Contingent Valuation Method Research Articles

Valuing cultural public goods in times of pandemic: What happened to the libraries?

Libraries are one of the most representative institutions of cultural heritage in that they are charged with safeguarding information, fostering knowledge and activating memory. Over the years, they have widened the scope of their functions to also become cultural centres geared towards dissemination and cultural creation, in addition to playing an ever more important role in terms of social interaction and inclusion. This paper seeks to estimate the economic and social value that people assign to public libraries in the city of Medellin (Colombia) which, due to the Covid-19 pandemic, were forced to temporarily halt their onsite services. The contingent valuation method was used, based on a virtual questionnaire aimed at users and non-users in order to estimate the potential value of the direct and passive use of libraries during the pandemic. In addition, certainty analysis was applied to evaluate the trend of stated contributions as reporting reliability increases. Relevant and significant positive willingness to pay was found, and was seen to be greater amongst users who were most sure of their valuations, whilst payments remained stable in the certainty range of non-users. The results highlight the key role played by libraries as local public goods, even during a pandemic and therefore, their function as a basic cultural service as well as of drivers of inclusion and urban change.

Estimating the monetary value of a Quality-Adjusted Life-Year in Quebec.

The value of a Quality-Adjusted Life-Year (QALY) is of great importance for the healthcare system. It helps when it comes to defining a cost-effectiveness threshold for the evaluation of health technologies. No willingness-to-pay value for a QALY exists in the province of Quebec, Canada. In this paper, we empirically investigated the monetary value of a QALY for the population of Quebec. Based on the Short-Form 6-Dimension version 2 (SF-6Dv2), we conducted an online survey with a representative adult sample living in Quebec. We used a time trade-off (TTO) combined with contingent valuation (CV), and a discrete choice experiment (DCE) to assess both the population's willingness to pay (WTP) for one QALY and the marginal WTP for health attributes. A health utility algorithm using hybrid regression was developed to determine a preference-based value set for health states. Main analysis was conducted on 993 answers for the CV and 2143 answers for the DCE. The willingness-to-pay per QALY varied from CA$ 47,048.84 (CI: 21,554.38; 72,543.30) for CV to CA$ 73,936.87 (CI: 63,105.40; 84,768.35) for DCE. Among the 6 dimensions of the SF-6Dv2, marginal WTP varied from CA$ 4499.15 (CI: 2975.06; 6023.25) for more role accomplishment in daily activities to CA$ 15,867.12 (CI: 13,825.75; 17,908.49) for less pain. Robustness check with multiple alternative samples, as well as alternative health utility algorithms, showed that the results were robust and the DCE method provided 50% larger results than the CV method, although confidence intervals overlap. This paper provides useful information for decision-makers on the monetary value of a QALY in Quebec.

Consumer perceptions and behaviors toward take-out food plastic packaging reduction: A case study of college students in China

With the prevalence of online take-out food, the increasingly generated single-use plastic packaging waste has aroused public concern in the context of combating plastic pollution globally. The majority of present studies have focused on product design and policy design to influence the corporate behaviors in packaging waste management. Few attentions have been concentrated on consumer perceptions, a neglected vital factor in commercial practices, which determines whether the proposed measures can be effectively applied. This study takes college students, the main consumer group of take-out who are most likely to receive new environmental protection concepts, as a case study and employs the contingent valuation method to investigate their perceptions and behaviors toward emerging plastic packaging reduction approaches and taxation mechanisms. It was found that packaging circulation was preferred mostly with a proportion of 73.20% of the respondents, while taxation mechanism was more favored by those who have higher daily expenditure on meals. Gender, living costs and ordering frequency could significantly influence the acceptance levels. Therefore, a circulation mechanism using cabinet near take-out food hot spots and third-party cleaning services could target students and officers as pioneers. Regarding the taxation approach, it was suggested that the payment that most of the respondents could accept is 1.5 CNY. This study serves as a reference for the reduction of plastic waste from take-out packaging on campus, and provides a possible model that could reduce the environmental impacts of take-out food packaging through both taxation and circulation measures. The findings are expected to bring primary insights for take-out food plastic packaging reduction in China. For future studies, the methodology of this study was also well-prepared to investigate a larger scale of consumers and develop a more universal policy.

