Bequest Values Research Articles

The role of financial literacy when informal caregivers make complex financial decisions

ABSTRACT Informal caregivers are accepting more responsibility for making financial decisions for older people with cognitive impairment. Paying for nursing home accommodation is a complex financial decision in Australia. Residents can make a lump sum payment, daily payment, or a combination of both. Due to government means-testing, the choice can impact the resident’s income, assets, bequest values, and how much they pay for their aged care services. We examined the relationship between the financial literacy of informal caregivers and the accommodation payment decision. We collected data using an Australia-wide survey of informal caregivers that either made or substantially influenced the accommodation payment decision. Using the ‘Big Three’ questions and self-assessed financial literacy, we found that less than half of respondents were financially literate. Greater financial literacy was significantly associated with reduced decision complexity and greater decision certainty, but this relationship was moderated by nursing home behaviour and perceived time available for decision-making. Whether a nursing home suggested consulting a financial adviser, expressed a payment type preference or informed caregivers about their decision-making time period, predicted financial adviser use and the perceived complexity and certainty of decision-making.

The values of cultural goods and cultural capital externalities: state of the art and future research prospects

Cultural economics has largely looked toward environmental economics and used non-market valuation techniques such as contingent valuation to estimate the total economic value of cultural goods. These methods are well suited to the valuation of cultural heritage goods, where the benefits are mostly related to the level of supply and mainly take the form of existence and bequest values. This stands in contrast to cultural institutions such as theatres, libraries, exhibitions, and concerts, where the value is produced, when the goods are consumed. For this type of cultural goods, I suggest that cultural economics rather turn to find inspiration in the economics of education. The value of schooling can be divided into private returns and social returns (human capital externalities). Likewise, the value of cultural consumption can have a private and a public component, where I suggest labeling the public component cultural capital externalities. The idea is that when private consumption of arts and culture is taking place, the individual will accumulate cultural capital. This accumulated cultural capital can impact other people (e.g., through changed behavior, future decisions or interactions) and create externalities, i.e., the cultural capital externalities. The size of the externalities is expected to increase (or decrease) with the level of consumption. Without the consumption by the users, no externalities are produced. While this is one of the most fundamental arguments for cultural policy, it has not yet been extensively studied within cultural economics.

Potential Impacts of Mining to Resources along Carac-an Watershed, Eastern Mindanao, Philippines: Total Economic Value Estimate Runnint Title: Total Economic Value of Mining Impacts

Mining extracts minerals are important in the technological advancements of humanity. This leads to a progressive society, address relevant medical issues, food-security problems, and even creates various jobs. However, the externalities of mining activities like land-use changes are inevitable that could affect the resources and various users. Hence, this study was conducted to obtain an estimate of the total economic value of resources that are adversely impacted by mining activities, particularly the basic goods and services used by the people. Estimating the total economic value, includes computing the use and non-use values and the existence and bequest values. The study sites covered were within the Carac-an Watershed along the Municipalities of Cantilan, Madrid, and Carrascal. Primary and secondary data were obtained and used as basis in estimating the total economic value. Results showed that the total economic value of use and non-use goods and services along the Carac-an Watershed had amounted to PhP 4,569,224,709.00 per year. This can be considered as an environmental asset that would be lost as a consequence of mining operations. However, this economic value is too huge to be compromised by the externalities (e.g. pollution, deforestation, land use change and siltation) out of mining activities thereby putting the community and the environment at risk. While this finding was only based on estimated values, it is still imperative to revisit the implementation of mining operation. Further, relevant comprehensive study is recommended to fully capture the values of other resources not considered in this study.

