The Effects of Contamination and Cleanup on Commercial and Industrial Properties: A Hedonic Pricing Model of Maryland and Baltimore City

This paper applies the travel cost method to visits to cultural sites in Armenia by domestic visitors. Respondents intercepted at four cultural monuments provided information on their visitation patterns, experience at the site, perception of the state of conservation of the monuments, and rating of the quality of the services and infrastructures. We combine actual trips with stated trips under hypothetical programs that would enhance the conservation of the monuments and improve one of (i) the cultural experience at the site, (ii) the quality of the infrastructure, or (iii) the quality of the services, and use the combined actual and stated trips to fit a panel data model. Our investigation shows that that there are significant use values associated with the four study monuments, and that conservation programs and initiatives that improve the cultural experience, or simply make it easier for the respondent to reach and spend time at the monument, are valued by domestic visitors and would encourage higher visitation rates.

Valuation of Marine Ecosystem Threshold Effects : Application of Choice Experiments to Value Algal Bloom in the Black Sea Coast of Bulgaria

Algal bloom arises in part from anthropogenic emissions of nutrients into the coastal zone. Increased interest in water quality in coastal and marine areas stemming from the Water Framework Directive and the Marine Strategy Framework Directive leads to important questions in terms of policies to address nutrient loadings. This paper presents the results from a choice experiment for the valuation of algal blooms in Varna Bay, Bulgaria. Varna Bay is an important tourist destination and a large port city on the Black Sea coast of Bulgaria. Algal bloom events have been experienced frequently in this area. A choice experiment questionnaire was developed to be applied in Varna Bay. The key attributes used were visibility, duration of bloom and the amount of congestion on the beach. The amount of bloom is found to be important - respondents are willing to pay for a program that entails 1 week of algal bloom about 33 Leva (s.e. 8.09) when there is high visibility; 21 Leva (s.e. 5.75) with medium visibility and 9 Leva (s.e. 3.48) with low visibility. Respondents are willing to pay more for programs that offer shorter duration of algal bloom. The marginal price for one metre of extra space between the respondent and the nearest person is equal to 0.38 Leva.threshold effects; marine ecosystem

Enriching Stakeholder participation through Environmental Valuation; Eliciting Preferences for a National Park Designation in Northern Ireland

This paper provides the theoretical framework and describes the preliminary steps for combining collaborative planning and non-market valuation techniques to improve the decision making process and stakeholder involvement in land use decisions. Combining components of Collaborative Planning (CP) — a Planning theory seeking to achieve the highest level of consensus possible amongst all stakeholders — with non-market valuation techniques (Travel Cost Method and Contingent Behaviour) - widely used in environmental economics — this study attempts to elicit the preferences of the Northern Ireland population which could be affected by the proposed designation of a National Park. The CP elements of public participation are first used as an aid to design the survey instrument and then explored as a means of the validation of results analysed from the survey. In a Contingent Behaviour survey, key attributes are set at varying levels to assess how respondents’ welfare would be affected by hypothetical changes in the management and infrastructures of a recreational area.travel cost, contingent behaviour, revealed preferences, stated preferences, national park designation, collaborative planning, stakeholder involvement, Environmental Economics and Policy,

Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation

We use contingent valuation to place a value on the conservation of built cultural heritage sites in Armenia. When we present the hypothetical scenario in the questionnaire we spell out what would happen to the monuments in the absence of the government conservation program. We posit that respondents combine such information with their own prior beliefs, which the questionnaire also elicits, and that the WTP for the good or program is likely to be affected by these updated beliefs. We propose a Bayesian updating model of prior beliefs, and empirically implement it using the data from our survey. We find that uncertainty about what would happen to the monument in the absence of the program results in lower WTP amounts.Valuation of Cultural Heritage Sites, Non-Market Valuation, Contingent Valuation, Bayesian Updating, Prior Beliefs

The Value of Cultural Heritage Sites in Armenia: Evidence from a Travel Cost Method Study

