26 research outputs found

    PAYING FOR A PUBLIC GOOD IN MONEY OR TIME: IS THERE A FUNDAMENTAL DIFFERENCE? AN INVESTIGATION OF CONSUMERS' PREFERENCES FOR COMMUNITY-WIDE RECYCLING

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    This paper investigates consumers willingness to pay money (WTPM) and willingness to pay time (WTPT) for an improvement in a public good. Joint estimation of WTPM, WTPT, and the value of time, in the context of an increase in community-wide recycling, suggests that consumers have a higher money-equivalent WTP when they are directly involved in the provision of the public good, through their time effort. We conclude that the "payment currency" matters. This may have important implications for the design and promotion of public programs aimed at producing improved public good provision.Public Economics,

    An Application of Mixed Logit Estimation in the Analysis of Producers’ Stated Preferences

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    This paper analyzes Colorado Corn producers’ preferences over both private- and environmental public-good production system attributes. Current production practices are characterized by intensive water and chemical use, resulting in non-point source pollution to water bodies as well as soil erosion problems. Data from a stated preference survey are employed to analyze key attributes of experimentally configured irrigation systems, proposed as alternatives to current practices. Panel mixed logit estimations find positive preferences for profit, risk reduction, and, importantly, systems with less environmental impact in terms of nitrate leaching and soil erosion. The results also find presence of significant preference heterogeneity and a complementary relationship between the two environmental attributes. Analysis of this kind can be used by policy makers to predict behavioral responses associated with introduction of new technologies, or to assess welfare implications of agricultural policy changes and stricter environmental regulations.Agricultural production, profit-maximization, environment, mixed logit, stated preference, attribute part-worth, nitrate leaching, soil erosion, risk, Crop Production/Industries, C10, D62, Q12, Q15, Q51,

    Diagnosing Insensitivity to Scope in Contingent Valuation

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    Sensitivity to scope is considered a desirable property of contingent valuation studies and often treated as a necessary condition for validity. We first provide an overview of scope insensitivity explanations put forth in the environmental valuation literature. Then we analyze data from a contingent valuation survey eliciting willingness-to-pay to prevent oil spills of four different magnitudes in Arctic Norway. In the baseline analysis, the scope inference is ambiguous. There is only statistical difference in willingness to pay to avoid a very large versus small oil spill (NOK 1869 and NOK 1086, respectively). However, further explorations show that several confounding factors suggested in the literature influence the scope inference. The scope sensitivity improves when we control for subjective probabilities of amenity provision, exclude respondents based on the debriefing questions, take into consideration the sample sizes, and impose diminishing marginal utility. Overall, the analysis supports an emerging view in the contingent valuation literature suggesting that statistical scope insensitivity is not a sufficient reason for deeming a study invalid.publishedVersio

    Acceptance of wind power development and exposure – Not-in-anybody’s-backyard

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    Despite a large stated-preference (SP) literature on wind power externalities, few SP studies employ a case-control approach to examine whether people’s acceptance of new wind power developments and renewable energy initiatives increases or decreases with exposure. Furthermore, the existing studies are inconclusive on this issue. In a case-control discrete choice experiment, we measure the level of acceptance in terms of people’s willingness-to-accept (WTA) for having future land-based wind power developments in Norway; comparing exposed and non-exposed people’s WTA. We find that exposure lowers acceptance. Furthermore, exposed people are also unwilling to pay as much to increase general domestic renewable energy production (from all sources) as non-exposed people, and thus have lower acceptance for such renewable energy policy initiatives. After testing for type of exposure, we argue that the inconclusiveness in the literature of how exposure affects acceptance of wind power developments could be due to the fact that impacts considered differ somewhat across studies.publishedVersio

    Acceptance of wind power development and exposure – Not-in-anybody’s-backyard

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    Despite a large stated-preference (SP) literature on wind power externalities, few SP studies employ a case-control approach to examine whether people’s acceptance of new wind power developments and renewable energy initiatives increases or decreases with exposure. Furthermore, the existing studies are inconclusive on this issue. In a case-control discrete choice experiment, we measure the level of acceptance in terms of people’s willingness-to-accept (WTA) for having future land-based wind power developments in Norway; comparing exposed and non-exposed people’s WTA. We find that exposure lowers acceptance. Furthermore, exposed people are also unwilling to pay as much to increase general domestic renewable energy production (from all sources) as non-exposed people, and thus have lower acceptance for such renewable energy policy initiatives. After testing for type of exposure, we argue that the inconclusiveness in the literature of how exposure affects acceptance of wind power developments could be due to the fact that impacts considered differ somewhat across studies.publishedVersio

    When a good is a bad (or a bad is a good) - analysis of data from an ambiguous nonmarket valuation setting

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    This paper analyses data from a contingent valuation experiment carried out in a context with large degree of preference heterogeneity and valuation ambiguity. Despite this challenge, by implementing estimation of an unrestricted valuation function on pooled data from two elicitation formats, utilizing all preference information available from the survey, we are able to estimate welfare measures with an acceptable degree of statistical confidence. It turns out that an offshore wind farm, a priori believed to constitute a bad that people would be willing to pay to avoid, instead was a good that people would be willing to forego under compensation. This was true on average but not for all study participants. Two key determinants of preferences were spatial proximity to the proposed wind farm and perceptions of the visual impacts of wind turbines. Individuals who would be near and thought wind turbines are “ugly” had a mean willingness to pay to avoid the wind farm of about 508perhouseholdperyear.Incontrast,thosewhowouldbefarawayandperceivedwindturbinestobebeautifulhadanegativemeanwillingnesstopaytoavoidthewindfarmofabout508 per household per year. In contrast, those who would be far away and perceived wind turbines to be “beautiful” had a negative mean willingness to pay to avoid the wind farm of about −595 per household per year.publishedVersio

    To tell or not to tell: Preference elicitation with and without emphasis on scientific uncertainty

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    Decisions about the optimal use of coastal and marine resources must be taken under high uncertainty about environmental impacts and may conflict with public perception of the risk associated with current blue growth initiatives. In a discrete choice experiment conducted in valuation workshops in five communities in Arctic Norway, we examine public preferences for various aquaculture expansion paths. Respondents prefer a smaller expansion in terms of the number of aquaculture sites compared to the planned expansion. Emphasizing scientific uncertainty regarding the negative environmental impacts of aquaculture leads to lower resistance against the planned expansion

    Attribute non-attendance in environmental discrete choice experiments: The impact of including an employment attribute

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    This paper utilizes data from a split-sample discrete choice experiment to investigate the impact of including an employment attribute on stated preferences for protecting the coastal zone of Arctic Norway. The econometric analysis investigates how its inclusion affects attention to other choice experiment dimensions, and how welfare measures vary between the two subsamples and across models that control for attribute non-attendance versus models that do not. We find that the employment attribute has a relatively high attendance rate and that its inclusion does not appear to decrease attention to other attributes of interest. The impact of the added attribute on the part-worth estimates for environmental attributes is mixed. However, similar to prior research, we find that controlling for attribute non-attendance tends to yield lower welfare estimates. Lastly, our analysis indicates somewhat higher attention to the cost attribute than many previous studies.acceptedVersio
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