Multi-Attribute Choice Modeling of Australia’s Rivers and Wetlands: A Meta-Analysis of Ten Years of Research

A meta-analysis is presented of the empirical findings of 10 years of choice experiment applications to water and wetland management issues in Australia. A random effects Tobit model is estimated to investigate the suitability of using existing willingness to pay (WTP) values derived from estimated choice models for the purpose of benefits transfer. The random effects model outperforms the fixed effects model in terms of predictive power. An analysis of variance reveals that the survey method, sample size, and statistical model are important determinants of estimation precision and error. The use of different attributes, measurement units and levels in choice experiments makes it hard to compare WTP values for environmental attributes from different studies. The benefits associated with current and possible future use of the water resources are valued significantly higher than the nonuse benefits. Except for the systematically lower values for the Fitzroy, WTP values are more or less transferable across catchments. Other important control variables when transferring the results from choice models across water and wetland policy contexts include income levels of the population of beneficiaries and methodological study characteristics such as the number of choice tasks in the choice experiment.choice experiments, stated preferences, value transfer, validity

Testing for value stability with a meta-analysis of choice experiments: River health in Australia

While meta-analysis is typically used to identify value estimates for benefit transfer, applications also provide insights into the potential influence of design, study and methodological factors on results of non-market valuation experiments. In this paper, a metaanalysis of sixteen separate choice modelling studies in Australia with 130 individual value estimates relating to river health are reported. The studies involved different measures and scales of river health, so consistency was generated by transforming implicit prices from each study into a common standard of WTP per kilometer of river in good health. Tobit models have been used to identify the relationships between the dependent variable (WTP/km) and a number of variables. The results demonstrate that values are sensitive to marginal effects, with lower WTP/km for larger catchments, and higher WTP/km when river health is in decline. Values are also lower when river health has been defined by a subset of benefit types, such as recreation uses, vegetation health, fish health or bird populations. While there is evidence that the framing of the choice sets and descriptions of attributes have systematic impacts on values, there is very little evidence that choice dimensions, collection methods, sample sizes, response rates, statistical methods or publication status have influenced value estimates. Tests of apparent author effects show that these become insignificant when other explanatory variables are included in the models.non-market valuation, choice modelling, meta analysis, river health, 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,

Determinants of Participation in a Catastrophe Insurance Programme: Empirical Evidence from a Developing Country

The paper presents empirical evidence of the determinants of catastrophe insurance participation in one of the poorest and most disaster prone countries in the world. In a large-scale household survey carried out in 2006 we ask 3,000 residents in six different districts in Bangladesh facing various environmental risk exposure levels about their willingness to participate in a catastrophe insurance programme. Combining factors put forward in risk theory and economics, we estimate a model of insurance participation. We show that the household decision to participate in the insurance programme differs depending on both exogenous and endogenous risk exposure levels. As predicted by micro-economic theory, ability to pay, measured in terms of household income and access to credit, significantly affects insurance participation. Furthermore, among the sociodemographic factors investigated in this case study, respondent education and occupation are found to significantly influence household decision making. Our study suggests that low participation rates for catastrophe insurance in a developing country can be explained by high rates of illiteracy and limited access to credit.Natural disasters, catastrophe, insurance, participation, risk, Bangladesh, Consumer/Household Economics, Environmental Economics and Policy, International Development, Risk and Uncertainty, Q54,

The economic value of river restoration

This study was part of the European Framework 7 funded project ‘Restoring Rivers for Effective Catchment Management’ (REFORM).Introduction to the special issue and a meta-analysis of the nonmarket valuation literature to inform river restoration policy and decision-makingPostprintPeer reviewe

What is the future of water quality trading?

A comprehensive review of experiences with water quality trading (WQT) programs worldwide is presented, spanning altogether more than 4 decades. A new WQT database is built, extracting data and information from existing review papers, complemented with gray and published literature about individual trading programs. Key aspects that affect trading volumes and program continuation are identified and categorized. No single success or fail factor emerges from this review, typically a mix of factors play a role. There is potential for WQT to evolve further and serve as a cost-effective pollution control instrument, but this requires nudging political will to regulate nonpoint source.</p

Choice consistency and preference stability in test-retests of discrete choice experiment and open-ended willingness to pay elicitation formats

This study was funded by the Swiss Federal Institute of Aquatic Science and Technology (Eawag) in Zürich.This study tests the temporal stability of preferences, choices and willingness to pay (WTP) values using both discrete choice experiment (DCE) and open-ended (OE) WTP elicitation formats. The same sample is surveyed three times over the course of two years using each time the same choice sets. Choice consistency is positively correlated with choice certainty and choice complexity. The impact of choice complexity fades away in time, most likely as a result of learning and preference refinement. Although the OE WTP values remain stable over a time period of 2 years as in previous stated preference studies, DCE based WTP measures differ significantly, suggesting their use in benefits transfer may be limited.Publisher PDFPeer reviewe

Opt-Out Forced Choice Effect in Combined Revealed and Stated Preference Discrete Choice Models: A Gender Perspective

In this study, we assess the convergent validity of preferences and willingness-to-pay (WTP) values for beach quality improvements from a gender perspective by isolating opt-out forced-choice effect from the SP1 DCE data (that is a forced-choice situation when a respondent was asked to select among the competing labelled alternatives if they chose an opt-out). Following this approach, we combine the RP discrete choice model and SP1 DCE datasets by splitting them into female and male sub-samples and then investigate whether estimated preferences and WTP values are susceptible to this effect from a gender perspective. Using the multinomial logit (MNL) models, we find that female visitors’ preferences are compatible across RP and SP1 data if the forced-choice effect is isolated from SP1 data, whereas this is not true for the male visitors. However, WTP values appear similar for both the female and male RP and SP1 sub-samples. Also, the sources of opt-out forced choices appear more promising for females than those of male counterparts in the estimated binary logit models. Our results, therefore, suggest that preferences’ similarity is a gender-specific if the opt-out forced-choice effect is isolated, but WTP similarity is not

Valuing malaria morbidity: results from a global meta-analysis

The risk of malaria transmission worldwide is expected to increase with climate change. In order to estimate the welfare implications, we analyse the factors that explain willingness to pay to avoid malaria morbidity using a meta-analysis. We fail to replicate a previous meta-analysis, despite using a near-identical dataset. Thus, this paper outlines a more robust approach to analysing such data. We compare multiple regression models via a cross-validation exercise to assess best fit, the first in the meta-analysis literature to do so. Weighted random effects gives best fit. Confirming previous studies, we find that revealed preferences are significantly lower than stated preferences; and that there is no significant difference in the willingness to pay for policies that prevent (pre-morbidity) or treat malaria (post-morbidity). We add two new results to the morbidity literature: (1) Age has a non-linear impact on mean willingness to pay and (2) willingness to pay decreases if malaria policies target communities instead of individual households

A comparative study of two phenomenological models of dephasing in series and parallel resistors

We compare two phenomenological models of dephasing that are in use recently. We show that the stochastic absorption model leads to reasonable dephasing in series (double barrier) and parallel (ring) quantum resistors in presence and absence of magnetic flux. For large enough dephasing it leads to Ohm's law. On the other hand a random phase based statistical model that uses averaging over Gaussian random-phases, picked up by the propagators, leads to several inconsistencies. This can be attributed to the failure of this model to dephase interference between complementary electron waves each following time-reversed path of the other.Comment: 7 pages, 9 figure