KESESUAIAN TARIF RETRIBUSI ATAS PEMANFAATAN LAHAN HUTAN MANGROVE KAWASAN TAMAN HUTAN RAYA NGURAH RAI

Adjustments to levy rates for land use carried out in Tahura Ngurah Rai Area are carried out to obtain tariffs that are in accordance with current conditions. The levy rate is determined by calculating the economic value generated by the Mangrove Forest in Tahura Ngurah Rai area. Assessment of nature using monetary units will show the economic value of the environment so that policy makers can make the right decision between preserving nature or advancing the economy. The purpose of this study was to identify the functions and benefits of Tahura Ngurah Rai mangrove forest and calculate the total economic value of Tahura Ngurah Rai mangrove forest. Tahura Ngurah Rai mangrove forest has three main functions, namely: biological, physical and economic functions. The economic value of the mangrove forest in Tahura Ngurah Rai area obtained using the total economic value method is IDR 72,020,018,026 per year or IDR 52,586,361 per hectare per year. The total economic value is obtained by adding up the direct use values, indirect use values, option value, existence value and inheritance value (bequest value).
 Keywords: Economic Valuation, Mangrove Forest, Economic Value, Total Economic Value.

Contribution of Communication to the Economic Evaluation of the Direct Use Value of Lake Dem in Burkina Faso

In Burkina Faso, wetlands play an important role in the country’s economy. Dem Lake, one of the Ramsar sites of international importance inscribed in 2009, and is today facing severe degradation under the combined effect of climate change, poverty, population growth, and pressure from anthropogenic activities. Also, the goods and services of the Dem Lake ecosystems have not yet been studied to provide us with information on their costs. This lack of price leads local populations and political and private decision-makers to behave as if the value of the natural heritage is nil. The objective of this study is to assess the economic value of some supply services of Lake Dem. Thus, it is a question of identifying the main services provided by the lake and then estimating their economic value. The tool used is that of the market price technique. This technique measures the quantities of goods consumed or sold and determines the prices at which they are offered on the market. The research made it possible to identify consumer goods by sector of activity such as market gardening, agricultural production, fish production, grazing and the water resource provided by the ecosystem. Similarly, we were able to determine on the basis of the communication, the quantity of the various non-timber forest products that enter into household consumption. The results revealed that the total value of the supply services is estimated at more than two billion two hundred million francs (2,200,000,000) CFA. This estimate does not provide knowledge of the total economic value of Lake Dem, because it is only the direct use value of a few goods and services that have been assessed. Similarly, the indirect use, option and bequest values have not been assessed.

Valuing improvements in the ecological integrity of local and regional waters using the biological condition gradient

Scientific knowledge related to quantifying the monetized benefits for landscape-wide water quality improvements does not meet current regulatory and benefit-cost analysis needs in the United States. In this study we addressed this knowledge gap by incorporating the Biological Condition Gradient (BCG) as a water quality metric into a stated preference survey capable of estimating the total economic value (use and nonuse) for aquatic ecosystem improvements. The BCG is grounded in ecological principles and generalizable and transferable across space. Moreover, as the BCG translates available data on biological condition into a score on a 6-point scale, it provides a simple metric that can be readily communicated to the public. We applied our BCG-based survey instrument to households across the Upper Mississippi, Ohio, and Tennessee river basins and report values for a range of potential improvements that vary by location, spatial scale, and the scope of the water quality change. We found that people are willing to pay twice as much for an improvement policy that targets their home watershed (defined as a four-digit hydrologic unit) versus a more distant one. We also found that extending the spatial scale of a local policy beyond the home watershed does not generate additional benefits to the household. Finally, our results suggest that nonuse sources of value (e.g., bequest value, intrinsic aesthetic value) are an important component of overall benefits.

