古典需求理论为基础,构造假想市场使生态服务价值的评估成为可能。但在应用中产生各种不符合经济理论预期的经济"异常"现象,使其有效性和可靠性受到广泛质疑。本文系统梳理了国际上经济、生态、社会等领域学者对"异常"现象的理论解释与争论,阐明了CVM的应用必须考虑评估对象的性质、所处区域的社会制度条件、市场化程度等因素,并指出:要在我国推广应用CVM,必须结合我国转型经济特殊阶段的社会条件对其有效性与可靠性进行深入的理论探讨。     

关中地区清洁能源供暖方案的经济环境效益研究

使用清洁能源进行供暖,对关中地区治污减霾、改善能源结构具有积极的意义,但关于关中地区清洁能源供暖经济效益的研究鲜有报道。根据关中地区的供暖需求,论文制定了煤改电、煤改气和浅层地热能三种清洁能源供暖方案,构建了办公建筑、商业建筑和居住建筑三类典型模型,计算了这三类模型使用煤改电、煤改气和浅层地热能方案的投资、成本、净现值、内部收益率及投资回收期。浅层地热能方案净现值最大,盈利总量最大,其次为煤改电方案,最后为煤改气方案。煤改电方案内部收益率最高,煤改气方案最低,但对比差额投资内部收益率,浅层地热能供暖方案优于煤改电方案,煤改电方案优于煤改气方案。根据模型参数,评价了不同方案的污染物排放量和节能性,浅层地热能方案节能性最优,煤改电次之,煤改气较差。论文旨在为推动陕西省清洁能源事业的科学、有序发展提供理论依据。     

The Environmental Supply of Farm Households: A Flexible Willingness to Accept Model

The purpose of the paper is toanalyse farmers' participation inenvironmental schemes, which are gaining agrowing importance within the Europeanagricultural policy. These schemes areimplemented through voluntary contracts thatpay farmers for the provision of environmentalservices. The microeconomic model that isdeveloped is a farm household model thatincorporates the producer and consumerbehaviour of the farmer to optimise hisenvironmental supply considering that theenvironmental service that he is supplying alsohas the characteristics of a public good. Defined as the difference between the profitloss in providing the environmental service andthe willingness to pay to consume this service,the household's willingness to accept (WTA)is compared with two flexible WTA measures thataccount for the technological flexibility ofthe environmental supply. Data come from asurvey of an agri-environmental schemeimplemented in the Walloon region of Belgiumsince 1995 and intended to protect the nestingof some endangered bird species. Econometricresults show that contingent valuation is areliable method to reveal the behaviours offarmers facing the invitation to participate inthis scheme. They also confirm that farmerbehaviour is also influenced by environmental preference.     

An Experimental Testing of Anchoring Effects in Discrete Choice Questions

This paper re-examines the openended/dichotomous choice question in the lab. It hasearlier been suggested that the dichotomous choiceformat suffers from anchoring and yea-saying.Comparing actual economic commitments for a privategood with a significant market value, we cannot rejectthe null hypothesis of equal WTP for the two formats.We conclude that problems with DC might be due toissues of how the survey is framed, not the DCquestion itself.     

Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias

Donation payment mechanisms are well suited forsome contingent valuation studies. In aneffort to better understand the discrepancythat has been consistently found between actualand hypothetical donations, we investigate anapproach to estimating actual willingness todonate using contingent donations with afollow-up question in which respondents ratethe level of certainty about their response tothe contingent donation question. The approachallows us to estimate the magnitude of thehypothetical bias and identify the respondentsresponsible for the bias. Identification ofthe respondents responsible for thehypothetical bias is the first step towarddeveloping an understanding of the causes andpossible remedies. In this study we find thatmost of the respondents (80%) to thecontingent donation question provide a responseconsistent with how we predict they wouldrespond in an actual donation situation.     

住区生态技术的环境贡献与经济成本关系研究

生态技术的选择是生态建筑设计的重要内容,目前我们的选择多主要以环境最优为目标,但在实践中,成本也是一个至关重要的约束条件,如何有效兼顾来自环境层面与经济层面的要求,成为生态技术选择面临的重要问题。在引入生态足迹的分析指标和借鉴经济学的成本—效益评价方法的基础上,论文试图通过评价生态技术生态效益与经济成本的综合性质,为生态技术的选择提供更为客观的依据。     

Stated Preferences, Real Behaviour and Anchoring: Some Empirical Evidence

We compare different contingent valuation question formats with each other and with observed behaviour for a non-monetary estimation task, the expected number of kilometers travelled by automobile. Open-ended questions, open-ended follow-up questions, dichotomous choice (DC) questions, and double-bound DC questions are included. The single and double-bound DC questions result in an estimated mean about twice as high as the actual value and the open-ended mean. The DC question overestimation seems to be due to an anchoring effect leading to yea-saying behaviour. Our results about the difference between DC questions and open-ended questions is consistent with the pattern observed in contingent valuations studies of the willingness to pay. Our results indicates that DC questions seem to be associated with a general overestimation problem that is present even for simple non-monetary estimation tasks.     

Meta-Analytic Benefit Transfer of Outdoor Recreation Economic Values: Testing Out-of-Sample Convergent Validity

A benefit transfer approach to recreationeconomic valuation using meta-analysis isexamined. Since the meta- regression modeltakes into account some of the study specificeffects on willingness to pay (WTP) estimates,benefit transfer using meta-analysis couldyield a valid WTP estimate of unstudiedrecreation resources. The convergent validityof the meta-analytic benefit transfer is testedusing out-of-sample original studies from theU.S. The analyses are performed usingpercentage difference, paired t-test,regression and correlation tests. The testsreveal mixed results on convergence betweenestimated WTP using meta-analytic benefittransfer function (BTF) and out-of-sampleoriginal WTP values. There is a fairly highpercentage difference between the estimated andoriginal WTP values (80–88%), and the meandifferences are statistically significant asshown by paired t-tests. However, correlationand regression results consistently showsignificant positive relationships betweennational BTF estimated and original WTP valuesindicating some level of convergence. Theresults show that the national BTF outperformthe regional BTF indicating a potential of thenational BTF for recreation benefit transferwhen a first best primary valuation study isnot affordable.     

Trading Taxes vs. Paying Taxes to Value and Finance Public Environmental Goods

The potential sensitivity of environmentalresource valuation to payment vehicles is ofinterest to researchers and decision-makersinvolved in estimating and applying thesenumbers. A conceptual model is developed whichprovides insight into how the different paymentvehicles of a special tax and a taxreallocation affects the willingness to pay(WTP) for environmental goods. Hypothesistesting using contingent valuation datasuggests WTP with a tax reallocation is higherthan WTP with a special tax for ground waterquality protection in Georgia and Maine, USA.Technical measurement and welfare analysisimplications and limitations of valuing andfinancing public environmental goods using taxrealloactions are discussed.