VISITOR WILLINGNESS TO PAY CONSERVATION FEES AT CMC TIGA WARNA IN MALANG, INDONESIA

This paper was aimed at investigating the factors that influence visitors' willingness to pay (WTP) for conservation fees for the Clungup Mangrove Conservation (CMC) Tiga Warna project in Malang, Indonesia. The contingent valuation method (CVM) was used to estimate the amount that visitors would be willing to pay in additional conservation fees to enable improvements to be made to the CMC Tiga Warna area. The results that were obtained from 311 respondents indicated that visitors were willing to pay an additional Rp 12829.58 per person on top of the initial conservation fee of Rp 10,000. In terms of the socio-demographic variables, age and marital status had a significant impact on the willingness to pay. Furthermore, the results indicated that those visitors who had a higher perceived value and a higher level of trust in the managers of the CMC Tiga Warna tended to contribute more to the area. The results of this study will serve as a valuable guide for managers in adjusting prices and making management decisions to ensure the further sustainability of ecotourism at the CMC Tiga Warna area.

The tenant's pre-emption rights in Italian agriculture: An introductory economic evaluation

The paper explores the almost “unknown territory” of the economic evaluation of pre-emption rights (PRs) in agriculture, by focusing on two PRs held by tenant farmers in Italy: on purchasing of rented land and on contract renewal. For both PRs, the main characteristics and an historical framework are provided. The research has three goals: PR values estimations, exploring factors that affect the tenant's choice of rating the PRs, exploring factors that affect the PR values. Lacking a specific theory on the PR value in agriculture, an ad hoc conceptual framework has been developed by referring mainly to the theory of farm evaluation, which has proved helpful in discussing the research findings. Research goals are achieved by employing the contingent valuation, logistic regression and linear regression methods. Data collection refer to an on-farm survey covering 55 tenants, which has provided a database of 230 lease contracts.Among the analysis findings, the worthiest of note are: a) the farmer's PR on the neighbouring land for sale is more appreciated than the tenant's PR on rented land for sale; b) tenant's PRs favour the growth of farm size not only by securing plots with labour intensive crops but also by guaranteeing adequate economies of scale; c) the percentage of contract area on total rented area is the main factor that induces tenants to evaluate the PR of a specific land under contract; d) the value of the PR on the purchasing of rented land mostly increases in relation to the dimension of the farm machinery fleet, the presence of intensive crops and the tenant's interest in the rented land, while investments made on it positively affect the value of the PR on contract renewal.

Does the Value of Water-Related Ecosystem Services Capture Water Scarcity? Application to Rice Farming in the Mekong Delta of Vietnam?

This study utilized the contingent valuation method to estimate the value of water-related ecosystem services (ES) in Vietnam, focusing on provisioning and regulating services for addressing water scarcity (WS) in rice farming. By incorporating gender and climate change perceptions, it expanded the existing literature on valuing river ecosystem services. The findings showed a significant number of households experiencing severe water scarcity in the past five years, with over 70% facing occasional or regular WS in the last 12 months. Rice farmers were willing to adopt coping measures and preventive practices to preserve water-related ES, recognizing their importance for sustaining rice cultivation. Farmers demonstrated willingness to contribute financially to restore and maintain water-related ES in rivers and canals. The median willingness to pay for restoration was VND188,300/ha, with estimated values of US$2,898,133 for a 10% affected area and US$23,185,068 for an 80% affected area over five years. Perception of WS severity and associated risk positively influenced households’ decisions to contribute financially. These findings have policy implications and provide insights for effective coping strategies against WS, enhancing water-resilient agriculture in the Lower Mekong Basin.