Option Value, Existence Value, and Bequest Value of Mangrove in Jerowaru District, Lombok Timur Regency, Nusa Tenggara Barat

The value of mangroves is not only in the form of wood products, but can also be in the form of non-timber forest products (HHBK) and environmental services. Information is needed regarding the value of the importance of using mangroves in the future, the value of conserving their biodiversity, and the value of community appreciation for their existence. The research was conducted around of mangrove area in Jerowaru District, Lombok Timur Regency, Nusa Tenggara Barat Province from February – July 2022. The method used in this research is a quantitative approach through the provision of option values, existence values, and bequest values to mangroves which are determined based on estimates using WTP (willingness to pay), whose values are based on the contingent valuation approach. Based on the results of the assessment of the options benefit, the existence benefit, and the inheritance benefits, of mangroves in Jerowaru District, Lombok Timur Regency, Nusa Tenggara Barat Province, it is known that the value of the optional benefit related to biodiversity conservation for the benefit of utilization in the future is ± IDR 224,885.25/ha/year. The value of the existence benefit related to habitat continuity for user species ± IDR 84,953.96/ha/year and the value of the bequest benefit related to community appreciation of the ownership of resources ± IDR 1,066,667/ha/year

Tourists' Willingness to Pay for the Non-Use Values of Ecotourism Resources in a National Forest Park

National forest parks are important ecotourism destinations for locals and out-of-town visitors worldwide. The increase in protected areas is accompanied by challenges. The major challenge is the tension between conservation and exploitation. However, over-exploitation is causing irreversible damage to tourism resources by neglecting to accelerate conservation and satisfying the needs of only tourists. Therefore, it is a prerequisite to evaluate the value of ecotourism resources, especially non-use values. Liugong Island National Forest Park is a seaside forest park in Shandong Province, China. Tourist activities have negatively impacted the amenity and values of the park and increased management and maintenance costs. This study aimed to enhance the protection awareness of ecotourism resources by evaluating non-use values with the contingent valuation method (CVM). Ecotourism attitude factors were extracted by factor analysis, and the ecotourism market was segmented by cluster analysis. Then, an empirical assessment model was designed. Furthermore, through a double-bounded dichotomous choice model of the CVM, non-use values of ecotourism resources were estimated, and differences in non-use values among the groups with different attitudes were discussed. The results indicated that (1) Tourists with conservation backgrounds tended to pay more for general non-use values, while high-income tourists were willing to pay more for the Altruistic value; (2) The willingness to pay (WTP) of tourists was highest for the Bequest value, followed by the Existence value or Altruistic value, and finally the Option value; (3) The WTP was highest for the group valuing pluralism, followed by the group concerning resources, and lowest for the group concerning the environment. This study can provide valuable information for ecotourism planning and management that corresponds to current issues and tourist needs.

Economic values of environmental services of three forest areas in South Ogan Komering Ulu District, South Sumatra, Indonesia

Abstract. Sari EK, Mulyana A, Antoni M, Adriani D. 2022. Economic values of environmental services of three forest areas in South Ogan Komering Ulu District, South Sumatra, Indonesia. Biodiversitas 23: 6180-6190. Forest provides environmental services in the form of provisioning, regulating, supporting and cultural services. However, forest is often valued from its timber products, neglecting its broader role in delivering environmental services especially its role in maintaining ecological functions. Forests in South Ogan Komering Ulu District, South Sumatra, Indonesia have high ecological importance in delivering environmental services, yet these forests are pressured by clearing and conversion into plantations and agriculture. The study aimed to comprehensively calculate the total economic value of environmental services delivered by three forest areas in South Ogan Komering Ulu, namely Gunung Raya Wildlife Reserve, Saka Production Forest and Saka Limited Production Forest. We calculated total economic value by incorporating the use value, which consists of direct use value and indirect use value, and the non-use value, which consists of option value, existence value and bequest value. The results revealed that the total economic value of the three forest areas is IDR 863,868,883,037. In more detail, the use value consisted of direct use value with IDR 354,378,792,460 contributing to 41.02% and indirect use value with IDR 509,309,370,324 contributing to 58.96% to the total economic value. The non-use value is from the option value, the existence value and bequest value with IDR 97,449,120 (0.01%), IDR 65,512,153 (0.01%) and IDR 17,758,980 (0.0021), respectively. Our study implies that forest has tremendous ecological functions which provide a very high economic value and environmental services, where these functions are often neglected.

