Application Of Contingent Valuation Method Research Articles

Consumers’ willingness to pay for antibiotic-free chicken meat: application of contingent valuation method

Consumers’ willingness to pay for antibiotic-free chicken meat: application of contingent valuation method

Rural household's willingness to pay for irrigation water use: An application of contingent valuation method, in the case of North Shewa zone, Ethiopia

AbstractThis study aimed to evaluate household's willingness to pay (WTOP) for irrigation water use (IWU) per timad (0.25 ha) of the irrigable land per year and to analyze determinants of WTOP for IWU at individual households based on the contingent valuation method (CVM). The primary data collected for this study was from 120 households using two‐stage sampling techniques such as simple random sampling and purposive from four peasant associations of the Efratana Gidim and Kewit districts by semistructured questionnaire. The secondary dataset was collected from several sources. The collected data were analyzed using descriptive, inferential, and Tobit econometric models. In addition, a seemingly unrelated bivariate probit (SUBP) model was applied to calculate the average WTOP for IWU per timad/year. The CVM survey indicated that from the total sample collected data, 80% of the households showed WTOP for IWU, while the remaining 20% did not show WTOP. The econometric result of the Tobit model showed that the education level of the household, household family size, Irrigation experience, total annual income, and credit utilization influenced farmers' WTOP positively and significantly, while only initial bid price affected the farmer negatively and significantly. Hence, the above variables should be given high emphasis in designing irrigation water‐related projects in the districts. The SUBP model result revealed that the household's average annual WTOP was 854.74 Ethiopia Birr/0.25 ha/year. The estimated MWTOP for IWU is a huge amount of money. Hence, the concerned body has to collect money from households, which has to be used in the development of irrigation systems in the study area. This study recommends that different stakeholders of government should collaborate in raising revenue from the local community and apply it for the desired community development purposes, particularly for food security enhancement as the districts are highly dependent on rainfed agriculture.

Determinants of Residents’ Willingness to Pay for Water Quality Improvements in Haikou, China: Application of CVM and ISM Approaches

Exploring the determinants of residents’ willingness to pay (WTP) for water quality improvements is essential for protecting the water quality and formulating effective governance policies. This paper applies the double-bounded dichotomous contingent valuation method (CVM) to determine residents’ WTP for water quality improvements, calculate the average annual willingness of Haikou residents to pay for water quality improvements, and explore the factors influencing residents’ WTP for water quality improvements. Interpretive structural modeling (ISM) is then used to further analyze the association and hierarchy between the influencing factors. The results show that (1) Residents are willing to pay an average of 28.42 RMB/household/year for water quality improvements, and the total annual value of water quality improvements in Haikou is at least 5.58 × 108 RMB; (2) age, education level, income level, minor family member and government trust are the main factors that significantly (p < 0.05) influence urban residents’ WTP; (3) among the factors identified as significantly affecting WTP, the deeper root factors include educational attainment, age, and ultimately, the willingness of residents to participate in water quality improvements through indirect factors (government trust, income level, presence of minors). This study allows an in-depth and detailed understanding of the determinants of residents’ WTP for water quality improvements and provides a practical and relevant guide to water quality improvements in the tropics.

Economic Valuation of Forest Resources from Drinking Water Customers’ Point of View: a Contingent Valuation Method Application

One of the steps taken to maintain and rehabilitate forest resources is to raise conservation funds from drinking water customers, which can be packaged in an environmental services payment scheme or PES. By taking the case of forest resource management in Central Lombok Indonesia, this study used the Contingent Valuation Method to find possible willingness to pay of drinking water customers for environmental service contributions. This study found that the willingness to pay (WTP) of drinking water customers for environmental service contributions that reflecting the economic valuation of Central Lombok Forest resources was an average of Rp. 3,260 (0.23 USD) per month. Factors that influence the magnitude of such values are The Level of Education, Income, Number of family members, and environmental awareness.

Economic Valuation of Forest Resources from Drinking Water Customers' Point of View: a Contingent Valuation Method Application

Economic Valuation of Forest Resources from Drinking Water Customers' Point of View: a Contingent Valuation Method Application

Application of the Contingent Valuation Method in Water Resources Protection

Abstract The option of using the contingent valuation method (CVM) to assess residents’ willingness to pay (WTP) for upgrading the quality of water resources in their communes is discussed in the article. Surveys were conducted using the direct interview method. The analysis included the application of CVM to examine the potential for financing projects that are focused on reducing the eutrophication process of the Baltic Sea, financing the construction of municipal sewage treatment plants in selected communes in Greece and Poland and financing the upgrade of sewage disposal and treatment standards in Śniadowo in north-eastern Poland. For authorities of a given area, the CVM is an instrument supporting the decision-making process regarding investments in water resources’ protection.

