Farmers as Producers of Clean Water: Getting Incentive Payments Right and Encouraging Farmer Participation

This research involved a field experiment using watershed payments as an incentive for farmers to address agricultural non-point pollution (ANP). Objectives were to: (1) describe how payments were estimated for a field experiment; (2) explain why a team approach is needed for ANP; (3) discuss the essential elements used for recruitment of farmers into a field experiment setting; and (4) address whether or not farmers were motivated to participate and pursue ANP abatement. One year into the experiment, the results are encouraging. About one-half of farmers who attended meetings are participating. They own or operate approximately 41% of the agricultural land in the watershed. Farmer actions to date have included determining an allocation formula for the payment, requesting watershed wide sampling, and cost sharing of ANP abatement.field experiment, team approach, agricultural non-point pollution, performance-based incentives, Environmental Economics and Policy, Resource /Energy Economics and Policy,

Phosphorus Imbalances in the Chesapeake Bay Watershed: Can Forestland and Manure Processing Facilities Be the Answers?

A mixed-integer linear programming model was formulated to minimize the cost of transport and processing of excess manure in the Chesapeake Bay watershed. The results showed that primarily poultry manure was moved out of surplus counties for land application or processing. In the base model, annual cost was more than $350 million, with the bulk of the cost arising from construction of energy facilities for poultry manure. Forestland application of poultry manure had the lowest average cost, and more forestland than agricultural land was used for manure application. The lowest cost scenario was$127 million annually when constraints were removed to expand manure application on agricultural land and allow unlimited construction of composting facilities. Such a low-cost solution could not realistically be implemented without further development of markets for compost.mathematical programming, water quality, animal manure, composting, Environmental Economics and Policy, Resource /Energy Economics and Policy,

Protest Adjustments in the Valuation of Watershed Restoration Using Payment Card Data

When using a willingness-to-pay (WTP) format in contingent valuation (CV) to value water-shed restoration, respondents may protest by questioning why they should pay to clean up a pollution problem that someone else created. Using a sample selection interval data model based on Bhat (1994) and Brox, Kumar, and Stollery (2003), we found that the decision to protest and WTP values were correlated. Protest sample selection bias resulted in a 300 percent overestimate of mean WTP per respondent. Using different ad hoc treatments of protesters, protest bias resulted in moderate effects (-10 percent to +14 percent) after controlling for sample selection bias.contingent valuation, protest bias, watershed restoration, sample selection, grouped Tobit, Resource /Energy Economics and Policy,

TOTAL ECONOMIC VALUATION OF STREAM RESTORATION USING INTERNET AND MAIL SURVEYS

The economic value of restoring Deckers Creek in Monongalia and Preston Counties of West Virginia was determined from mail, internet and personal interview surveys. Multi-attribute, choice experiments were conducted and nested logit models were estimated to derive the economic values of full restoration for three attributes of this creek: aquatic life, swimming, and scenic quality. The relative economic values of attributes were: aquatic life > scenic quality ~ swimming. These economic values imply that respondents had the highest value for aquatic life when fully restoring Deckers Creek to a sustainable fishery rather than "put and take" fishery that can not sustain a fish population (defined as moderate restoration for aquatic life). The consumer surplus estimates for full restoration of all three attributes ranged between $12 and$16 per month per household. Potential stream users (anglers) had the largest consumer surplus gain from restoration while non-angler respondents had the lowest. When the consumer surplus estimates were aggregated up to the entire watershed population, the benefit from restoration of Deckers Creek was estimated to be about $1.9 million annually. This benefit does not account for any economic values from partial stream restoration. Based upon log likelihood tests of the nested logit models, two sub-samples of the survey population (the general population and stream users) were found to be from the same population. Thus, restoration choices by stream users may be representative of the watershed population, although the sample size of stream users was small in this study.Resource /Energy Economics and Policy,

Willingness to Pay for Wind versus Natural Gas Generation of Electricity

In 2009, West Virginia enacted an Alternative and Renewable Portfolio Act (APRA) to broaden its energy use for electricity beyond coal. A choice experiment survey was conducted to assess West Virginians’ willingness to pay (WTP) for 10 percent of electricity generated from wind energy versus natural gas. Results showed that residential consumers preferred electricity generated from wind, with annual per-capita WTP averaging from $19.25 to$26.75. Given the subsequent repeal of the APRA in 2015, we propose implementation of a voluntary green pricing program as an alternative policy to increase the share of renewable energy in West Virginia\u27s energy portfolio