Heterogeneous Nonuse Values for Arches and Zion National Parks

Executive Summary This paper identifies several kinds of heterogeneity in nonuse values using a contingent choice experiment about two national parks in Utah. Such heterogeneity has potentially important implications for national park management. When management resources are scarce, it matters that nonuse values differ across park resources or attributes. Resources that generate more nonuse values deserve more protection, including the impacts of visitor activities. Heterogeneity by location implies that management decisions appropriate for one park can’t be adopted in other parks without careful consideration. Heterogeneity of nonuse values matters for management if there are political, equity, or justice reasons to pay more attention to particular groups in society. Heterogeneity by type of nonuse value matters for management, too: existence values have different implications than bequest values since the latter still are generated by (future) visitation. The contingent choice experiment used in this paper asks respondents to compare different potential future scenarios for management of either Zion or Arches National Park. Each scenario is made up of potential changes to seven attributes: wilderness protection, educational outreach, animal conservation, plant conservation, visitation levels, cultural/historical protection, and an annual tax payment. Respondents’ rankings are used to estimate a variety of mixed logit models. In addition, respondents are asked to report what percentage of the total value they receive from each attribute is due to use values, option values, bequest values, and existence values. While some previous researchers used similar questions to decompose nonuse values, this paper uses the decomposition questions differently. First, they are asked separately about each attribute in the experimental design of a contingent choice survey, as opposed to being asked once about total value or total nonuse value. Second, they are used as part of a mixed logit estimation of the relative part-worths of each attribute, rather than being used to decompose the final valuation estimates. Results indicate substantial heterogeneity by park attribute, location, individual, and type of nonuse value. These differences across attributes are largely independent of demographic and socioeconomic variables, though. The paper concludes with a discussion of the implications of the empirical findings for park management.

A Value-Based Well-Being Framework

This article presents and illustrates a novel value-based well-being framework, derived from service-dominant logic notions of the link between value and well-being. Based in a wide range of disciplines, this framework links well-being to four value outcomes: use, option, existence, and bequest value. Such value outcomes stem from the interaction of three dimensions: beneficiary (individual or collective), time (present or future), and space (proximal or broader context). By combining the three dimensions, the proposed framework reveals how people evaluate their own individual well-being according to different beneficiaries, times, and spaces.

Climate Impacts on Natural Capital: Consequences for the Social Cost of Carbon

The effects of climate change on natural systems will be substantial, widespread, and likely irreversible. Warmer temperatures and changing precipitation patterns have already contributed to forest dieback and pushed some species toward extinction. Natural systems contribute to human welfare both as an input to the production of consumption goods and through the provision of nonuse values (i.e., existence and bequest values). But because they are often unpriced, it can be difficult to constrain these benefits. Understanding how climate change effects on the natural capital stock affect human well-being, and therefore the social cost of carbon (SCC), requires understanding not just the biophysical effects of climate change but also the particular role they play in supporting human welfare. This article reviews a range of topics from natural capital accounting through climate change economics important for quantifying the ecological costs of climate change and integrating these costs into SCC calculations.

How and to what extent is ecosystem services economic valuation used in coastal and marine management in China?

Ecosystem services economic valuation (ESV) is widely advocated as a useful tool to support ecosystem management decision-making. However, whether ESV is used and the application areas of ESV by decision-makers in coastal and marine management in China remain largely unexplored. This paper aims to determine whether ESV is used, the application areas of ESV and the possible limits of ESV in coastal and marine management in China. To characterize the classification, applications and limits of ESV, a questionnaire was designed, and a nationwide survey was conducted. Descriptive statistics addressing the application level and application areas of ESV were produced, and then, four regression models were run to examine the factors that limit the application of ESV in the decision-making process. The results show the following. (i) Use value information is being applied by decision-makers in coastal and marine management in China. More specifically, direct use value information is more frequently applied than indirect use value information. (ii) Nonuse values, i.e., existence value and bequest value, are still rarely applied in coastal and marine management in China. (iii) Theoretical and technical barriers are found to have more limitations on the application of nonuse value information than social and economic barriers.

