The Road Less Traveled: Revealed Preference and Using the Travel Cost Model to Value Environmental Changes

Environmental Economics and Policy,

HURDLE COUNT-DATA MODELS IN RECREATION DEMAND ANALYSIS

When a sample of recreators is drawn from the general population using a survey, many in the sample will not recreate at a recreation site of interest. This study focuses on nonparticipation in recreation demand modeling and the use of modified count-data models. We clarify the meaning of the single-hurdle Poisson (SHP) model and derive the double-hurdle Poisson (DHP) model. The latter is contrasted with the SHP and we show the DHP is consistent with Johnson and Kotz's zero-modified Poisson model.Resource /Energy Economics and Policy,

PERCEIVED HAZARD AND PRODUCT CHOICE: AN APPLICATION TO RECREATIONAL SITE CHOICE

This study improves upon the standard "dummy variable" approach to modeling fish consumption advisories by jointly estimating a "perceived hazard" model and a site choice model. The perceived hazard model overcomes the shortcomings of the dummy variable model, namely that all anglers respond equally to advisories and that all anglers know of and believe the advisories. We find that anglers' perceived hazards associated with consumption advisories do affect product (recreational site) choice. Anglers' perceptions also affect welfare measures, where the benefits of contaminant removal follow a more reasonable pattern than that of the dummy variable approach. The joint perceived hazard/product choice model is applicable to a wide variety of risky choices with which consumers are faced.Resource /Energy Economics and Policy,

AGRICULTURAL AND RECREATIONAL IMPACTS FROM SURFACE FLOW CHANGES DUE TO GOLD MINING OPERATIONS

Nevada ranks third in the world in gold production. In order to operate the massive open pit gold mines, the State of Nevada granted mining companies a temporary permit to pump groundwater from near the open pits and dispose of it. Certain instream flows have nearly doubled relative to average historical flows in recent years. Following pit closure, surface flows will likely decline from historical levels. This study measures the impacts of these changing water supplies on downstream agricultural and recreational users. We argue that the creation of temporary changes in water rights for the downstream users would likely mitigate future losses both groups are expected to experience.Resource /Energy Economics and Policy,

OPTION WEALTH AND BEQUEST VALUES: THE VALUE OF PROTECTING FUTURE GENERATIONS FROM THE HEALTH RISKS OF NUCLEAR WASTE STORAGE

We devise a simple model of intergenerational altruism under uncertainty. We present an estimable form of the model that relies on a few, plausible, assumptions. We apply the model to data collected in a survey of Southern Nevadans concerning the proposed Yucca Mountain Nuclear Waste Repository in Nye County, NV. We find strong evidence of a bequest motive. Approximately one third of the option wealth lost by households near the repository can be attributed to costs to future generations.Resource /Energy Economics and Policy,

Do Monetary Incentives and Chained Questions Affect the Validity of Risk Estimates Elicited via the Exchangeability Method? An Experimental Investigation

Using a laboratory experiment, we investigate the validity of stated risks elicited via the Exchangeability Method (EM) by defining a valuation method based on de Finetti’s notion of coherence. The reliability of risk estimates elicited through the EM has been theoretically questioned because the chained structure of the game, in which each question depends on the respondent’s answer to the previous one, is thought to potentially undermine the incentive compatibility of the elicitation mechanism even when real monetary incentives are provided. Our results suggest that superiority of real monetary incentives is not evident when people are presented with chained experimental designlab experiment, risk elicitation, exchangeability, validity, pesticide residue

Arsenic Consumption and Health Risk Perceptions in a Rural Western U.S. Area

Churchill County, Nevada had approximately 23,000 residents, with an estimated 13,500 who relied on private wells for water supply in 2002. This study examined exposure to arsenic in water supplies among residents with private domestic wells and factors related to householder choice to consume tap water. It compared opinions and concerns about water quality with consumption habits and observed concentrations from tap water samples. The results from 351 households indicated that a majority (75%) of respondents consumed tap water and that a minority (38%) applied treatment. Approximately 66% of those who consumed tap water were exposed to concentrations of arsenic that exceeded 10 ppb. Water consumption was related to application of treatment. Among 98 respondents who were not at all concerned about the health effects of aqueous arsenic, 59 (60%) reported consuming tap water with concentrations of arsenic exceeding 10 ppb. Conversely, among 86 respondents who were highly concerned about arsenic, 33 (37%) consumed tap water with concentrations of arsenic exceeding 10 ppb. Results from a national sampling effort showed that 620/5304 (11.7%) of private wells sampled had arsenic concentrations above 10 ppb. The paradox of awareness of arsenic in water supplies coupled with consumption of aqueous arsenic in concentrations of >10 ppb may be common in other parts of the nation. Enhanced educational efforts, especially related to tap water sampling and explanations of efficacy of available treatment, may be a useful means of reducing exposure through private water supplies.Health Economics and Policy, Resource /Energy Economics and Policy,

Risk Perception and Altruistic Averting Behavior: Removing Arsenic in Drinking Water

Self protection and altruism are crucial behavioral factors in determining the effectiveness of public policies aimed to improve human health from environmental hazards. This paper examined people’s arsenic mortality risk perception in the drinking water for themselves and their children using the Bayesian learning framework. A two-stage structural model within the random utility framework was developed to model the household’s risk averting behavior with respect to arsenic-related mortality risk. The empirical results indicate that parents engage in a form of mixed altruism. Parents are willing to spend more to make a trade-off between their risk and their children’s risk.Resource /Energy Economics and Policy, Risk and Uncertainty,

Real Monetary Incentives and Chained Questions: An Experimental Study Investigating the Validity of Risk Estimates Elicited via Exchangeability Method

Risk and Uncertainty,

Health benefits and uncertainty: an experimental analysis of the effects of risk presentation on auction bids for a healthful product

Experimental subjects receive a different presentation of a food product's potential health risk reductions if eaten regularly. They are then asked to bid for the product. Results suggest that the bids vary across the groups that receive differing risk information.