Preference of consumers for higher-grade energy-saving appliances in hierarchical Chinese cities

Promotion of energy-saving household appliances (ESHAs) potentially contributes to optimizing both the total quantity and efficiency of household energy consumption. Differences in urban consumers’ preference for higher-grade ESHAs as well as its influencing factors in cities with hierarchical socioeconomic levels remain elusive. Targeting 55 Chinese cities pertaining to three levels of socioeconomic development, we distribute questionnaires designed to cover both demographic and consciousness factors. By combining Contingent Valuation Method and multiple linear regression, the extra willingness to pay (WTP) for Grade-1/2 appliances compared with Grade-3 appliances is measured, and the influence factors on the WTP as well as consumers with highest WTP are identified. The extra WTP for Grade-1 appliances in First-, Second- and Third-level cities is 44.1%, 42.3% and 32.7%, respectively. The influences of age, household income, having children or not and monthly electricity bill parallel the socioeconomic level, while gender and schooling affect differently across socioeconomic levels. Consumers in less developed cities focus more on their affordability for the ESHAs, and in more developed cities have better environmental consciousness. Subsidies for consumers, such as those having master degree or above in First-level and Second-level cities, and having children in Third-level cities will increase their WTP. The findings provide insights for policy interventions aimed at boosting the purchase behavior for ESHAs according to local conditions for control of both household energy consumption and carbon emissions.

Characteristic of Eco-Biologycal and Economic Value of Wedgefish (Rhynchobatus Australiae) in Tanjung Luar, East Lombok

White Spotted Wedgefish (Rhynchobatus australiae) is one of the member Elasmobranch family which is categorized as an endangered species. The R. australiae is the main target by fishers in Tanjung Luar and Maringkik Island. This study was aimed to analyze ecobiological aspect and to estimate economical incentive value of R. australiae fisheries in Tanjung Luar. The Total of 616 samples were collected from Tanjung Luar Fishing Port from 2017-2021, consisting of 64 males and 552 females. Total 150 fisher respondents from Tanjung Luar and Maringkik Island were interviewed. R-Studio software was used to estimate the ecobiological aspects based on life history parameters. Contingent Valuation Method (CVM) and Discrete Choice Experiment (DCE) were used to estimate economical incentive. The result show that the average length of R. australiae was 213,12 ± 2,63 (cmTL) which is accordance with the regulation. However, the sample of R. australiae was dominated by immature size fish. The growth rate of female R. australiae was lower and have a longer lifespan than male. The condition of R. australiae in Tanjung Luar waters was categorized as biological overfishing. The value of Total Willingness to Pay (WTP) for R. australie conservation was Rp11.226.000/month, whereby the value for individual was Rp.62.340/person. Education and income are the most significant variables affecting WTP.

Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi

AbstractOne of the main barriers to adopting smallholder agricultural mechanization in developing countries is the mismatch between the economies of scale of machines and farm size. Private sector‐led mechanization services hold a promise to address this challenge, but there is a lack of evidence on demand for smallholder mechanization services. This study estimates the farmers' willingness to pay for mechanization services using the double‐bounded contingent valuation method and data from 1512 households. Results show that, on average, farmers are willing to pay 11%, 33%, and 5% more than prevailing market rates for land preparation, maize shelling, and transportation services, respectively. The amounts farmers are willing to pay for the mechanization services vary by sex, age group, size of cultivated land, the value of farmer assets, market access, and agroecology. Men are willing to pay 26%, 25%, and 11% more than women for land preparation, maize shelling, and transportation services. Moreover, 40% of female and 90% of male farmers are willing to pay more than or equal to the prevailing market rate for land preparation services. The high demand for mechanization services among smallholder farmers points to the need for making the machinery available to rural communities through mechanization service providers or machinery hiring centers run by the private sector. The paper concludes by discussing the contextual factors and policy options for promoting smallholder mechanization in Malawi. [EconLit Citations: O33, Q11, Q13, Q16].

