Approach to Analysis of Self-Selected Interval Data

We analyze an approach to quantitative information elicitation in surveys that includes many currently popular variants as special cases. Rather than asking the individual to state a point estimate or select between given brackets, the individual can self-select any interval of choice. We propose a new estimator for such interval censored data. It can be viewed as an extension of Turnbull's estimator (Turnbull(1976)) for interval censored data. A detailed empirical example is provided, using a survey on the valuation of a public good. We estimate survival functions based on a Weibull and a mixed Weibull/exponential distribution and prove that a consistent maximum likelihood estimator exists and that its accuracy can be consistently estimated by re-sampling methods in these two families of distributions.Interval data; Maximum Likelihood; Turnbull estimator; willingness-to-pay; quantitative elicitation

Consumer versus citizen preferences in contingent valuation: evidence on the role of question framing

Rather than individual consumer preferences, responses to referendum-style contingent valuation surveys on environmental goods may express citizen assessments that take into account benefits to others. We reconsider the consumer versus citizen hypothesis with a focus on the role of framing information. Survey data on conservation areas in Ilomantsi, Finland, are used. Different versions of the valuation question were used to encourage the respondents to take the consumer or the citizen role. The citizen version expectedly resulted in substantially fewer zero-WTP responses and protests and higher mean and median WTP, suggesting that the framing information has a major effect on the preferences expressed. The findings support the idea of multiple preferences. For a more confident interpretation of contingent valuation responses, future studies should recognise their intended use in survey design and gain information about respondents’ motives to determine the presence and type of altruistic motives.altruism, benefit–cost analysis, conservation areas, contingent valuation, multiple preference orderings, referendum, spike model, Consumer/Household Economics,

Starting-point bias and respondent uncertainty in dichotomous choice contingent valuation surveys

In this article, we develop a dichotomous choice model with follow-up questions that describes the willingness to pay being uncertain in an interval. The initial response is subject to starting point bias. Our model provides an alternative interpretation of the starting point bias in the dichotomous choice valuation surveys. Using the Exxon Valdez survey, we show that, when uncertain, individuals tend to answer "yes".starting point bias ; preference uncertainty ; contingent valuation

Can local communities in Zimbabwe be trusted with wildlife management?: Evidence from contingent valuation of elephants

If local communities living adjacent to the elephant see it as a burden, then they cannot be trusted to be its stewards. To assess their valuation of it, a CVM study was conducted for one CAMPFIRE district in Zimbabwe. Respondents were classified according to their preferences over the elephant. The median WTP for the preservation of 200 elephants is ZW$260 (US$4.73) for respondents who considered the elephant a public good while the same statistic is ZW$137 (US$2.49) for those favouring its translocation. The preservation of 200 elephants yields an annual net worth of ZW$10,828 (US$196) to CAMPFIRE households. However, the majority of households (62%) do not support elephant preservation. This is one argument against devolution of elephant conservation to local communities. Adequate economic incentives must be extended to local communities if their majority is to partake in sound elephant conservation. External transfers constitute one way of providing additional economic incentives.Campfire, contingent valuation, double bounded spike model, elephant, Zimbabwe

Innovation and the environmental Kuznets curve: the case of CO, NMVOCs and SOx in the Italian regions

The paper explores the relationship between per capita income and three air pollutants, CO, NMVOCs and SOx, using a novel dataset based on the Italian regions. Given the central role of technological progress in long-term environmental problems, we empirically investigate the influence of innovation on the environmental Kuznets curve (EKC). The estimation results validate the EKC hypothesis for the three air pollutants considered. Furthermore, the influence of innovation on the inverted-U-shaped curve identified by the theoretical literature is empirically confirmed too.Air pollutants, Environmental Kuznets Curve, Italian regions, Technological Progress.

A note on how to undertake a cost-benefit analysis in monetary and environmental units

In this note we discuss two alternative ways of undertaking a social cost-benefit analysis. One approach is the conventional one where benefits and costs are expressed in monetary units. The other approach uses an environmental asset as the payment vehicle. The properties of the two approaches are discussed and the measurement problems are stressed.Cost-benefit analysis; externalities; choice of numeraire; habitat equivalence analysis; resource equivalency methods

Risk Aversion and International Environmental Agreements

We introduce uncertainty and risk aversion to the study of international environmental agreements. We consider a simple model with identical agents and linear payoffs. We show that a stable treaty with positive action always exists. While uncertainty lowers the action of signatories, we find that it may increase participation. In addition, uncertainty may generate multiple equilibria. A treaty with low action and low participation may coexist with one with high action and high participation. Overall, and despite risk aversion, the impact of uncertainty on welfare may be positive. A reduction in uncertainty may hurt international cooperation.International Environmental Agreements, Risk Aversion, Uncertainty

WILLINGNESS TO PAY FOR NON-GENETICALLY MODIFIED FOOD: EVIDENCE OF HYPOTHETICAL BIAS FROM AN AUCTION EXPERIMENT IN JAPAN

Replaced with revised version of paper 08/05/04.Consumer/Household Economics,

International Trade and Net Investment: Theory and Evidence

The theory of welfare accounting shows that comprehensive measures of net investment can be used to test whether an economy is following unsustainable paths of consumption. However, the notion of net investment used in most applied studies rules out technological progress and terms-of-trade gains from international trade. This paper considers an augmented expression of net investment derived from a dynamic growth model featuring international trade in different types of resource inputs, exogenous productivity growth in final sectors, and cost-reducing progress in resource extraction. Calculating augmented net investment for the world's top twenty oil producers, we show that the difference with standard non-augmented measures can be large and may even revert some established con- clusions regarding sustainability: prospects are more favorable than previously thought in oil-exporting countries endowed with large reserves like Angola, Azerbaijan, Kuwait, Saudi Arabia and Venezuela. In oil-importing economies, future consumption possibilities are limited by the lack of expected rental incomes from future resource exports.International Trade, Natural Resources, Net Investment, Sustainability, Technological Progress

Efectos sociales de la contaminación acústica. Una aplicación de valoración al transporte ferroviario.

The article describes an application of contingent valuation to estimate welfare losses caused by noise pollution in the railway line connecting Galicia and Portugal. In addition, temporary specification related to the payment vehicle in the valuation and the internationally used rating scales of annoyance were applied to the analysis of the data. Results show a positive willingness to pay of about 97 €/household.We have observed that the correct definition of the temporary period in the payment vehicle plays a fundamental role in the quality of the results. We have also obtained that individuals show a simplified perception of the commonly used scale to rate the annoyancecontingent valuation, stated preferences, noise, railway transport, spike, non parametric models.