Annual Mean Willingness To Pay Research Articles

Expand, relocate, or underground? Social acceptance of upgrading wastewater treatment plants.

Securing a moderate level of social acceptance for obnoxious facilities, public facilities that have negative effects, such as odors, noise, or other disruptions, is critical to infrastructure plans. For wastewater treatment plant (WWTP), also obnoxious facilities, upgrading and expanding the capacity of existing WWTP, are more important than the construction of new plants, in some regions. This study analyzes and compares the social acceptance of different types of WWTP upgrades and capacity expansion projects. Contingent valuation method is used to elicit South Korean households' willingness to pay (WTP) for preventing the expansion of a WWTP. The aggregated WTP is interpreted from the perspective of social conflict costs. The results show that the annual mean WTP of South Korean households to prevent WWTP expansion ranges from KRW 32,058 (US $27.61) to KRW 45,793 (US $39.44) depending on spatial location, which implies that the social conflict costs for the WWTP expansion in South Korea are considerable. It is also found that an underground WWTP at current site is a best alternative to lower the social conflict costs; it is even better than relocation an existing WWTP to another area. Several related policy implications are provided based on the analysis results.

Valuing Preferences for Water Quality Improvement in Urban Area: a Case Study in To Lich River, Hanoi, Vietnam

The purpose of this study is to estimate residents’ Willingness to Pay (WTP) for the water quality improvement along To Lich river. A case study was implemented on six Hanoi’s districts locate along the river. The empirical results from a double-bounded dichotomous choice contingnet valuation method reveal that the expected annual mean WTP for improving the water quality was VND 202,560 per person (US $8.6). In bivariate probit model, we find that the variable health concern and income were statistically significant with positive sign. Meanwhile, the variable age appears to have negative effect on the WTP. This means that the respondents with health concerns and higher income would have more interests in the WTP and younger respondents tend to have higher willing to pay for the water quality improvement. This paper can provide useful information for sustainable water resource management in Vietnam.

Willingness to Pay for Enhanced Water Security in a Rapidly Developing Shale Gas Region in China

With the rapid development of shale gas exploration (SGE) in China, there is an urgent need to evaluate the public’s preferences with respect to the environmental risks that go along with the exploration, which have not yet been studied in the literature. This study aims to estimate local residents’ willingness to pay (WTP) for a water security-enhanced scenario in the Fuling shale gas field, Chongqing, China. Using the double-bounded contingent valuation method, we estimate that the annual mean WTP is 32.655 Chinese yuan per year per household, which accounts for 3.80% of the basic household gas bill. The results also show that WTP is significantly influenced by the socio-economic characteristics of the respondents, including the age of the respondent, household location, household income, and primary source of household income. Moreover, the respondents’ satisfaction with respect to the environmental impacts caused by SGE also has negative influences on the WTP. Thus, our analysis estimates the affected public’s benefits during SGE and provides insight into the relevant policymaking process.

Comparing the validity of the payment card and structured haggling willingness to pay methods: The case of a diabetes prevention program in rural Kenya

BackgroundThe objective of this study was to compare the theoretical validity of two willingness-to-pay (WTP) methods, the commonly used payment card (PC) and the recently developed structured haggling (SH), for estimating the potential benefits of a diabetes prevention program in rural Kenya. MethodsA convenience sample of adult residents from a rural county in Kenya (Kiambu), with no history of diabetes, was randomly assigned to one of two WTP methods, PC or SH, using structured face-to-face interviews from December 2011 to February 2012. ResultsA total of 376 respondents completed the interviews using PC (n = 185) or SH (n = 191). More than 95% of respondents were willing to pay something for program access. The study showed that both methods were feasible in rural Kenya. SH resulted in a higher annual mean WTP than PC, Ksh504.05 (US$7.25) versus Ksh619.95 (US$5.90), respectively (p < 0.01). Based on theory, it was hypothesized that certain predisposing factors would result in greater WTP. Greater socio-economic status (measured using income proxies) resulted in greater unconditional WTP for both the PC and SH groups (t-tests and bivariate correlations) and conditional WTP (GLM models). GLM for PC showed being male, employed and having distant relatives with diabetes were significant predictors for WTP, while for SH being educated, employed and owning a vehicle were significant predictors. ConclusionBoth PC and SH showed theoretical validity in rural Kenya. However, the use of SH over PC in rural Kenya may be the better choice given that SH more closely mirrors marketplace transactions in this setting and the use of SH resulted in more significant variables in the GLM models.