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.

The economic costs of cadmium non‐tariff measures for smallholder cocoa farmers in Ecuador

AbstractWhile there is a growing number of studies on the export‐ and firm‐level implications of non‐tariff measures for developing countries, there is little evidence on the trickle‐down effects on the farm level. In this paper, we analyse the recent regulations of the European Union regarding the maximum allowed cadmium (Cd) contents for cocoa‐derived products. We assess the potential economic costs associated with these Cd regulations for smallholder cocoa farmers in Ecuador. We rely on data from a nationwide survey among 1392 cocoa producers and a contingent valuation method to estimate producers' willingness to convert cocoa orchards to other land uses in case cocoa bean Cd levels exceed the limit. We estimate that farmers' economic cost of abandoning cocoa production is, on average, about 4400 US$ per hectare. Combining this value with a Cd distribution map and cocoa production statistics, we estimate that abandoning cocoa cultivation in areas with bean Cd concentrations above the 0.6 mg/kg target comes at a total economic cost of about 750 million US$. We conclude that the potential total economic cost of the EU Cd standard at the producer level in Ecuador could be very large if compliance strategies are not implemented to minimise welfare loss.

Impact of sustainability communication on German tourists’ willingness to pay for a Finnish cottage holiday

ABSTRACT Using the contingent valuation method, this study examines the determinants of German tourists’ willingness to pay for accommodation in a Finnish holiday cottage. A particular focus is on the communication of credentials relating to three dimensions of sustainability (environmental, socio-cultural, and economic). The results suggest that there are significant differences in how tourists value the different sustainability attributes of their accommodation. The environmental dimension was the only sustainability dimension to have a positive and statistically significant effect on tourists’ willingness to pay. In terms of tourists’ demographic characteristics, meanwhile, employment status was the only socio-demographic factor to have a significant effect on the tourists’ willingness to pay. The managerial implications include investing in, and actively communicating, environmental sustainability features as part of a successful business strategy for Finnish cottage service providers targeting German tourists.

Investigating the management of marine sand mining: A case of West Sea Exclusive Economic Zone in South Korea

Due to marine sand being classified as a common resource, the environmental cost resulting from its mining has not been reflected in the market prices of marine sand and aggregates, leading to overexploitation. Thus, it is crucial to consider the environmental cost of sustainable management. This study employed the contingent valuation method (CVM) to estimate people’s willingness to pay (WTP) for the conservation of marine sand, specifically focusing on the West Sea Exclusive Economic Zone (EEZ) in South Korea through a nationwide survey. As a result, although many of them revealed zero WTP for the issue, South Korean people are nonetheless concerned about the environmental damages caused by marine sand mining and support the strengthening of related policies. The annual environmental cost is estimated at KRW 45.8 billion (USD 41.6 million), and the unit environmental cost based on this is KRW 1390.1 (USD 1.3) per m3.

Effects of knowledge and perceived image on willingness-to-pay for access to world cultural heritage sites in Korea: using the dual coding theory of learning

ABSTRACT By building upon the dual coding theory of learning, this study aims to investigate the combined effects of perceived image and knowledge about world cultural heritage sites in Korea on willingness-to-pay an entrance fee. To do so, a 2 (image: absence vs. presence) x 2 (knowledge: absence vs. presence) experiment was conducted. Then, contingent valuation method (CVM) was used to estimate and compare tourists’ willingness-to-pay among four experimental conditions. The findings revealed that levels of perceived image and knowledge vary depending on experimental treatments, which substantially contribute to an increase in their payment intention for an entrance fee.