Optimal dynamic electricity consumption function estimation: an institutional experimental evidence from Guangzhou, China (1949-2016)

This research demonstrates from a dynamic optimal perspective that electricity consumption for a metropolitan area is a function of economic output, electricity consumption habits, and electricity demand management reform. The empirical results include: (1) an unidirectional Granger causality exists linking economic output to electricity consumption; (2) given electricity consumption habits under the context of the electricity demand management reform, an economic output increase of 1% results in the increase of electricity consumption by 0.22%, and (3), after demand management has been implemented, economic output continues to increase electricity consumption, but at a lower rate than prior to reform. These empirical results imply that the ‘conservation hypothesis’ is upheld over the long-run at the regional level in Guangzhou from 1949 to 2016

What Is Historic Integrity Worth to the General Public? Evidence from a Proposed Relocation of a West Virginia Agricultural Mill

While historians believe that preserving a historic building in its original location is important to maintain its historic integrity, the general publicÂ’s opinion is unknown. Survey data were gathered from local residents regarding a proposed relocation of a historic mill in rural West Virginia. Only a minority of the sample population supported preserving the mill at its original location. Willingness to pay for preservation was estimated at $8.45 for a one-time donation for the sample and$2.29 after adjusting for non-respondents using characteristics of the local population.contingent valuation, historic preservation, Tobit model, willingness to pay, Demand and Price Analysis, Resource /Energy Economics and Policy,

Air Quality and Asthma Hospitalization: Evidence of PM2.5 Concentrations in Pennsylvania Counties

According to the World Health Organization, 235 million people around the world currently suffer from asthma, which includes approximately 25 million in the United States. There is substantial epidemiological evidence indicating linkages between outdoor air pollution and asthma symptoms, more specifically between concentrations of particulate matter and asthma. Using county level data for 2001-2014, a spatial panel framework is imposed based upon prevailing wind patterns to investigate the direct and indirect impacts of PM2.5 concentration levels on asthma hospitalization in Pennsylvania. This model controls for population density, precipitation, smoking rate, and population demographic variables. Results show that PM2.5 concentrations as measured at the county level have positive direct and indirect effects on asthma hospitalization. A one-unit increase in PM2.5 in one Pennsylvania county will add, on average $1.29M ($754,656 direct and $539,040 indirect) to total annual asthma hospitalization costs with the state of Pennsylvania. This study highlights the need for realistic and accurate impact analyses of ambient air pollution on asthma that reflects the impacts on neighboring regions as well. In order to capture the spillover effects of health- related impacts from PM2.5 pollution, a wind direction algorithm to identify appropriate neighbors is important

Charges for Water and Access: What Explains the Differences in West Virginia Municipalities?

Applying linear and log-log functional forms plus spatial econometric analyses to a dataset of 125 municipal water utilities, we investigate the determinants of charges for water use and minimum monthly access to water across West Virginia municipalities in 2014. Water charges models are consistent with the theory of water cost determination as water source, debt, and economies of size plus scale influence what household consumers pay for water. Based on model results, groundwater use by utilities lowers water charges and is estimated to save household customers in West Virginia over $3.6 million annually. West Virginia households typically pay far below the OECD standard of 3 to 5% of household income for municipal water, which may explain why socioeconomic factors do not influence minimum charges for access

Differences among Watershed Sub-Populations in Willingness to Pay for Water Quality Improvements: The Impact of TMDL Development

The Opequon watershed is located in northern Virginia (VA) and the eastern panhandle of West Virginia (WV). In both states, Opequon Creek is classified as impaired based on violations of bacteria, benthic and biologic standards. Both VA and WV are using Total Maximum Daily Load (TMDL) plans to improve water quality within Opequon Creek. However, these TMDL plans are at different stages with VA being completed and WV still in progress. As part of the TMDL process in VA, this research is based on a contingent valuation survey which was developed to measure the expected monetary benefits of TMDL implementation throughout the Opequon watershed. On the basis of log-likelihood tests of grouped tobit models to explain willingness-to-pay (WTP) for watershed clean-up, VA, WV, and VA riparian landowner respondents were found to consist of different populations. Riparian landowners had the highest median annual WTP at $64, VA respondents the next highest ($49), and WV the lowest ($32). These medians were found to be statistically different from each other. When valuing out-of-state clean-up, however, VA and WV respondents were found to be similar populations with a one-time median WTP of$28. Results show that the TMDL process did impact VA respondent WTP for in-state clean-up.Resource /Energy Economics and Policy,