The preservation value of the Bangudae Petroglyphs, the 285th Korean National Treasure

Abstract This study attempts to assess the economic benefit of preserving the Bangudae Petroglyphs (BP), which is suffering from repetitive submersions by the Sayeon reservoir, a source of the municipal water for Ulsan, Korea. To this end, the contingent valuation (CV) method is applied. Specifically, a combination of one-and-one-half-bound dichotomous choice model and spike model is used to reduce the potential for response bias while maintaining much of its efficiency, and to deal with the zero willingness to pay (WTP) data. Moreover, we consider the scale parameter in the CV model to reflect the geographical heterogeneity between Ulsan area and other Korean areas. The annual mean WTPs per household for the two areas were estimated to be KRW 988 (USD 0.84) and KRW 1833 (USD 1.55), respectively.

Household preferences and willingness to pay (WTP) for freshwater quality improvement in Pakistan’s Swat River Valley

This two-part study investigates household preferences and willingness to pay (WTP) for water quality improvement of the Swat River in Pakistan. First, a four-point Likert scale was used to rank preferences for water quality benefits without using any financial metric. Results show that households have comparatively strong preferences for non-use benefits. Second, a contingent valuation question was designed to determine WTP for adopting a management plan developed exclusively for water quality improvement in the Swat River. The estimated annual mean WTP per household for water quality improvement is $2.40 when donating to an NGO. Generalizing this value to households living in Swat Valley would generate up to $544,000 per year. The present value aggregate benefit for 15 years would be sufficient to cover the present value of aggregate costs to adopt the management plan. A mandatory program that would require paying for the management plan generates half the WTP compared to the voluntary plan, but is still sufficient to cover costs and may be more feasible than a voluntary program because payment is assured.

The public׳s willingness to pay for securing a reliable natural gas supply in Korea

With the increasing importance of natural gas (NG) in the energy mix, the search for a reliable liquefied NG (LNG) supply has received great attention along with energy security in Korea. However, the current level of LNG supply reliability in Korea is much lower than that in other industrialized countries. In order to improve the reliability of the LNG supply, diverse policy measures are required, which come at an additional cost paid by society. This study aims to investigate the public׳s willingness to pay (WTP) for improving the reliability of the LNG supply by increasing the LNG storage rate from the current level (11%) to 20%. To this end, the contingent valuation (CV) method is applied by using national survey data of 1000 households. In particular, this study employs a one-and-one-half-bound (OOHB) dichotomous choice model, combined with a spike model, to address the responses from the CV survey with zero WTP. The annual mean WTP is estimated to be KRW 9641 (USD 8.68) per household. Expanding the value to the national population provides a value of KRW 169.43 billion (USD 152.55 million). The results indicate that people are willing to shoulder the burden of safeguarding a reliable supply of LNG.

Valuing telecare using willingness to pay from the perspective of carers for people with dementia: a pilot study from the West Midlands

We carried out a cost-benefit analysis of the STAY telecare service (Sandwell Telecare Assisting You) for unpaid carers of people with dementia in the West Midlands. This was done from the perspective of the carers. We employed the willingness to pay (WTP) approach, an established economic method to quantify the benefits of healthcare. A questionnaire was given to 87 unpaid carers of people with dementia, and 34 completed questionnaires were returned (39%). Two WTP question designs were used (open-ended and bounded style). The annual mean WTP for telecare was £242-310 per person. Carers offered higher values if the cared-for person was suffering from moderate dementia. Carers offered WTP values that were similar to the resource costs of providing telecare services. The pilot study suggests that the provision of telecare for unpaid carers of people with dementia is beneficial to society.

The public's value of hydrogen fuel cell buses: A contingent valuation study

With the increasing interest in global warming, there has been intense international competition with regard to the introduction of the hydrogen (H2) fuel cell (FC) bus, which represents a promising solution for the low-carbon age. With respect to the investment in H2-based technology development and the expansion of H2 FC vehicles, the consumer attitude is a crucial factor because the Korean government will consider it one of the most important factors in its decision to approve a large-scale introduction of H2 FC buses. In this regard, this study measures the public's willingness to pay (WTP) for a large-scale introduction of H2 FC buses in Korea by employing a survey approach termed the contingent valuation. Furthermore, to enhance statistical efficiency, this study employs the one-and-one-half-bound dichotomous choice method. The annual mean WTP estimate was KRW 4230 (USD 4.55) per household as of 2007. The estimate of the annual benefits to the affected residents was KRW 32.3 billion (USD 34.7 million). The results of this study are expected to be helpful in policy decisions related to the introduction of H2 FC buses and investment in H2 technology development.

