Assessing Economic Benefits of Good Ecological Status in Lakes under the EU Water Framework Directive. Case study report. Norway

An internet survey was conducted on 1113 households in Østfold County and southern muni­cipalities of Akershus County in the summer of 2008. The survey focused on households’ recreational use of water bodies and their willingness to pay for improvements in lake ecological status. The main objective of the study was to evaluate at what distance from improved lakes, households willingness to pay falls to zero. This is key to correctly determining how large a population has benefits from measures under the Water Framework Directive, and making correct estimates of total benefits of a programme of measures. Valuation methods aimed at capturing recreational use values and also non-use values. The largest lakes in Østfold in three different catchments (Morsa, Glomma and Halden) were considered, Alternative valuation methods are compared for two lakes in particular in this report (Vestre Vansjø and Storefjorden). The study was the Norwegian case study for the EUFP6 AQUAMONEY research project.European Commissio

Introducing willingness-to-pay for noise changes into transport appraisal: an application of benefit transfer.

Numerous research studies have elicited willingness-to-pay values for transport-related noise, however, in many industrialised countries including the UK, noise costs and benefits are still not incorporated into appraisals for most transport projects and policy changes (Odgaard et al, 2005; Grant-Muller et al, 2001). This paper describes the actions recently taken in the UK to address this issue, comprising: primary research based on the city of Birmingham; an international review of willingness-to-pay evidence; development of values using benefit transfers over time and locations; and integration with appraisal methods. Amongst the main findings are: that the willingness-to-pay estimates derived for the UK are broadly comparable with those used in appraisal elsewhere in Europe; that there is a case for a lower threshold at 1 45dB(A)Leq,18hr1 rather than the more conventional 55dB(A); and that values per dB(A) increase with the noise level above this threshold. There are significant issues over the valuation of rail versus road noise, the neglect of non-residential noise and the valuation of high noise levels in different countries. Conclusions are drawn regarding the feasibility of noise valuation based on benefit transfers in the UK and elsewhere, and future research needs in this field are discussed

Valuation methods and approaches for assessing natural resource management impacts

This chapter provides an overview of the valuation methods and methodological approaches used to evaluate the economic and environmental impacts of natural resource management (NRM) interventions. First, the multiple agro-ecosystem services associated with NRM are summarized. The core issues involved in the valuation of agro-ecosystem services are then discussed. This is followed by a presentation of the theoretical foundations of valuation methods along with some examples of applications in the area of natural resources. The next part summarizes how economic and environmental impacts can be integrated to provide an assessment of the social net benefits from NRM interventions, and the conclusion highlights the major issues and most promising valuation method

Estimating the welfare loss to households from natural disasters in developing countries: a contingent valuation study of flooding in Vietnam

Background: Natural disasters have severe impacts on the health and well-being of affected households. However, we find evidence that official damage cost assessments for floods and other natural disasters in Vietnam, where households have little or no insurance, clearly underestimate the total economic damage costs of these events as they do not include the welfare loss from mortality, morbidity and reduced well-being experienced by the households affected by the floods. This should send a message to the local communities and national authorities that higher investments in flood alleviation, reduction and adaptive measures can be justified since the social benefits of these measures in terms of avoided damage costs are higher than previously thought. Methods: We pioneer the use of the contingent valuation (CV) approach of willingness-to-contribute (WTC) labour to a flood prevention program, as a measure of the welfare loss experienced by household due to a flooding event. In a face-to-face household survey of 706 households in the Quang Nam province in Central Vietnam, we applied this approach together with reported direct physical damage in order to shed light of the welfare loss experienced by the households. We asked about households’ WTC labour and multiplied their WTC person-days of labour by an estimate for their opportunity cost of time in order to estimate the welfare loss to households from the 2007 floods. Results: The results showed that this contingent valuation (CV) approach of asking about willingness-to-pay in-kind avoided the main problems associated with applying CV in developing countries. Conclusion: Thus, the CV approach of WTC labour instead of money is promising in terms of capturing the total welfare loss of natural disasters to households, and promising in terms of further application in other developing countries and for other types of natural disasters

Population ageing and deaths attributable to ambient PM2·5 pollution: a global analysis of economic cost

