Benefit Transfer: Choice Experiment Results

Benefit transfer entails using estimates of non-market values derived at one site as approximations to benefits at other sites. The method finds favour because it can be applied quickly and cheaply, however the validity of benefit transfer is frequently questioned. Published studies generally indicate that errors from the approach can be extremely large and could result in significant resource misallocations. Assessing the validity of benefit transfer is complicated by differences in the nature of study and policy sites, the changes being valued, valuation methods, time of study, availability of substitutes and complements, and demographic, social and cultural differences. A choice experiment was used to evaluate the transferability of benefit estimates for identical goods between two different populations. The study design allowed most of the confounding factors to be controlled, so provides a strong test of benefit transfer validity. Several different tests were applied to evaluate benefit transfer validity, with conflicting results. The paper investigates the merits of the alternative tests and concludes that utility functions were different for the two populations.Choice model, Choice experiment, Benefit transfer, Mitigation, Agricultural and Food Policy, Environmental Economics and Policy, Financial Economics, Land Economics/Use, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

Extra-market values and water management in New Zealand

Efficient water management requires information on the magnitudes of all values associated with water volumes and quality, both in-situ and in extractive uses. This paper reviews and summarises New Zealand research into extra-market values placed on water. Studies have addressed issues as diverse as maintenance of ground water and instream flows, the value of recreational activities, and the quality of household water supplies. Results indicate that people place high values on avoiding further degradation of the natural environment, and in-situ values can have a significant role in water allocation efficiency despite high consumptive values of water.Environmental Economics and Policy, Resource /Energy Economics and Policy,

The Value of Recreational Inshore Marine Fishing

The relative values of New Zealand commercial and recreational marine fishing are unknown. Value transfer is applied to assess the likely value of inshore marine recreational fishing. The few relevant studies available report widely differing estimates of value. However, there is sufficient evidence to indicate that the value of recreational fishing is of the same order of magnitude as commercial fishing.Value transfer, recreational fishing, Environmental Economics and Policy,

Dichotomous choice contingent valuation probability distributions

Parametric distributions applied to dichotomous choice contingent valuation data invoke assumptions about the distribution of willingness to pay that may contravene economic theory. This article develops and applies distributions that allow the shape of bid distributions to vary. Alternative distributions provide little, if any, improvement in statistical fit from commonly used distributions. While median willingness to pay is largely invariant to distribution, estimates of mean consumer surplus diverge widely. Sensitivity analysis to determine benefit measure response to distributional assumptions is essential to prevent erroneous policy advice from applied dichotomous choice research.Resource /Energy Economics and Policy,

New Zealand freshwater management and agricultural impacts

In New Zealand, it is increasingly recognised, including by government, that water resource allocation and water quality are issues of national importance. Agriculture is frequently portrayed by public media as a major user of water and a major contributor to worsening water quality. We outline the water management systems in New Zealand, and the use of water by agriculture. Official reports on agriculture’s impact on New Zealand water availability and quality are summarised. We report how the New Zealand public perceive water, its management, and the roles of agriculture in water issues. Data from a nationwide mail survey were analysed to determine how New Zealanders assess the state of New Zealand lakes, rivers and streams, and aquifers, the performance of three agencies responsible for management of freshwater resources, and willingness to fund stream enhancement. We provide brief explanations for the failures of water resource management in New Zealand and report on options, including community-based responses that might address some of the mounting public, scientific, and government concerns about trends in water quantity and quality. A willingness to pay proposition, concerning riparian areas, included in the nationwide survey provides some evidence that the public are willing to pay for improved waterway management. Relevant non-market valuation studies also indicate that the public places considerable value on preservation values of water in New Zealand.agriculture, environmental economics, perceptions survey, water allocation, water quality, Resource /Energy Economics and Policy,

Evaluating the New Zealand Individual Transferable Quota Market for Fisheries Management