Perceptions towards ecotourism practice and the willingness to pay: Evidence from Chilika coastal wetland ecosystem, Odisha

Empirical studies show that biodiversity conservation, ecotourism development, livelihoods of local people and ethnicity in protected areas significantly impact society's well-being. However, achieving the aforementioned goals is extremely difficult without strong support, commitment from host communities, and effective coordination among ecotourism stakeholders. This study sought to explore the perceptions of various stakeholders regarding the impacts and importance of ecotourism and their willingness to pay for ecotourism development and biodiversity conservation at Chilika Lake, Odisha. We conducted semi-structured interview of 250 respondents in different areas adjacent to Chilika Lake such as Balugaon, Barakul, Pathara and Khalikot. To grasp the above objectives, we used the contingent valuation method (CVM) and the Double Hurdle Model to identify the determinants of willingness to accept (WTA) and willingness to pay (WTP). Simple descriptive statistics were used to analyse the perception of ecotourism impacts. The study found that local people in the study region perceived both positive and negative impacts of ecotourism. There was sufficient evidence of conflicts of interest in resource use, limited community involvement in ecotourism planning and decision-making, and low economic benefits. However, the study also found that instead of a range of negative impacts, a variety of stakeholders expressed a willingness to develop ecotourism with the prospect of improving their various needs. The results of the empirical double hurdle model showed that the variables of education, total income, importance of the lake, level of awareness, and occupation significantly impacted the willingness to accept the offered payment. On the other hand, age, marital status, education, total income, importance of the lake, and level of awareness have a significant influence on the willingness of different stakeholders to pay the offered amount. A detailed understanding of ecotourism, consideration of socioeconomic and demographic characteristics, and the development of ecotourism products and services enables various stakeholders to adjust their behaviour towards sustainability, and can contribute to an effective information and planning process which may lead to greater promotion of ecotourism.

Estimating the visitor’s willingness to pay towards biodiversity conservation at Kuala Lumpur Forest Eco Park, Malaysia, using the Contingent Valuation Method

Abstract. Musa F, Shahrudin INM. 2023. Estimating the visitor’s willingness to pay towards biodiversity conservation at Kuala Lumpur Forest Eco Park, Malaysia, using the Contingent Valuation Method. Biodiversitas 24: 3690-3699. The Kuala Lumpur Forest Eco Park is within the Bukit Nanas Forest Reserve, Malaysia's oldest and most biodiverse hill dipterocarp forest. The destruction of urban greenery in the heart of Kuala Lumpur has prompted stakeholders to conserve this forest as urban ecotourism areas for recreational, educational, and research activities. Due to the absence of a market, the economic value of biodiversity cannot be quantified in monetary terms from an economic perspective. Therefore, it will be difficult for stakeholders to justify the cost of conservation in their management in the future. This study's objective was to determine the economic value of biodiversity conservation at Kuala Lumpur Forest Eco Park by determining a visitor's Willingness to Pay (WTP) using the Contingent Valuation Method (CVM). A total of 250 questionnaires were distributed randomly to both international and domestic tourists to conduct this study. Five bid prices were chosen for domestic and international visitors based on the Logit Model's estimation of the visitor's WTP for biodiversity conservation. This study indicates that most visitors are willing to pay for biodiversity conservation influenced by religion, marital status, income, employment, and education. Furthermore, the results indicate that the WTP's mean and median per visit are MYR3.81 and MYR2.58 based on domestic visitor data. Consequently, this research may aid decision-makers in managing the financial strategy for biodiversity conservation activities. Thus, the conservation fee that visitors can accept based on their willingness to pay will further boost visitors' future visits to the Kuala Lumpur Forest Eco Park.

Willingness to pay for an annual vaccine in an endemic COVID-19 scenario: a contingent valuation study in Metro Manila, Philippines

Using the Contingent Valuation Method, this paper estimated willingness to pay (WTP) for annual COVID-19 booster vaccines for the endemic phase of the disease. The study found that, on the average, Metro Manila households would be WTP PhP2,199.71–2,410.50 (US$42.71–46.81) for a one-dose vaccine with 90% efficacy for one year. This WTP estimate is a measure of the perceived benefits from preventing COVID-19 infection, suggesting the potential for private markets to cater to those who prefer to obtain the annual booster COVID-19 vaccine privately, while a public vaccination program that subsidizes partially or fully the cost of the vaccine for those with lower capacity to pay is likely to pass a social cost–benefit assessment. Consistent with economic theory, WTP was found to significantly decrease with vaccine price and increase with income. Further, the study found general acceptance (measured in terms of the Health Benefit Model constructs) of COVID-19 vaccines among Metro Manila households despite the dengue vaccine controversy in the country immediately prior to the COVID-19 pandemic.

