EVIDENCE ON THE ACCURACY OF EXPENDITURES REPORTED IN RECREATIONAL SURVEYS

This article discusses the results of four experiments to test the accuracy of recreational expenditures reported in survey relative to expenditures reported in dairies. We found few situations in which the reported expenditures in the surveys and diaries differ significantly. In general, we conclude that individuals are able to accurately report recreational expenditures in ex post mail surveys. Given the wide usage of survey expenditure data by economists, we find this results encouraging.Resource /Energy Economics and Policy,

A Comparison of Approaches to Mitigate Hypothetical Bias

We compare two approaches to mitigating hypothetical bias. The study design includes three treatments: an actual payment treatment, a contingent valuation (CV) treatment with a follow-up certainty question, and a CV treatment with a cheap talk script. Our results suggest that both the follow-up certainty treatment and the cheap talk treatment produce willingness-to-pay (WTP) estimates consistent with the actual payment treatment. However, the follow-up certainty treatment provides response distributions at all offer amounts that are statistically similar to the actual payment treatment, while the cheap talk treatment provides similar responses only at some offer amounts. Furthermore, the cheap talk treatment is effective only for inexperienced individuals. We conclude that the follow-up certainty approach is more consistent than the cheap talk approach for eliminating hypothetical bias.contingent valuation, hypothetical bias, follow-up certainty, cheap talk, nonmarket valuation, Environmental Economics and Policy, Public Economics, Research Methods/ Statistical Methods,

A Comparison of Methodologies for Valuing Decreased Health Effects from Wildfire Smoke

Wildfire seasons are becoming longer and more intense throughout the world, making it increasingly important to monetize the full damages caused by wildfires when analyzing various fire management policies. We estimate the economic costs of the health effects associated with exposure to wildfire smoke using a simple cost of illness approach and for the first time to our knowledge we estimate willingness-to-pay (WTP) for a decrease in symptom days from wildfire smoke using the contingent valuation method and the averting behavior method. Comparing estimates across all three common approaches for estimating the economic cost of exposure to an air pollutant is an important contribution to the literature. This study uses data from the largest wildfire in Los Angeles County’s modern history, the Station Fire of 2009. Our results show that a simple cost of illness estimate is about $3 per day of symptoms, the averting behavior method results in a WTP value of$43 or $94 to avoid one day of wildfire-smoke induced symptom days, depending on the model used, and the contingent valuation method results in a WTP estimate of$74 - $98 to avoid one day of wildfire-smoke induced symptom days, depending on model specification.averting behavior method, contingent valuation method, cost of illness, wildfire smoke, health, morbidity, Environmental Economics and Policy, Health Economics and Policy, Q,

Proactive or Reactive? Optimal Management of an Invasive Forest Pest in a Spatial Framework

This paper offers a preliminary investigation into the conditions under which it might be optimal to engage in proactive management of a non-timber forest resource in the presence of an invasive species whose spread is unaffected by management action. Proactive management is defined as treating an uninfected area in order to encourage healthy ecosystem function, given that the arrival of the invasive is inevitable. Inspired by the problem of white pine blister rust in the Rocky Mountain west, the model was solved under varying assumptions concerning the scale of management action, benefit and costs, the discount rate, and uncertainty of spread. Results showed that proactive strategies tended to be optimal when, ceteris paribus, a) more resources are available for treatment; b) the costs of treatment are rapidly increasing in forest health, or conversely, the benefits of healthy and unhealthy stands are relatively similar; and c) the discount rate is low. The introduction of uncertainty did not significantly affect the likelihood of a proactive management strategy being optimal, but did show that the conditional probabilities of infection play important role in the decision of which uninfected stand should be treated if a choice is available to the manager.Crop Production/Industries, Resource /Energy Economics and Policy,

Cost Shared Wildfire Risk Mitigation in Log Hill Mesa, Colorado: Survey Evidence on Participation and Willingness to Pay

Wildland–urban interface (WUI) homeowners who do not mitigate the wildfire risk on their properties impose a negative externality on society. To reduce the social costs of wildfire and incentivise homeowners to take action, cost sharing programs seek to reduce the barriers that impede wildfire risk mitigation. Using survey data from a WUI community in western Colorado and a two-stage decision framework, we examine residents’ willingness to participate in a cost sharing program for removing vegetation on their properties and the amount they are willing to contribute to the cost of that removal. Wefind that different factors motivate decisions about participation and about how much to pay. Willingness to participate correlates with both financial and non-monetary considerations, including informational barriers and wildfire risk perceptions, but not with concerns about effectiveness or visual impacts. Residents of properties with higher wildfire risk levels are less likely to participate in the cost sharing than those with lower levels of wildfire risk. We find widespread, positive willingness to pay for vegetation removal, with the amount associated negatively with property size and positively with respondent income. These results can inform the development of cost sharing programs to encourage wildfire risk mitigation on private property

Understanding the wicked nature of “unmanaged recreation” in Colorado’s Front Range

Unmanaged recreation presents a challenge to both researchers and managers of outdoor recreation in the United States because it is shrouded in uncertainty resulting from disagreement over the definition of the problem, the strategies for resolving the problem, and the outcomes of management. Incomplete knowledge about recreation visitors’ values and relationships with one another, other stakeholders, and the land further complicate the problem. Uncertainty and social complexity make the unmanaged recreation issue a wicked problem. We describe the wickedness inherent in unmanaged recreation and some of the implications of wickedness for addressing the problem for the Front Range of the Rocky Mountains in Colorado. Conclusions about the nature of the problem are based on a problem appraisal that included a literature review and interviews of key informants. Addressing wickedness calls for institutional changes that allow for and reward the use of trust building, inclusive communication, and genuinely collaborative processes

EVIDENCE ON THE ACCURACY OF EXPENDITURES REPORTED IN RECREATIONAL SURVEYS

This article discusses the results of four experiments to test the accuracy of recreational expenditures reported in survey relative to expenditures reported in dairies. We found few situations in which the reported expenditures in the surveys and diaries differ significantly. In general, we conclude that individuals are able to accurately report recreational expenditures in ex post mail surveys. Given the wide usage of survey expenditure data by economists, we find this results encouraging

Is Willingness to Pay for a Public Good Sensitive to the Elicitation Format?

This study uses actual payments toward the provision of a public good to compare dichotomous choice and payment card formats. The public good in question is the environmental improvement from wind generation of electric power. We find that willingness-to-pay estimates vary with the elicitation format. Based on this result, we argue that elicitation effects found in contingent valuation studies may not be due the hypothetical nature of decision-making, as has been suggested in previous studies.