Estimating Ecological Value of Small Hydropower Using Contingent Valuation Method: An Application to Tongjiqiao Reservoir in Zhejiang Province, China

Abstract The small hydropower (SHP) will be less competitive in the absence of environmental value. The lack of information has become an important obstacle challenging decision-makers in resource-use choices. This paper is an application of contingent valuation method (CVM) in rural China to estimate the willingness- to-pay (WTP) for environmental services provided by exiting hydropower station. Using the single-bounded and dichotomouschoice CVM, the ecological value of Tongjiqiao Reservoir (TJQR) is estimated, and the annual mean WTPs of single-bounded and double-bounded CVM estimation are 141.05 and 219.52 Yuan (RMB)/a, respectively. The 95% confidence interval of annual WTP on an average is 118.47, 166.79 Yuan (RMB)/a and 204.41, 236.22 (Yuan RMB)/a, respectively. In contrast, double-bounded model could obtain much more information of WTP of the investigated, thus reducing the confidence interval of estimation, and enhancing the estimation accuracy of the WTP. According to the estimated mean WTP of the double-bounded CVM, the total ecosystem service value of the TJQR is 15.54 million Yuan (RMB). Compared with the conventional electricity of fossil power and large hydropower, the SHP will be less competitive in the absence of non-market value, ignoring that the environmental impacts of existing SHP will undermine the healthy development of clean energy sector.

Morbidity costs associated with ambient air pollution exposure in Sao Paulo, Brazil

In 2007 we conducted a contingent valuation survey in Sao Paulo, Brazil, to estimate the population's willingness–to–pay (WTP) to avoid one hospital admission (HA) and one emergency–room visit (ER) due to respiratory diseases in adults and children younger than 5 years old; and cardiovascular diseases in adults only; both associated with atmospheric air pollution. Our annual mean WTP estimates are €81.82 (adult) and €137.92 (child) for HA; €48.40 (adult) and €90.66 (child) for ER due to respiratory diseases; €53.57 (ER) and €90.08 (HA) for cardiovascular diseases. Our results suggest altruism towards children, and a strong income effect on WTP. Results will help analysts evaluating the health benefits of specific policies with potential air pollution impacts in Sao Paulo, Brazil.

WILLINGNESS TO PAY FOR GMO LABELING POLICIES: THE CASE OF KOREA

ABSTRACTWith the increasing interest in food safety, genetically modified organisms (GMO) have been a topic of intense public debate. To provide a basis for rational debate and develop an appropriate GMO labeling policy, the Korean government is interested in consumer attitudes and responses to GMO labeling policies. In this light, by employing a survey approach that is called “contingent valuation,” the present study attempted to measure the public's willingness to pay (WTP) that are more stringent than the prevailing policies in Korea. Furthermore, in order to enhance statistical efficiency in WTP estimation and reduce the response effect in the context of WTP elicitation, this study employed a one‐and‐one‐half bound dichotomous choice format. The estimate of the annual mean WTP for GMO labeling policies is 3,756 Korean won (USD 4.04) per household. This quantitative information can be utilized in developing policies related to genetically modified foods.PRACTICAL APPLICATIONThe contingent valuation in this article provided a powerful tool for measuring the public's willingness to pay for genetically modified organisms labeling policies.

Are We Willing to Pay Enough to `Back the Bid'?: Valuing the Intangible Impacts of London's Bid to Host the 2012 Summer Olympic Games

Using a contingent valuation survey, this paper provides the first empirical test of the proposition that intangible impacts might justify hosting major sporting events on cost—benefit grounds. Respondents, drawn from London, Manchester and Glasgow, were asked for their willingness to pay (WTP) to host the 2012 Olympic Games in London on the basis of the intangible impacts that this event might provide. Annual mean WTP is £22, £12 and £11 per year (for 10 years) in these 3 UK cities respectively. An illustrative total (UK) WTP for intangible impacts is in the region of £2 billion. Statistical analysis of WTP determinants reveals a range of plausible explanatory factors such as respondents' degree of support for the bid.

Estimating Willingness to Pay for Reduced Copper Contamination in Southwestern Minnesota

The contingent valuation method is applied to determine how much consumers would be willing to pay to reduce copper in their drinking water and what factors influence their willingness to pay (WTP). The annual mean WTP per household was estimated using survey data from nine counties in southwestern Minnesota where copper contamination is high. The annual mean WTP per household varied from a low range of $30.41 to $43.61 for Chippewa County to a high range of $39.79 to $57.06 for Nobles County. The aggregate WTP for all nine counties was estimated to range from $1.66 to $2.38 million. However, the estimated WTP may not be sufficient to pay the cost of providing improved water through public water systems for small communities in southwestern Minnesota.