Assessing community values for reducing agricultural emissions to improve water quality and protect coral health in the Great Barrier Reef

Key policy issues relating to protection of the Great Barrier Reef from pollutants generated by agriculture are to identify when measures to improve water quality generate benefits to society that outweigh the costs of reducing pollutants. The research reported in this paper makes a key contribution in several key ways. First, it uses the improved science understanding about the links between management changes and reef health to bring together the analysis of costs and benefits of marginal changes, helping to demonstrate the appropriate way of addressing policy questions relating to reef protection. Second, it uses the scientific relationships to frame a choice experiment to value the benefits of improved reef health, and links improvements explicitly to changes in ‘water quality units’. Third, the research demonstrates how protection values are consistent across a broader population, with some limited evidence of distance effects. Fourth, the information on marginal costs and benefits that are reported provide policy makers with key information to help improve management decisions. The results indicate that while there is potential for water quality improvements to generate net benefits, high cost water quality improvements are generally uneconomic. One implication for policy makers is that cost thresholds for key pollutants should be set to avoid more expensive water quality proposals being selectedEnvironmental Economics and Policy,

Testing for differences in benefit transfer values between state and regional frameworks

Policy makers are often interested in transferring non-market estimates of environmental values from a ‘source’ study to predict economic values at a ‘target’ site. While most applications of the benefit transfer process involve an opportunistic search for suitable source studies, there are some examples available of more systematic approaches to developing a framework of values for benefit transfer processes. A key issue in developing such a framework is to deal with adjustment factors, where value estimates might vary systematically according to the context of the trade-offs. Previous research has identified that large differences in scope, such as between national and regional contexts, do affect values and hence benefit transfer. The research reported in this paper indicates that such differences are not significant for smaller scope variations, such as between state and regional contexts. These results provide some promise that systematic databases for benefit transfer can be developed.benefit transfer, choice modelling, environmental valuation, Resource /Energy Economics and Policy,

Assessing national values to protect the health of the Great Barrier Reef

The aim of this study was to estimate the values to protect the health of the Great Barrier Reef (GBR) at the national level and to examine the effects of distance decay on valuation estimates. A split-sample choice-modelling experiment was conducted in six locations: a regional town within the GBR catchment area (Townsville); Brisbane, the state capital approximately 450 km from the southern limit of the GBR; and four other capital cities (Sydney, Melbourne, Adelaide and Perth) ranging from nearly 1,000 km to over 4,000 km from Brisbane. The results suggest that the average WTP across Australian households is $21.68 per household per annum for five years. There was some evidence of distance decay in values. Most decline occurred once outside the home state, and little further decline once away from the east coast. There was no evidence to suggest any difference in patterns of use and non-use values. The values of the potential future users were most influential in determining WTP estimates.Distance decay, Iconic resources, Choice modelling experiment, Environmental Economics and Policy, Q51, Q57,

Comparing responses from web and paper-based collection modes in a choice modelling experiment

Comparing responses from web and paper-based collection modes in a choice modelling experimentweb-based surveys, internet surveys, paper-based surveys, stated preference, collection mode, choice experiments, Environmental Economics and Policy,

Comparing Responses from Internet and Paper-Based Collection Methods in more Complex Stated Preference Environmental Valuation Surveys

Internet surveys are becoming an increasing popular survey collection method because collection times are quicker and survey costs are lower than other collection techniques. Many studies have been conducted overseas to compare the effects of survey collection modes with results still remaining inconsistent. Fewer studies have compared collection methods for nonmarket valuation surveys, particularly for the more complex stated preference, choice modelling surveys. In this study, a comparison of internet and paper-based surveys is made to determine if the results for overseas studies can be replicated in Australia. The valuation exercise was to elicit values from Brisbane respondents for future improvements in the environmental condition of the Great Barrier Reef. The results indicate that there were some socio-demographic and attitudinal differences between the two samples and the models developed to explain the influence on choice selection were also significantly different. However, no differences in value estimates were found in the final results; household willingness to pay for an improvement in the condition of the GBR was equivalent across collection methods.collection method, drop-off/pick-up, nonmarket valuation, choice modelling experiment