Policy implications of willingness to pay for sustainable development of a world agricultural heritage site: The role of stakeholders' sustainable intelligence, support, and behavioral intention

AbstractThe willingness to pay (WTP) for preservation of a Globally Important Agricultural System, Jeju Batdom, South Korea is estimated. To help control for hypothetical bias, two scenarios are used, hypothetical and real settings. Further, this study investigates how the concepts of sustainable intelligence, residents' support, and behavioral intention affect WTP in addition to demographic variables. Finally, three types of preservation values (bequest, option, and existence) are examined to identify how each value influences WTP. As expected, the results reveal that WTP of the hypothetical setting is larger than the real setting. The explanatory variables of sustainable intelligence, residents' support, and behavioral intention significantly increase the WTP for preservation of Batdam. Implications are clear for the preservation of agricultural heritage sites, developing programs to increase residents' sustainable intelligence, support, and behavioral intention will increase WTP for preservation. Furthermore, the Jeju residents place the highest weight on bequest value, followed by option and existence values. The findings provide researchers and practitioners with important implications when they implement sustainable development of agricultural heritage resources.

Quantifying Ecosystem Services of High Mountain Lakes across Different Socio-Ecological Contexts

Mountain lakes are highly sensitive to global change, requiring sustainable management strategies that support crucial ecosystem services (ES). However, small mountain lakes are rarely in the focus of ES assessments, and indicators are potentially lacking. Therefore, this study aimed at comprehensively assessing key ES of 15 study lakes located in two regions in the European Alps. We involved local stakeholders and experts to identify important ES. We quantified eight ES in non-monetary terms, using 29 indicators based on limnological, spatial and socio-economic data. Finally, we evaluated ES in relation to the socio-ecological context of the study lakes. The most important ES included surface water for non-drinking purposes, maintaining populations and habitats, outdoor recreation, aesthetic value, entertainment and representation, scientific research, education as well as existence, option, or bequest value. Quantitative results indicate varying levels of ES across the study lakes. Based on 12 different socio-ecological variables, we identified four groups of lakes differing also in five ES. Maintaining populations and habitats, aesthetic value as well as existence, option or bequest value were rather independent from the socio-ecological context. Our findings contribute to a deeper understanding of ES of mountain lakes, also supporting the development of sustainable management strategies in mountain regions.

Ecosystem services in Antarctica: Global assessment of the current state, future challenges and managing opportunities

Antarctic ecosystem services are rich and diverse and include global climate modulation, biodiversity and habitat protection, cultural heritage, scientific knowledge, education and recreation as well as the extraction of marine living resources. However, environmental protection studies have rarely examined the full complement of Antarctic values recognized in the Antarctic Treaty or Antarctica’s other natural benefits as ecosystem services (ES). Moreover, the existing limited number of ES studies have focused primarily on the biophysical modeling of the service providing units, with little focus on evaluating the balance between Antarctica’s intrinsic vs. economic values (e.g., opportunity cost, payment for services and bequest), or societal perceptions on the Antarctic ES teleconnections with global issues. Here, we systematically identify the ES dimensions present in Antarctica through an expert elicitation combined with scientific literature review. We then map their spatial overlap and examine the existing trends of usage over the various stages of ES utilization in the continent. Lastly, we conduct a preliminary evaluation of the resulting trade-offs from their respective increased utilization. Our results show that Antarcticás ES are currently facing substantial challenges to remain sustainable. In marine ecosystems, fish and krill stock provisioning may put at risk the maintenance of habitats and biodiversity regulation. In turn, cultural values centered around terrestrial ecosystems, face a three-way conflict between the increasing demand for tourism opportunities, the region’s rich and diverse scientific interests and the vast wilderness and bequest values. To appropriately conserve Antarctic ES for future generations, we discuss how different ES framework tools could be developed and adapted to the Antarctic Treaty policy context.