BACKGROUND: The health impacts of ambient air pollution impose large costs on society. Although all people are exposed to air pollution, the older population (ie, those aged ≥60 years) tends to be disproportionally affected. As a result, there is growing concern about the health impacts of air pollution as many countries undergo rapid population ageing. We investigated the spatial and temporal variation in the economic cost of deaths attributable to ambient air pollution and its interaction with population ageing from 2000 to 2016 at global and regional levels. METHODS: In this global analysis, we developed an age-adjusted measure of the value of a statistical life-year (VSLY) to estimate the economic cost of deaths attributable to ambient PM2·5 pollution using Global Burden of Diseases, Injuries, and Risk Factors Study 2017 data and country-level socioeconomic information. First, we estimated the global age-specific and cause-specific mortality and years of life lost (YLLs) attributable to PM2·5 pollution using the global exposure mortality model and global estimates of exposure at 0·1° × 0·1° (about 11 km × 11 km at the equator) resolution. Second, for each year between 2000 and 2016, we translated the YLLs within each age group into a health-related cost using a country-specific, age-adjusted measure of VSLY. Third, we decomposed the major driving factors that contributed to the temporal change in health costs related to PM2·5. Finally, we did a sensitivity test to analyse the variability of the estimated health costs to four alternative valuation measures. We identified the uncertainty intervals (UIs) from 1000 draws of the parameters and concentration–response functions by age, cause, country, and year. All economic values are reported in 2011 purchasing power parity-adjusted US dollars. All simulations were done with R, version 3.6.0. FINDINGS: Globally, in 2016, PM2·5 was estimated to have caused 8·42 million (95% UI 6·50–10·52) attributable deaths, which was associated with 163·68 million (116·03–219·44) YLLs. In 2016, the global economic cost of deaths attributable to ambient PM_{2·5} pollution for the older population was US$2·40 trillion (1·89–2·93) accounting for 59$4·09 trillion [3·19–5·05]). The economic cost per capita for the older population was $2739 (2160–3345) in 2016, which was 10 times that of the younger population (ie, those aged <60 years). By assessing the factors that contributed to economic costs, we found that increases in these factors changed the total economic cost by 77% for gross domestic product (GDP) per capita, 21% for population ageing, 16% for population growth, −41% for age-specific mortality, and −0·4% for PM_{2·5} exposure. INTERPRETATION: The economic cost of ambient PM_{2·5} borne by the older population almost doubled between 2000 and 2016, driven primarily by GDP growth, population ageing, and population growth. Compared with younger people, air pollution leads to disproportionately higher health costs among older people, even after accounting for their relatively shorter life expectancy and increased disability. As the world's population is ageing, the disproportionate health cost attributable to ambient PM2·5 pollution potentially widens the health inequities for older people. Countries with severe air pollution and rapid ageing rates need to take immediate actions to improve air quality. In addition, strategies aimed at enhancing health-care services, especially targeting the older population, could be beneficial for reducing the health costs of ambient air pollution. FUNDING: National Natural Science Foundation of China, China Postdoctoral Science Foundation, and Qiushi Foundation

The Warden Attitude: An investigation of the value of interaction with everyday wildlife

Using a discrete choice experiment, we elicit valuations of engagement with ‘everyday wildlife’ through feeding garden birds. We find that bird-feeding is primarily but not exclusively motivated by the direct consumption value of interaction with wildlife. The implicit valuations given to different species suggest that people prefer birds that have aesthetic appeal and that evoke human feelings of protectiveness. These findings suggest that people derive wellbeing by adopting a warden-like role towards ‘their’ wildlife. We test for external validity by conducting a hedonic analysis of sales of bird food. We discuss some policy implications of the existence of warden attitudes

Estimation of New Monetary Valuations of Travel Time, Quality of Travel, and Safety for Singapore

A large-scale study in Singapore estimated new monetary valuations for travel time, quality of travel, and safety covering different modes and journey components. A wide-ranging stated-choice survey was conducted on a large, representative sample. The empirical work pushed the boundaries of the international state of the practice in choice modeling by relying on mixed logit models with all model components being random and a full covariance matrix being estimated. Detailed results are presented, and the values are contrasted with those from the previous study, conducted in 2008

Assessing the effectiveness of public investments in cultural built heritage: the case of the umbertine forts system in italy

The paper deals with the topic of the allocation of resources and investment strategies in cultural built heritage. The valorization of cultural assets is often guaranteed by the intervention of public funding. The need to allocate these funds efficiently and effectively, together with the transparency duties to which public administrations are subject, necessitates a careful measurement of the economic, cultural, environmental and social effects. Accordingly, the paper outlines the starting framework of a study on the ex-post evaluation of the effectiveness of public intervention towards the restoration and valorization of three forts in the Umbertine Forts System, located in the Metropolitan City of Reggio Calabria, southern Italy