자연기반 치유관광의 가치평가에 대한 비교분석 - CVM(가상가치평가법)과 CE(선택실험법)을 적용 -

자연기반 치유관광의 가치평가에 대한 비교분석 - CVM(가상가치평가법)과 CE(선택실험법)을 적용 -

Households Willingness to Pay for Improved Water Services: The Case of Burayu Town Administration: Application of Contingent Valuation Method

This study is initiated by the current deep rooted problem of improved water supply prevailing in Burayu town and its primary objective is to estimate mean willingness to pay of households using contingent valuation method. A total of 239 sampled households are interviewed in person. A single bounded closed ended followed by open-ended format were used to elicit willingness to pay for improved water. Of 217 respondents 160(73.3%) accepted bid values of improved water provided to them. The data was analyzed both in descriptive and econometric models. The probit and tobit models were used for empirical analyses. In closed ended format, the households’ mean willingness to pay for one Jeri can of improved water was 31.5 cents and 42.7 cents in open ended format. Households characteristics’ such as age, income, occupation and education are positively determine the probability of accepting the given bid value of improved water. The bid value, dummy variables such as source of water, quantity and quality negatively affect the willingness to pay for improved water in probit model. Those variables affecting the likely of willingness to pay positively also have the same sign in tobit model of determining the maximum willingness to pay. The aggregate willingness to pay of households was estimated to be 1613942.62 birr per month. The current average revenue of the town’s water supply and sewerage enterprise is estimated to 515009.95 birr for one per month. The study revealed that households are willing to pay more of the current tariff blocks for improvement. Therefore if the improvement scenario comes to effect in one way it solves the shortage of improved water problems in the other way the town’s water supply and sewerage enterprise can collect more revenue from service charges. Keywords: Willingness to pay, Contingent valuation, Use value and Non-use value. DOI: 10.7176/JESD/11-3-01 Publication date: February 29 th 2020

Households' Willingness to Accept Improved Ecosystem Services and Influencing Factors: Application of Contingent Valuation Method in Bashang Plateau, Hebei Province, China

The Bashang Plateau, which is an ecologically fragile agro-pastoral zone in Hebei Province in China, plays an important role in protecting the Beijing-Tianjin-Hebei region from wind and sand erosion. Over the last four decades, it has been the target of extensive afforestation campaigns to promote improved ecosystem services. Though the benefits and costs of afforestation and its effectiveness within forestry have been widely investigated, few studies have focused on local households' willingness to accept (WTA) compensation relating to afforestation policies. Moreover, despite their importance in ensuring effective afforestation policies, the factors influencing WTA values have seldom been examined. We administered a direct questionnaire survey of households on the Bashang Plateau and applied a contingent valuation analysis to estimate their WTA values for compensation associated with ecological protection policies. We obtained 249 valid questionnaires, evidencing a high response rate (92.22%). New indicators of factors influencing respondents' WTA has been conducted including social, economic and ecological aspects, especially the improvement of ecological factors which consists of respondents' perceptions regarding the importance of ES and their satisfaction levels, and other environmental awareness factors. Additionally, in the case where many studies performed only one single regression analysis, this study performed a two-stage regression analysis and compared the results with those obtained using the Tobit model. A reasonable compensation standard facilitates a positive relationship between economic development and protection of natural environments. The findings showed that a certain amount of compensation (approximately 477.91 CNY/mu/year) was likely to prompt households' participation in afforestation projects. Compared with compensation standards for other ecological projects, the reported standard for afforestation projects on the Bashang Plateau is low, indicating that there is room for improvement. High annual household incomes are a key factor influencing households' WTA regarding their participation in afforestation activities. The results also revealed households’ environmental awareness. Among respondents who participated in afforestation, those who valued forests for protecting environments and improving ecosystem services opted for lower compensation amounts. Our findings contribute valuable inputs for formulating ecological compensation standards and can serve as a reference for analyses of WTA and factors that drive it in other similar economically backward and ecologically fragile regions.

Contingent Valuation of Environmental Goods: A Comprehensive Critique, edited by DanielMcFadden and KennethTrain. Published by Edward Elgar Publishing, Cheltenham, United Kingdom, 2017, pp. 319, ISBN: 978‐1‐78643‐468‐5, AU$210.

Contingent Valuation of Environmental Goods: A Comprehensive Critique, edited by DanielMcFadden and KennethTrain. Published by Edward Elgar Publishing, Cheltenham, United Kingdom, 2017, pp. 319, ISBN: 978‐1‐78643‐468‐5, AU$210.