This paper applies the travel cost method to visits to cultural sites in Armenia by domestic visitors. Respondents intercepted at four cultural monuments provided information on their visitation patterns, experience at the site, perception of the state of conservation of the monuments, and rating of the quality of the services and infrastructures. We combine actual trips with stated trips under hypothetical programs that would enhance the conservation of the monuments and improve one of (i) the cultural experience at the site, (ii) the quality of the infrastructure, or (iii) the quality of the services, and use the combined actual and stated trips to fit a panel data model. Our investigation shows that that there are significant use values associated with the four study monuments, and that conservation programs and initiatives that improve the cultural experience, or simply make it easier for the respondent to reach and spend time at the monument, are valued by domestic visitors and would encourage higher visitation rates.Valuation of cultural heritage sites, Non-market valuation, Travel cost, Consumer surplus, Contingent behavior

Identification of Options and Policy Instruments for the Internalisation of External Costs of Electricity Generation. Dissemination of External Costs of Electricity Supply Making Electricity External Costs Known to Policy-Makers MAXIMA

In the present paper, after reviewing the results of the ExternE project and its follow-up stages in the estimation of the external costs of electricity production, we look at the policy instruments for the internalisation of such costs. Emphasis is given to subsidies, such as feed-in tariffs, competitive bidding processes and tradable green certificates to stimulate the use of renewables in the production of electricity. When policy-makers are asked to choose the instrument(s) to internalise the externalities in the electricity production, they have to find a solution that gives the best outcome in terms of efficiency, cost minimisation, impact on the job market, security of energy supply, equity of the instrument, technological innovation, certainty of the level of the internalisation, and feasibility. The choice of the instrument will require some trade-offs among these criteria. Conjoint choice analysis can help in investigating how stakeholders and policy makers trade off the criteria when choosing a policy for the internalisation of the externalities. In this paper we present the first results of a questionnaire that employs conjoint choice questions to find out how policy makers and stakeholders of the electricity market trade off some socio-economic aspects in the selection of the policy instruments for the internalisation of the externalities. The results of this first set of interviews will be useful for further research.Policy instruments, ExternE, External costs, Electricity, Conjoint choice analysis

What are the Effects of Contamination Risks on Commercial and Industrial Properties? Evidence from Baltimore, Maryland

Using the hedonic pricing approach, we investigate how the information released on public registries of contaminated and potentially contaminated sites affects nearby commercial and industrial properties in Baltimore, Maryland. We find that commercial and industrial properties are virtually unaffected by proximity to a site with a history of contamination. Knowing that the site is no longer considered contaminated does not have a rebound effect on property prices either. We also find that urban economic development policies, such as Empowerment Zones and Enterprise Zones, have little effect on property values. In sum, brownfield properties in Baltimore are not particularly attractive investments for developers, and there is little potential for self-sustaining cleanup based on appropriate fiscal incentives, such as Tax Increment Financing. It is doubtful that “one size fits all” measures to encourage the cleanup of contaminated sites can be successful in this context.Contaminated sites registries, Distance to contaminated sites, Hedonic pricing model, Brownfields

The Value of Cultural Heritage Sites in Armenia: Evidence From a Travel Cost Method Study

This paper applies the travel cost method to visits to cultural sites in Armenia by domestic visitors. Respondents intercepted at four cultural monuments provided information on their visitation patterns, experience at the site, perception of the state of conservation of the monuments, and rating of the quality of the services and infrastructures. We combine actual trips with stated trips under hypothetical programs that would enhance the conservation of the monuments and improve one of (i) the cultural experience at the site, (ii) the quality of the infrastructure, or (iii) the quality of the services, and use the combined actual and stated trips to fit a panel data model. Our investigation shows that that there are significant use values associated with the four study monuments, and that conservation programs and initiatives that improve the cultural experience, or simply make it easier for the respondent to reach and spend time at the monument, are valued by domestic visitors and would encourage higher visitation rates.