Consumer interest and willingness to pay for in-bulk products with reusable packaging options

Consumers are looking for solutions to reduce waste at source, especially plastic waste from single-use packaging. Simply recycling packaging will not be enough and reduction at the source must be emphasized as part of a sustainable circular economy. Selling products in bulk using reusable containers is one of the emerging paths of the zero waste movement. To achieve this, it is necessary to change consumption patterns and behaviors. Our goal is to better understand how source reduction of plastic packaging can be an asset in a zero waste objective. Using a contingent valuation method, we conducted a large pan-Canadian survey on the purchasing preferences of 2002 Canadian households to analyze the willingness to pay (WTP) for different food and household products. Results indicate that most consumers do not appear to be willing to pay more for bulk products with reusable packaging even if they are interested in buying more bulk products. Different socio-demographic and attitudinal parameters, such as age, gender, sense of convenience, and pro-environmental behaviors, influence willingness to buy and pay. The originality of this work is to provide an economic perspective on the reduction of single-use containers and changes in consumption practices in the context of the zero waste movement and the circular economy.

Valuing Nonuse Value of a National Forest Park with Consideration of the Local Residents’ Environmental Attitudes

Valuing the nonuse value of a national forest park (NFP) is critically important to obtain a better understanding of its total economic value, beyond focusing solely on the recreation value. This paper estimates the nonuse value of an NFP based on the relationship between the local public’s environmental attitudes and their willingness to pay (WTP). The data collected on the local residents’ environmental attitudes relied on the New Ecological Paradigm (NEP). Residents’ willingness to pay (WTP) for the national forest parkland protection was collected using the contingent valuation method (CVM). The nonuse value WTP was estimated using a bivariate dichotomous choice model. This model analyzed the relationship between the environmental attitude scores and WTP in order to estimate the nonuse value of the NFP of our case study site, Dalian Xijiao National Forest Park (DXNFP) in northeastern China. The results showed that DXNFP provides 20.26 CNY (3.02 USD) in nonuse value per household per year in Dalian city, which can then be translated into 140 CNY (21 USD) million annually in total.

The Economic Value of New Sustainable Products: The Case of Photovoltaic Thermal (PVT) Hybrid Solar Collectors

Among green energy technologies, solar power is a promising technology in the net-zero era of the power industry. Conventional solar modules have decreasing efficiency weaknesses as the temperature rises, whereas photovoltaic thermal (PVT) systems do not remove heat from the module or lower the temperature. However, the profitability of PVT systems has been underestimated. The profitability of new convergence products, such as PVT technology, entering the market for the first time allows for the evaluation of the appropriate starting price and policy requirements to support the product’s market entrance. We used the contingent valuation method (CVM) to solve this problem. The survey derived the respondents’ mean willingness to pay (WTP) and the total amount of social benefits. Among these CVM models, the one-and-one-half-bound (OOHB) spike model was used to distinguish zero WTP. Based on a survey of 300 households, respondents were willing to pay an additional yearly average income tax of KRW 10,608 (USD 7.90), and the total social benefit of PVT technology was calculated to be KRW 145 billion (USD 108 million). This result shows that individuals evaluate the value of PVT as 3.69% of their monthly electricity bill and 2.8% of their monthly gas bill. Several additional factors that influence WTP were analyzed, indicating a high possibility of PVT adoption by individuals who have replaced or are planning to replace photovoltaic (PV) modules. This study is significant because it examines the economic value of PVT and proposes a focus group for the effective market entry of new carbon neutrality products.