Estimating optimal conservation in agricultural landscapes when costs and benefits of conservation measures are heterogeneous in space and over time

Designing agri-environmental schemes targeted at conservation poses the key question of how many financial resources should be allocated to address a particular aim such as the conservation of an endangered species. Economists can contribute to an answer by estimating the 'optimal level of species conservation'. This requires an assessment of the supply and the demand curve for conservation and a comparison of the two curves to identify the optimal conservation level. In a case study we estimate the optimal conservation level of Large Blue butterflies (protected by the EU Habitats Directive) in the region of Landau, Germany. The difference to other studies estimating optimal conservation is that a problem is addressed where costs and benefits of conservation measures are heterogeneous in space and over time. In our case study we find a corner solution where the highest proposed level of butterfly conservation is optimal. Although our results are specific to the area and species studied, the methodology is generally applicable to estimate how many financial resources should be allocated to conserve an endangered species in the context of agri-environmental schemes. --agri-environmental policy,biodiversity,optimal conservation,spatial heterogeneity,willingness-to-pay

Estimating optimal conservation in agricultural landscapes when costs and benefits of conservation measures are heterogeneous in space and over time

Designing agri-environmental schemes targeted at conservation poses the key question of how many financial resources should be allocated to address a particular aim such as the conservation of an endangered species. Economists can contribute to an answer by estimating the 'optimal level of species conservation'. This requires an assessment of the supply and the demand curve for conservation and a comparison of the two curves to identify the optimal conservation level. In a case study we estimate the optimal conservation level of Large Blue butterflies (protected by the EU Habitats Directive) in the region of Landau, Germany. The difference to other studies estimating optimal conservation is that a problem is addressed where costs and benefits of conservation measures are heterogeneous in space and over time. In our case study we find a corner solution where the highest proposed level of butterfly conservation is optimal. Although our results are specific to the area and species studied, the methodology is generally applicable to estimate how many financial resources should be allocated to conserve an endangered species in the context of agri-environmental schemes

Valuing wilderness preservation in Iceland using WTP and WTA : an investigation into data collection modes

This study reports an application of the Contingent Valuation method (CV) to estimate the non-market costs and benefits of hydro scheme developments in an Icelandic wilderness area.  A deliberative group-based approach, called Market Stall (MS), is compared to a control group consisting of conventional in-person interviews, in order to investigate flaws of CV, such as poor validity, high non-response rates to the elicitation question and protest responses.  A careful exploration into perceived property rights led to the use of willingness to accept (WTA) in compensation for wilderness loss and willingness to pay (WTP) for hydro scheme related benefits.  Furthermore, a novel approach to participant behaviour observation and debriefing questions provided insights into the shortcomings of conventional data collection modes, in terms of encouraging motivation, standardised information sets and time pressure, as well as a useful supplement to validity testing. The study suggests that public preferences for the preservation of the wilderness area (status quo) outweigh preferences for non-market hydro scheme benefits.  Mean WTA accounts for 780.107 kr (MS estimates) and 86,328 kr (control group estimates), while mean WTP totals 21,326 kr (MS estimates) and 6,377 kr (control estimates).  According to this study, MS is better suited for preference construction over complex environmental goods:  estimates have more explanatory power, the non-response rate to the elicitation question is lower, and respondents are more engaged.  A further finding provides evidence that individuals have differing information requirements, and hence standardised information sets may not be suitable in CV.  However, according to the debriefing questions, MS adjusted information to individual needs better than interviews.  Although previous research has avoided using WTA due to high mental demands, protesting and strategic bidding, the questionnaire design used in this study resulted in both MS and interview respondents reporting valid WTA bids.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Beyond rationality, towards reasonableness: Deliberative monetary valuation and Amartya Sen’s approach to rationality

Economic valuation is often deemed an important source of information for land-use policy. Stated preference methods (SPM) are a particularly potent class of economic valuation methods, but they are also particularly controversial. In response to accumulating criticism of SPM, deliberative monetary valuation (DMV) has been proposed as an alternative approach. DMV has gained considerable attention in recent years—however, being a combination of elements from neoclassical economic theory and from the theory of deliberative democracy, it lacks a consistent theoretical foundation, especially regarding rationality assumptions. In our paper, we aim at closing this gap and propose to found DMV on Amartya Sen’s approach to rationality. We show that his approach fits well the motivation for engaging with DMV and discuss its implications for the practice of DMV

Valuing water level changes in reservoirs using two stated preference approaches: An exploration of validity

The combination of travel cost (TCM) and contingent behaviour (CB) methods is a relatively new research avenue in the recreational valuation community. Contrary to simple TCM applications, TCM-CB facilitates the ex ante valuation of marginal welfare effects resulting from environmental quality or quantity changes, similar to the contingent valuation method (CV). Even though TCM-CB is highly policy relevant, i.e. to inform changes in management regimes at recreational sites, the validity of estimates has hardly received any attention and little is known about the performance of TCM-CB compared to CV. In this paper, TCM-CB and CV are explored with respect to several validity tests in a case study on the recreational effects of water level changes in a reservoir. Overall, the findings reveal that TCM-CB and CV perform equally well in terms of theoretical validity, but that the marginal recreational value varies significantly between the two methods. We also observe that both methods face similar internal difficulties with respect to the stability of values when the order of a set of valuation questions is changed