Public Preferences for Land uses’ changes - valuing urban regeneration projects at the Venice Arsenale

This paper discusses the results of a conjoint analysis study developed to assess alternative land uses for an important part of the city of Venice: its Arsenal. Aim of the study is to illustrate the potential of stated preferences techniques for placing a value on redevelopment and reuse alternatives for an underutilized site with high historical, cultural and architectural significance. Very few studies have used conjoint choice to assess public preferences for alternative land uses in an ex-ante framework, i.e. masterplans. For our study, we wanted to concentrate on a “city of art,” where the relationship between cultural heritage resources management and city development is more critical. Venice was an obvious choice for the national and international relevance of its heritage. The Arsenale is one of the few places in Venice that has the potential for a real transformation of its uses, with important impacts on both residents and visitors. Moreover, the Arsenale plays a strong symbolic role: it was the place where the strength and power of the Serenissima was built. The City Council of Venice has recently deliberated that the Arsenale is an inalienable heritage of the city of Venice. In recent years, the importance of the Arsenale has resulted in a heated debate on its possible new uses. Many architectural proposals have been submitted through international competitions. These proposals—whether submitted in the past or currently under consideration—have shown that there may be a conflict between different possible land uses and the transformation allowed by the existing architectural structures. We surveyed individuals in Venice asking respondents to engage in conjoint choice tasks, gathering 168 usable observations. Members of the general public were intercepted at the Multimedia Library at Palazzo Querini Stampalia/FEEM and asked to indicate which choice they preferrd among hypothetical—but realistic—redevelopment projects of the Arsenale historic site. Each project was described by a vector of attributes, such as land use, use of basins and waterways, architectural features, access, employment implied by the reuse, and cost. The responses to these choice tasks was used to infer the rate at which respondents trade off land uses, aesthetic features, and costs, and hence to derive the value of marginal changes in the attributes, and the value of a proposed policy package. The Venice Arsenale is owned by the Italian government and is currently used by the Italian Navy. The Arsenale site accounts for about 15 percent of the area of the city of Venice (about 45 hectares), and is located in the Castello district. Tradition has it that doge Ordefalo Falier founded the Arsenale—a shipbuilding yard—in 1104. In 1340 the “Darsena Nuova” was created, which marked the birth of the Arsenal Nuovo and of the Corderie building. Further expansion started in 1473, covering an area of 26 hectares. This phase lasted more than 100 years, resulting in the construction of the New Corderie building, among others, in 1591. In its heyday, the Arsenale employed roughly 20,000 workers in an assembly-line fashion and produced one ship a day. The Arsenale, after the navy largely withdrew from the complex over 40 years ago, suffered from abandonment and under use. The Arsenale is, therefore, one of the few places in Venice that has the potential for a real transformation of its uses. In this paper we investigate how the development of the Arsenale site, involving alternative land uses, may influence the welfare of the residents of the historical city center of Venice. Starting from the evidence of our survey in Venice, the paper broaden its scope to discuss ways of improving the management of cultural heritage cities, focusing on new forms of involvement and public participation based on public preferences’ elicitation. We debate the issues related to city governance and the need for an appropriate level of democratic participation. An integrated approach, capable of bridging the practice of economic valuation, urban design, conservation of the built environment, and decision-making support systems is here analysed.

The Internalization of Externalities in The Production of Electricity: Willingness to Pay for the Attributes of a Policy for Renewable Energy

This paper investigates the willingness to pay of a sample of residents of Bath, England, for a hypothetical program that promotes the production of renewable energy. Using choice experiments, we assess the preferences of respondents for a policy for the promotion of renewable energy that (i) contributes to the internalization of the external costs caused by fossil fuel technologies; (ii) affects the security of energy supply; (iii) has an impact on the employment in the energy sector; (iv) and leads to an increase in the electricity bill. Responses to the choice questions show that our respondents are in favour of a policy for renewable energy and that they attach a high value to a policy that brings private and public benefits in terms of climate change and energy security benefits. Our results therefore suggest that consumers are willing to pay a higher price for electricity in order to internalize the external costs in terms of energy security, climate change and air pollution caused by the production of electricity.Non Market Valuation, Choice Experiments, Willingness to Pay, Renewable Energy, Energy Security, Greenhouse Gases Emissions