One and One-Half Bound Dichotomous Choice Contingent Valuation

To reduce the potential for response bias on the follow-up bid in multiple-bound discrete choice CVM questions while maintaining much of the efficiency gains of the multiple-bound approach, we introduce the one-and-one-half-bound (OOHB) approach. Despite the fact that the OOHB model uses less information than the double-bound (DB) approach, efficiency gains in moving from single-bound to OOHB capture a large portion of the gain associated with moving from single-bound to DB. In an analysis of survey data, our OOHB estimates demonstrated higher consistency with respect to the follow-up data than the DB estimates and were more efficient as well.contingent valuation, double-bound, one-and-one-half bound

A Contingent Valuation Study of Lost Passive Use Values Resulting From the Exxon Valdez Oil Spill

We report on the results of a large-scale contingent valuation (CV) study conducted after the Exxon Valdez oil spill to assess the harm caused by it. Among the issues considered are the design features of the CV survey, its administration to a national sample of U.S. households, estimation of household willingness to pay to prevent another Exxon Valdez type oil spill, and issues related to reliability and validity of the estimates obtained. Events influenced by the study’s release are also briefly discussed.contingent valuation, natural resource damage assessment

Opportunities for advances in climate change economics

There have been dramatic advances in understanding the physical science of climate change, facilitated by substantial and reliable research support. The social value of these advances depends on understanding their implications for society, an arena where research support has been more modest and research progress slower. Some advances have been made in understanding and formalizing climate-economy linkages, but knowledge gaps remain [e.g., as discussed in (1, 2)]. We outline three areas where we believe research progress on climate economics is both sorely needed, in light of policy relevance, and possible within the next few years given appropriate funding: (i) refining the social cost of carbon (SCC), (ii) improving understanding of the consequences of particular policies, and (iii) better understanding of the economic impacts and policy choices in developing economies

Controlling for Observed and Unobserved Site Characteristics in RUM Models of Recreation Demand

Recreation demand models are typically plagued by limited information on site attributes. If these unobserved site attributes are correlated with the observed characteristics and/or the travel cost variable, the resulting parameter estimates are likely to be biased. We develop a Bayesian approach to estimating a model that incorporates a full set of alternative-speci c constants, insulating the key travel cost parameter from the in uence of unobservables. The proposed posterior simulator can be used in the mixed logit framework in which some parameters of the conditional utility function are random. We apply the estimation procedures to data from the Iowa Lakes Project.Hatch Act and State of Iowa, the Iowa Department of Natural Resources and the U.S. Environmental Protection Agency's Science to Achieve Results (STAR) program.Grant R830818.http://ajae.oxfordjournals.org/hb201

What Price Recreation in Finland?—A Contingent Valuation Study of Non-Market Benefits of Public Outdoor Recreation Areas

Basic services in Finnish national parks and state-owned recreation areas have traditionally been publicly financed and thus free of charge for users. Since the benefits of public recreation are not captured by market demand, government spending on recreation services must be motivated in some other way. Here, we elicit people’s willingness to pay (WTP) for services in the country’s state-owned parks to obtain an estimate of the value of outdoor recreation in monetary terms. A variant of the Tobit model is used in the econometric analysis to examine the WTP responses elicited by a payment card format. We also study who the current users of recreation services are in order to enable policymakers to anticipate the redistribution effects of a potential implementation of user fees. Finally, we discuss the motives for WTP, which reveal concerns such as equity and ability to pay that are relevant for planning public recreation in general and for the introduction of fees in particular

Prospects for geothermal commercialization in the chemical industry

A number of areas considered directly relevant to a particular chemical firm's decision to use or not to use geothermal energy for its commercial needs are emphasized. These areas include: current fuel uses and problems, and future fuel concerns; firm decision-making processes, including managerial and financing conventions; perceived commercial potential for geothermal energy in the industry and mechanisms for stimulating interest; the potential institutional framework for user involvement in geothermal development; and the role that government might most effectively play in stimulating user development. The results are based on extensive personal interviews with decision-makers in the industry. (MHR

Prospects for geothermal commercialization in the potato and onion industry

A number of areas considered directly relevant to a particular potato or onion processor's decision to use or not to use geothermal energy for its commercial needs are emphasized. These areas include: current fuel uses and problems, and future fuel concerns; firm decision-making processes, including managerial and financing conventions; perceived commercial potential for geothermal energy in the industry; the potential institutional framework for user involvement in geothermal development; and the role that government might most effectively play in stimulating user development. The results are based upon extensive personal interviews with decision-makers in the industry. (MHR

Prospects for geothermal commercialization in the lumber industry

A number of areas considered directly relevant to a particular lumber firm's decision to use or not to use geothermal energy for its commercial needs are emphasized. These areas include: current fuel uses and problems, and future fuel concerns; firm decision-making processes, including managerial and financing conventions; perceived commercial potential for geothermal energy in the industry; the potential institutional framework for user involvement in geothermal development; and the role that government might most effectively play in stimulating user development. The results are based upon extensive personal interviews with decision-makers in the industry. (MHR