Year-to-year ecosystem services supply in conservation contexts in north-eastern Madagascar: Trade-offs between global demands and local needs

Tropical mountain forest frontier landscapes are increasingly target of protected areas (PAs) implementation, in many cases to secure the supply of globally demanded ecosystem services (ES). However, whether PAs manage to achieve their objectives is not always clear, nor are the implications of PA establishment for the supply of ES relevant for local populations. To address these knowledge gaps, we assess the year-to-year supply of six stakeholder-relevant ES across ES categories in two forest frontier, mountainous landscapes in the periphery of PAs in north-eastern Madagascar. As ES most relevant to local populations, we assess food crops production, flood control and bequest value. As globally-demanded ES, we evaluate export cash crops production, global climate regulation and existence value. Our results suggest that PA implementation managed to stem on-going losses of global climate regulation and existence value, but at the expense of also driving decreases in food crops production and bequest value supply to local populations. While our findings are encouraging for global conservation objectives, they also highlight the stark costs local populations might incur under PA establishment, and thus the need to assure that local livelihoods and well-being, including cultural dimensions, are not undermined by conservation interventions.

주거자산 유동화와 노후자산 가치

주거자산 유동화와 노후자산 가치

Study of the Economic Valuation of Gemah Beach Tourism During the Covid-19 Pandemic in Tulungagung Regency, East Java

The engulfing COVID-19 pandemic in various regions affected various sectors, one of which was the Indonesian tourism sector. The policy of social restrictions and travel restrictions led to a decrease in tourists at almost all tourist attractions. The purpose of this study is to identify the type of economic value generated by Gemah Beach tourism objects during the Covid-19 pandemic and evaluate the total economic value generated by Gemah Beach tourism objects during the Covid-19 pandemic. This research method uses a survey method by taking a sample of a number of tourists, business people, managers of Gemah Beach tourism objects. The type of data collected consists of primary data and secondary data. The economic valuation method is used to calculate the total economic value of the Gemah Beach tourism object obtained from direct use value, indirect use value, preferred use value, existence value, and bequest value. Data analysis used descriptive quantitative. The results of the study still found various types of economic activities carried out by business actors at the Gemah Beach tourism object during the COVID-19 pandemic, despite the government’s social and economic restrictions. Meanwhile, based on the results of the economic valuation of the Gemah Beach tourism object during the COVID-19 pandemic, a total economic value of IDR 28,131,949,529 was obtained. The total economic value, according to tourism managers, is lower than before the COVID-19 pandemic due to activity restrictions and a decrease in the number of visitors. Optimizing the economic and natural potential of the Gemah Beach tourist attraction with the fulfillment of facilities and infrastructure in accordance with the COVID-19 health protocol can be used as a strategy in dealing with the COVID-19 pandemic so that the tourism industry can continue to grow.

Willingness-to-pay for restoration of water quality services across geo-political boundaries

Establishing the value attached to ecosystem services provides instrumental information in the planning of conservation initiatives to ensure forest ecosystem sustainability. This study fills a gap in the literature regarding the value associated with ecosystem services for which their direct use can be challenged by distance and geo-political boundaries. We estimated US residents' willingness-to-pay (WTP) for the restoration of degraded temperate out-of-state and tropical out-of-the-country forested watersheds for improved water quality services under hypothetical payment for ecosystem services (PES) programs. Factors influencing WTP were estimated using a bivariate probit model and mean WTP values adjusted for self-reported certainty of responses. Transboundary economic value decay was reflected on lower households' annual WTP values for the restoration of the tropical out-of-the-country (US$ 124.15–238.30) than temperate out-of-state (US$ 131.70–256.79) forested watershed ecosystems. Bequest and existence were the non-use value motivations most strongly associated with WTP for temperate out-of-state and tropical international PES programs, respectively. Other salient explanatory variables included program cost to households, age, sex, income, household size, political party identification, attitudes towards PES, affiliation with environmental conservation group and direct experience with comparable natural resources. This study offers evidence of positive prospects for transboundary PES programs to restore geographically delimited ecosystem services driven by existence, option and bequest value motivations.