Valuing water level changes in reservoirs using two stated preference approaches: An exploration of validity

The combination of travel cost (TCM) and contingent behaviour (CB) methods is a relatively new research avenue in the recreational valuation community. Contrary to simple TCM applications, TCM-CB facilitates the ex ante valuation of marginal welfare effects resulting from environmental quality or quantity changes, similar to the contingent valuation method (CV). Even though TCM-CB is highly policy relevant, i.e. to inform changes in management regimes at recreational sites, the validity of estimates has hardly received any attention and little is known about the performance of TCM-CB compared to CV. In this paper, TCM-CB and CV are explored with respect to several validity tests in a case study on the recreational effects of water level changes in a reservoir. Overall, the findings reveal that TCM-CB and CV perform equally well in terms of theoretical validity, but that the marginal recreational value varies significantly between the two methods. We also observe that both methods face similar internal difficulties with respect to the stability of values when the order of a set of valuation questions is changed.Water levels changes Contingent valuation Contingent behaviour Travel cost method Validity Count data model

Can you be bothered? The role of participant motivation in the valuation of species conservation measures

Group-based approaches to the elicitation of stated preferences are considered particularly suitable for valuing unfamiliar or complex environmental goods. While such exercises provide participants with detailed information and time to think and deliberate, they require a considerable degree of motivation from the respondents. Effects of motivation on willingness to pay (WTP) tend to be ignored within the valuation research community, although similar effects have been reported in psychological literature. In this study, a novel approach using video recordings and behaviour coding of participants in group-based Market Stall meetings was employed to measure motivation as well as its impact on WTP and the theoretical and convergent validity of stated WTP. Indicators of motivation correlated significantly with both WTP statements and their validity, with more motivated individuals stating higher and more valid bids. These findings suggest that the recognition of motivation is an important novel element of research into stated preferences, particularly with respect to usefulness and quality of WTP measures.butterflies, conservation, motivation, Market Stall, stated preference techniques, validity, willingness to pay,

Valuing wilderness in Iceland: Estimation of WTA and WTP using the market stall approach to contingent valuation

This study reports an application of the contingent valuation method (CV) to estimate the environmental costs and benefits of hydro-scheme developments in an Icelandic wilderness area. Property rights for wilderness are ambiguous in Icelandic law and society. Preliminary research suggested a general view that there was no right to develop the wilderness hence it was necessary to estimate WTA compensation for people wishing to preserve the wilderness and WTP for those in favour of hydro-scheme development. A new deliberative group-based approach to contingent valuation, called the market stall (MS) approach, is applied to achieve this as it provides members of the public the opportunity to discuss and learn about the environmental change, to consult with family and friends, and to reconsider their WTP or WTA. Mean WTA was 780,107 Kr (Krona), and mean WTP for the scheme was 21,326 Kr.(1) Based on a range of validity tests MS performed well: non-response rate was low, strategic bidding was almost absent, information was found to suit individual needs, and both WTP and WTA could be explained by relevant socio-economic variables

Guidance for deliberative monetary valuation studies

There is growing demand for more pluralistic valuation approaches, for which Deliberative Monetary Valuation (DMV) is suitable. Guidance is needed for valid and reliable DMV application, as exists for conventional willingness to pay studies using stated preference methods. The purpose of this paper is to develop a set of minimal requirements for study design and reporting aimed at DMV practitioners, based on the existing DMV literature as well as related social science literatures. The core contribution of our paper is the practical recommendations for DMV study design focusing on the deliberation process and elicitation format, analysis of the deliberation and willingness to pay results, and validity. We summarise reporting requirements for reliability, before offering conclusions and suggestions for promising future research directions

Contingent Valuation: Comparing Participant Performance in Group-Based Approaches and Personal Interviews

This paper reports a Contingent Valuation application to estimate the non-market costs and benefits of hydro scheme developments in an Icelandic wilderness area. A deliberative group-based approach, called Market Stall, is compared to a control group consisting of conventional in-person interviews, in order to investigate flaws of Contingent Valuation, such as poor validity and protest responses. Perceived property rights suggested the use of willingness-to-accept in compensation for wilderness loss and willingness-to-pay for hydro scheme benefits. The study is novel as it applies participant behaviour observation to gain insights into the shortcomings of conventional data collection modes. Main drawbacks with in-person interviews were found to be low motivation, standardised information and time pressure which hindered individuals from carefully considering their preferences. Market Stall performed better in the study: welfare estimates were more easily explained by socio-economic variables, the non-response rate was lower, and respondents were more engaged. Our research findings also suggest that participant behaviour can be used to supplement conventional validity tests.Contingent valuation, preference construction, Market Stall, wilderness, motivation