Developing a benefit transfer database for environmental values in Queensland

made in one situation to related circumstances. The benefit transfer process is typically reliant on the availability of a number of source studies which have appropriate levels of reliability and relevance to the issue of interest. However, the limited number of non-market valuation studies to draw on for source values currently limits the benefit transfer process. In this paper, an alternative approach to benefit transfer is outlined where a series of valuation studies were specifically performed to build a reference data base of values for benefit transfer purposes. The choice modelling technique was used to estimate community values for protecting soil, water and vegetation stocks in Queensland, Australia, where both state and regional populations were surveyed to generate value estimates in a variety of contexts. The results provide a database where government and natural resource management agencies can access generic estimates of environmental values.benefit transfer, environmental valuation, choice modelling, Environmental Economics and Policy,

Valuing options for reserve water in the Fitzroy Basin

Option values may be an important component of non-use values when development options for environmental assets are considered. These are values that the community might hold for maintaining options to make future choices about allocating resources. However, option values are very difficult to define, at both theoretical and practical levels, and there has been a retreat over the past decade to the more inclusive concept of option prices. In the present paper, estimates of option values are reported for retaining unallocated water in reserve rather than using it for current development. The use of option values rather than option prices is justified on the basis that the focus is on nonuse values, and demand and supply uncertainties have been minimised. These values have been assessed through a series of nine choice modelling surveys that have been conducted over a 3-year period in the Fitzroy River Basin in central Queensland. The results are then extrapolated to the case study areas within the basin to assess whether unallocated water should be held in reserve or used for development.choice modelling, environmental assets, supply response, Resource /Energy Economics and Policy,

Assessing community values for reducing agricultural emissions to improve water quality and protect coral health in the Great Barrier Reef

Key policy issues relating to protection of the Great Barrier Reef from pollutants generated by agriculture are to identify when measures to improve water quality generate benefits to society that outweigh the costs of reducing pollutants. The research reported in this paper makes a key contribution in several key ways. First, it uses the improved science understanding about the links between management changes and reef health to bring together the analysis of costs and benefits of marginal changes, helping to demonstrate the appropriate way of addressing policy questions relating to reef protection. Second, it uses the scientific relationships to frame a choice experiment to value the benefits of improved reef health, and links improvements explicitly to changes in ‘water quality units’. Third, the research demonstrates how protection values are consistent across a broader population, with some limited evidence of distance effects. Fourth, the information on marginal costs and benefits that are reported provide policy makers with key information to help improve management decisions. The results indicate that while there is potential for water quality improvements to generate net benefits, high cost water quality improvements are generally uneconomic. One implication for policy makers is that cost thresholds for key pollutants should be set to avoid more expensive water quality proposals being selected.Choice modelling experiment, attribute definition, input output definition, Environmental Economics and Policy, Q. 15, Q51, Q57,

Assessing national values to protect the health of the Great Barrier Reef

The Great Barrier Reef (GBR) is a vast iconic environmental asset covering an area of approximately 35 million hectares. It is valued by people all over Australia, as well as overseas. Non-market values for the GBR will comprise both use and non-use values. The values of people who live closer to the GBR and who can visit it more frequently are likely to be higher than those who live further away. The aim of this study was to estimate the values to protect the health of the GBR at the national level and to examine the effects of distance decay on valuation estimates. A split-sample choice-modelling experiment was conducted in six locations: a regional town within the GBR catchment area (Townsville); Brisbane, the state capital approximately 450 km from the southern limit of the GBR; and four other capital cities (Sydney, Melbourne, Adelaide and Perth) ranging from 730 km to over 3600 km from Brisbane. The results indicate that the total national value for a 1 per cent improvement in the health of the GBR ranges from between a low of approximately $433.6 million to a high of$811.3 million, depending on the underlying assumptions made. There was some evidence of distance decay in values. Most decline occurred once outside the home state, and little further decline once away from the east coast. There was no evidence to suggest any difference in patterns of use and non-use values. The values of the potential future users were most influential in determining WTP estimates.Environmental Economics and Policy,

Public values for improved water security for domestic and environmental use

A choice modelling valuation exercise was recently undertaken across several countries to assess the tradeoffs that households are prepared to make between water use restrictions, maintaining environmental condition in waterways, and increased water costs. The results from the Queensland survey are reported in this paper. Also discussed are some of the tradeoffs involved in assuring the integrity of an international survey while retaining sufficient local context to make the choice modelling exercise both realistic and meaningful.Choice modelling, water scarcity, water use tradeoffs, international survey, Resource /Energy Economics and Policy, Environmental Economics and Policy,