Can Stated Preference Valuations Help Improve Environmental Decision Making?

Environmental Economics and Policy,

TESTING FOR CHANGES IN THE PRICE ELASTICITY OF RESIDENTIAL ELECTRICITY DEMAND

The demand for electricity in the residential sector is estimated to have become less elastic for the recent period of rising real prices as compared to earlier periods of stable or falling real price. Several possible reasons for this are investigated and we conclude that demand appears to be asymmetric with respect to price in both the short and long run. We then examine whether or not this is an important factor for forecast accuracy and public policy.Demand and Price Analysis, Resource /Energy Economics and Policy,

Contingent Valuation, Hypothetical Bias, and Experimental Economics

Although the contingent valuation method has been widely used to value a diverse array of nonmarket environmental and natural resource commodities, recent empirical evidence suggests it may not accurately estimate real economic values. The hypothetical nature of environmental valuation surveys typically results in responses that are significantly greater than actual payments. Economists have had mixed success in developing techniques designed to control for this "hypothetical bias." This paper highlights the role of experimental economics in addressing hypothetical bias, and identifies a gap in the existing literature by focusing on the underlying causes of this bias. Most of the calibration techniques used today lack a theoretical justification, and therefore these procedures need to be used with caution. We argue that future experimental research should investigate the reasons hypothetical bias persists. A better understanding of the causes should enhance the effectiveness of calibration techniques.Environmental Economics and Policy,

A Comparison of Induced Value and Home-Grown Value Experiments to Test for Hypothetical Bias in Contingent Valuation

This study tests the hypothesis that hypothetical bias may not be related to value elicitation; rather it may be a value formation problem. When participants are asked to indicate their willingness to pay for an induced value good, we find no evidence of hypothetical bias for three different commodity types (public good, private good, and publicly provided private good). However, when these same subjects are asked to value homegrown goods with no pre-assigned induced value using the same elicitation mechanism, hypothetical values are roughly double actual payments in all three cases. These results support the hypothesis that the process of forming values in a homegrown setting may be a key contributor to hypothetical bias.contingent valuation, hypothetical bias, experiments, induced values, home-grown values

PROTEST BIDDERS IN CONTINGENT VALUATION

Protest bids are often excluded during analysis of contingent valuation method data. It is suggested that this procedure might introduce significant bias. Protest bids are often registered by respondents who may actually place a higher- or lower-than-average value on the commodity in question but refuse to pay on the basis of ethical or other reasons. Exclusion of protest bids may therefore bias willingness to pay (WTP) results, but the direction of bias is indeterminate a priori.Resource /Energy Economics and Policy,

CONJOINT ANALYSIS OF GROUNDWATER PROTECTION PROGRAMS

Three conjoint models-a traditional ratings model, a ratings difference specification, and a binary response model-were used to value groundwater protection program alternatives. The last, which is virtually identical to a dichotomous choice contingent valuation specification, produced the smallest value estimates. This suggests that the conjoint model is very sensitive to model specifications and that traditional conjoint models may overestimate economic value because many respondents are not in the market for the commodity being valued.Resource /Energy Economics and Policy,

Electricity deregulation and the valuation of visibility loss in wilderness areas: A research note.

Visibility in most wilderness areas in the northeastern United States has declined substantially since the 1970s. As noted by Hill et al. (2000), despite the 1977 Clean Air Act and subsequent amendments, human induced smog conditions are becoming increasingly worse. Average visibility in class I airsheds, such as the Great Gulf Wilderness in New Hampshire’s White Mountains, is now about one-third of natural conditions. A particular concern is that deregulation of electricity production could result in further degradation because consumers may switch to lower cost fossil fuel generation (Harper 2000). To the extent that this system reduces electricity costs, it may also affect firm location decisions (Halstead and Deller 1997). Yet, little is known about the extent to which consumers are likely to make tradeoffs between electric bills and reduced visibility in nearby wilderness areas. This applied research uses a contingent valuation approach in an empirical case study of consumers’ tradeoffs between cheaper electric bills and reduced visibility in New Hampshire’s White Mountains. We also examine some of the problems associated with uncertainty with this type of analysis; that is, how confident respondents are in their answers to the valuation questions. Finally, policy implications of decreased visibility due to electricity deregulation are discussed

TINKERING WITH VALUATION ESTIMATES: IS THERE A FUTURE FOR WILLINGNESS TO ACCEPT MEASURES?

This paper examines various methods proposed in the literature to calibrate welfare measures, especially willingness to accept and willingness to pay, derived from contingent valuation surveys. Through simulation and a case study, we hope to provide guidance for empirical welfare measurement in response to the theoretical dispute regarding WTA/WTP disparities.Resource /Energy Economics and Policy,

Cytotoxic agent containment kit

A cytotoxic agent containment kit is disclosed which has a top enclosure member and bottom enclosure member that are hingedly connected much like a brief case. The bottom enclosure member has a sealable, nonpermeable container for drugs and another for holding waste such as empty drug containers and used hypodermic needles. A removable tray is provided which acts as a work surface for preparing the drugs for administration. The contents of the kit including the tray and containers can be disposed of after use, and the outer case reused. The kit's nonpermeable construction helps insure that persons handling it will not be accidentally exposed to the cytotoxic agents that it contains.Board of Regents, University of Texas Syste

A comparison of conjunctival bacteria in contact lens wearers and noncontact lens wearers

The lower conjunctival fornix of 241 contact lens wearers and nonwearers were sampled then cultured to determine the presence or lack of bateria. Several other factors were also investigated: the duration of contact lens wear, the hours/day of wear, the type or types of solutions used, lens hygiene, the age, and the sex of the subjects. A Chi Squared Test was used as the criteria of difference. The incidence of bacteria for contact lens wearers did not differ from nonwearers. Incidence was not influenced by any of the other factors either