The New Zealand ITQ system is a dynamic institution that has had many refinements since its inception more than 15 years ago. Nonetheless, the basic tenets of the system - setting a total allowable catch and leaving the market to determine the most profitable allocation of fishing effort - have remained intact. This paper assesses the New Zealand system to identify areas of success and/or possible improvement or expansion within it. The reasons for doing so are to highlight beneficial features and to identify features of the New Zealand ITQ system that are relevant to other potential tradable permit markets. Beneficial features include simple standardized rules for quota definition and trading across species and areas; very few restrictions on quota trading and holding; relative stability in the rules over time; and low levels of government involvement in the trading process. We find evidence that supports the assertion that fishers behave in a reasonably rational fashion and that the markets are relatively efficient. We do not find major changes in participation in these fisheries as a result of the system. We find evidence that suggests that the ITQ system is improving the profitability of fisheries in New Zealand. In general the evidence thus far suggests that the market is operating in a reasonably efficient manner and is providing significant economic gains. These factors suggest that New Zealand would want to have non-economic justifications for any significant changes to the system.

Passive and active seismic isolation for gravitational radiation detectors and other instruments

Some new passive and active methods for reducing the effects of seismic disturbances on suspended masses are described, with special reference to gravitational radiation detectors in which differential horizontal motions of two or more suspended test masses are monitored. In these methods it is important to be able to determine horizontal seismic accelerations independent of tilts of the ground. Measurement of changes in inclination of the suspension wire of a test mass, relative to a direction defined by a reference arm of long period of oscillation, makes it possible to carry this out over the frequency range of interest for earth-based gravitational radiation detectors. The signal obtained can then be used to compensate for the effects of seismic disturbances on the test mass if necessary. Alternatively the signal corresponding to horizontal acceleration can be used to move the point from which the test mass is suspended in such a way as to reduce the effect of the seismic disturbance and also damp pendulum motions of the suspended test mass. Experimental work with an active anti-seismic system of this type is described

Fishing for Understanding: A Mixed Logit Model of Freshwater Angler Preferences

Freshwater fisheries management requires knowledge of not only the resource but angler preferences and the extent to which preferences vary. This paper reports results from an internet-based stated preference survey of anglers in the North Canterbury region. Discrete choice models are used to investigate how the quality of fishery attributes impact anglers’ selection of fishing sites. The models reveal significant preference heterogeneity between anglers for particular fishing site attributes. Furthermore, anglers’ preference intensities for identical attributes vary between sites. Consequently, efficient allocation of resources entails spatial and social components.discrete choice analysis, latent class, mixed logit, angler heterogeneity, New Zealand recreational trout fisheries, Agricultural and Food Policy, Environmental Economics and Policy, Research Methods/ Statistical Methods,

Priorities for, and preferred approaches to, management of New Zealand fresh waters

Since 2000 six standardised biennial public surveys of the state of the New Zealand environment have been undertaken. A fresh water case study was included in the 2010 postal survey and in an electronic survey. Desirable futures for New Zealand's fresh water resources, sources of damage to freshwater, preferred management approaches, and views about charges for commercial uses of water are reported. Respondents desire high quality water, are not prepared to trade that off for damaging economic gains, and support charges for commercial uses of water. We report public preferences for tools to manage water use.public perceptions, fresh water, New Zealand, economic instruments, management, Community/Rural/Urban Development, Environmental Economics and Policy, Health Economics and Policy, Land Economics/Use,

A novel approach for quality control system using sensor fusion of infrared and visual image processing for laser sealing of food containers

This paper presents a new mechatronic approach of using infrared thermography combined with image processing for the quality control of a laser sealing process for food containers. The suggested approach uses an on-line infrared system to assess the heat distribution within the container seal in order to guarantee the integrity of the process. Visual image processing is then used for quality assurance to guarantee optimum sealing. The results described in this paper show examples of the capability of the condition monitoring system to detect faults in the sealing process. The results found indicate that the suggested approach could form an effective quality control and assurance system