Urban Water Body Recreational Development and Revitalizing Program in Sri Lanka: Public Perception and Willingness to Pay

Urban water body recreational areas add varied socio- economic and environmental benefits to the urban lives. This study explores public perception and their willingness to pay for open water area recreational development at Sri Jayewardenepura Kotte, Sri Lanka. A total number of 300 questionnaire surveys were carried out with users and non users of the recreational area. The monetary value of urban water front development was gauged by the contingent valuation method using payment card approach. Enjoying peace and relaxation, taking children to play and breath clean air were mentioned as most important aspects of open water body areas. More frequent visits occur to enjoy peace and relaxation, breath clean air and enjoy the natural landscape. Almost all the participants were agreed upon conserving open water body areas in urban settings. Willingness to pay was significantly associated with income and occupation status. It yielded a monthly average payment of Rs. Rs.446.93 per household for another five years time. There were 33 percent of zero bids. Limited budget was the main reason for not willing to pay. This study indicates the applicability of contingent valuation method in valuing economic value of non market goods in developing countries. The findings could assist future open water body development and conservation and argue the need of considering community views and expectations in relevant public spaces and policies. This paper is significant as there is no contingent valuation method study has been carried on water body development in Sri Lanka.

Farmers' Willingness to Pay for Improved Soil Conservation Practices in Kuyu Woreda, North Shoa Zone of Oromia, Ethiopia : Application of Contingent Valuation Method

Farmers' Willingness to Pay for Improved Soil Conservation Practices in Kuyu Woreda, North Shoa Zone of Oromia, Ethiopia : Application of Contingent Valuation Method

Pick a number, but not just any number: valuation uncertainty and maximum willingness to pay

ABSTRACTEmpirical results suggest that contingent valuation method (CVM) respondents are uncertain of their valuations, which has led critics of the method to raise issues about its validity. Alternative approaches to resolve the problem have been proposed, involving different willingness to pay (WTP) response formats allowing respondents to explicitly express uncertainty. This paper compares differences between certain and uncertain responses for four different response formats. The results suggested that mean and median (WTP) were not significantly different for respondents who were certain about their valuations. This was generally not the case for respondents who were uncertain about their valuations. However, the median WTP was not found to be significantly different for uncertain and certain respondents. A conclusion for a standard CVM application is that the sample median WTP value could serve as a proxy measure of population maximum mean WTP when uncertainty has been removed.

Urban Solid Waste Management in Itanagar Municipal Area of Arunachal Pradesh – An Application of Contingent Valuation Method

Urbanisation is a phenomenon which is a part and parcel of economic development. Simon Kuznets (1966) in his Nobel Prize winning work on measurement and analysis of historical growth of national income of developed countries identified high rate structural transformation as one of the six basic characteristics of modern economic growth. Urban development is no doubt a natural outcome of economic development but it has a number of adverse effects. For example, the rapid urbanization may lead to the rapid growth of slum settlements, informal sectors as well as environmental problems like solid waste accumulation etc. The management of Municipal Solid Wastes (MSW) in most of the urban areas is a serious concern for many of the developing countries which requires immediate attention of both Government and the public. The paper attempted to estimate the per capita waste generated in Itanagar municipality area based on primary data. Itanagar, The capital of Arunachal Pradesh is a newly growing town in hilly area. This paper also attempted to estimate the willingness to pay among the respondents of Itanagar municipality area. A contingent valuation method (CVM) was used to identify the determinants of willingness to pay (WTP). Interestingly, the result showed that educational attainment of the respondents, income of the households, years of living in the place and environmental awareness were positively and significant affects the maximum willingness to pay (WTP) for an improved solid waste management in the study area. Finally, the paper suggests a few policy measures based on field survey.

Valuing environmental management practices through contingent valuation. A review of recent applications

The aim of this paper is to analyse empirical application of contingent valuation method to assess environmental management practices in order to: 1) contribute to an understanding of the importance that intangible aspects have for the assessment of environmental management practices; 2) identify gaps that lead us to propose actions to guide future research in this field. A literature review of scientific production in international journals for the period 2000-2011 has been undertaken. Some of our findings show that: empirical applications are scarce and even more so if they focus in projects promoted by the business sector; there are no longitudinal studies that could facilitate application of contingent valuation method in the private business sector; and only a small number of the studies analysed apply the results to measuring the performance of the proposed project through a cost-benefit analysis.

Investigating Willingness to Pay to Improve Water Supply Services: Application of Contingent Valuation Method

Safe water supply is one of the important Millennium Goals. For development of market water supply services, the willingness of consumers to pay is essential. The consumers’ willingness to pay (WTP) for piped water supply using the contingent valuation (CV) method with different starting point bids was investigated for the Pavlodar Region, Kazakhstan. The results showed that households with access to groundwater (well or borehole water users) perceived this as of good quality. Consumers without access to groundwater used open-source, standpipe or delivered water for which they had to travel and spend time or to pay. Open source water and standpipe water quality was perceived as bad or satisfactory. More than 90% of the consumers were willing to pay for better water quality and regular water supply. The mean WTP was estimated to be about 1120 in bids and about 1590 KZT per household per month in open-ended question format (150 KZT is ~1 USD as of January 2012). The results can be used to better identify the proper technological choice and the level of service to be provided making rural water projects both sustainable and replicable at a larger scale.

Floodplain Inundation Analysis Combined with Contingent Valuation: Implications for Sustainable Flood Risk Management

This study presents the results of open-ended contingent valuation method (CVM) to estimate the residents’ maximum willingness to pay (WTP) for flood insurance and structural flood control measures in the Neka River Basin in Northern Iran. Flood inundation analysis and floodplain risk mapping were conducted by applying the HEC-RAS model combined with GIS analysis. A calibrated 100-year flood risk inundation map was considered as a basis for this research. This paper demonstrates applicability of CVM combined with flood inundation analysis to understand public participation for flood risk management, and their perception of flooding, considering associated socioeconomic and environmental factors. The results have shown that stated WTPs significantly varies with household income, distance people live from the river and the land use type of properties. Findings of this study suggest that the majority of respondents view flood hazard as the most important natural disaster. Furthermore, WTPs are significantly higher for those who have high level of flood risk perception. Three policy options for flood risk management are discussed, which include flood zoning and land use regulation, flood insurance program, and structural measure of levee construction. The advantages and disadvantages of each option are explored. It was concluded that a combination of possible mitigation options should be considered in order to achieve sustainable flood risk management in the Neka River Floodplain.

Use value of cultural experiences: A comparison of contingent valuation and travel cost

Few applications to assess the value of cultural experiences exist. This is particularly frustrating for cultural institutions, as it provides them with few opportunities to reveal their importance in terms of attractiveness and thus what drives tourism demand. This study applies the travel cost method (TCM) and contingent valuation method (CVM) to assess the value of two rural cultural institutions in order to compare the results of the valuation methods.The results reveal that visitor experiences consist of a core cultural experience as well as other valuable experiences before and after. Whereas CVM allows for a valuation of the core cultural experience separately from other experiences, the TCM is limited to an overall assessment. The TCM is therefore an inappropriate measure of the value of the cultural experiences when the total experience includes several other experiences.If visitors travel for the sake of only one cultural experience, TCM may be preferable due to its simple applicability and cost efficiency. If, however, as is most often the case, a cultural experience is part of a bundle of experiences, the application of CVM is recommendable. This is also the case, if only visitors who state the cultural experience to be the primary reason for travelling are included.

Study on the Application of CVM in the Social Benefits Valuation of Urban Mass Transit

The total social benefits of urban mass transit consist of determined and undetermined benefits. Traditional methods of market valuation can be used to assess the determined benefits, including savings in parking costs, energy conservation etc. However, the undetermined benefits, such as increased economic productivity as a result of improved mobility, are difficult to be estimated by using the traditional methods. The Contingent Valuation Method (CVM) represents a more encompassing alternative that can capture both determined and undetermined benefits. CVM is applied to valuate the social benefits of Shanghai's urban mass transit. The valuation result shows that the social benefits brought by urban mass transit system in the city of Shanghai are about 70.774-99.461 billion RMB per year. Meanwhile, the result is tested with the econometrics method. This study indicates that CVM can overcome the shortcomings of the traditional market valuation method. Furthermore, CVM provides a scientific way to evaluate the total social benefits of urban mass transit.

Measuring the economic benefits of an environmental monitoring satellite project: The value of information approach

This paper reports a first application of contingent valuation method to measure the value of information generated by earth science data from an environmental geostationary satellite payload called Geostationary Environmental Monitoring Satellite. The purpose of the space project is to improve the accuracy of air pollution information by enhancing air pollution monitoring and forecasting system coupled with conventional ground level monitoring stations located throughout South Korea.Estimation results based on a survey data of 1000 households show that most explanatory variables including bid amounts and household income significantly influenced dichotomous choice contingent valuation responses with expected signs. When applied to the whole sample, mean willingness to pay reflecting both use and non-use values was stable at around $3.70 per year for the improvement of air quality information. Present values of total benefits over the lifetime period of the space satellite exceed the cost born by tax payers with a benefit-cost ratio of 2.77. The result of this study clearly suggests that contingent valuation method can be used as an alternative approach in measuring the value of information from a space-derived earth science project.