Hypothetical Market Research Articles

Measuring the Impact of Competition on Pricing Behaviors in a Two-Sided Market

The impact of competition on pricing has been studied in the context of counterfactual merger analyses where expected optimal prices in a hypothetical monopoly are compared with observed prices in an oligopolistic market. Such analyses would typically assume static decision making by consumers and firms and thus have been applied mostly to data obtained from consumer packed goods such as cereal and soft drinks. However such static modeling approach is not suitable when decision makers are forward looking. When it comes to the markets for durable products with indirect network effects, consumer purchase decisions and firm pricing decisions are inherently dynamic as they take into account future states when making purchase and pricing decisions. Researchers need to take into account the dynamic aspects of decision making both in the consumer side and in the supplier side for such markets. Firms in a two-sided market typically subsidize one side of the market to exploit the indirect network effect. Such pricing behaviors would be more prevalent in competitive markets where firms would try to win over the battle for standard. While such qualitative expectation on the relationship between pricing behaviors and competitive structures could be easily formed, little empirical studies have measured the extent to which the distinct pricing structure in two-sided markets depends on the competitive structure of the market. This paper develops an empirical model to measure the impact of competition on optimal pricing of durable products under indirect network effects. In order to measure the impact of exogenously determined competition among firms on pricing, we compare the equilibrium prices in the observed oligopoly market to those in a hypothetical monopoly market. In computing the equilibrium prices, we account for the forward looking behaviors of consumers and supplier. We first estimate a demand function that accounts for consumers`` forward-looking behaviors and indirect network effects. And then, for the supply side, the pricing equation is obtained as an outcome of the Markov Perfect Nash Equilibrium in pricing. In doing so, we utilize numerical dynamic programming techniques. We apply our model to a data set obtained from the U.S. video game console market. The video game console market is considered a prototypical case of two-sidedmarkets in which the platform typically subsidizes one side of market to expand the installed base anticipating larger revenues in the other side of market resulting from the expanded installed base. The data consist of monthly observations of price, hardware unit sales and the number of compatible software titles for Sony PlayStation and Nintendo 64 from September 1996 to August 2002. Sony PlayStation was released to the market a year before Nintendo 64 was launched. We compute the expected equilibrium price path for Nintendo 64 and Playstation for both oligopoly and for monopoly. Our analysis reveals that the price level differs significantly between two competition structures. The merged monopoly is expected to set prices higher by 14.8% for Sony PlayStation and 21.8% for Nintendo 64 on average than the independent firms in an oligopoly would do. And such removal of competition would result in a reduction in consumer value by 43.1%. Higher prices are expected for the hypothetical monopoly because the merged firm does not need to engage in the battle for industry standard. This result is attributed to the distinct property of a two-sided market that competing firms tend to set low prices particularly at the initial period to attract consumers at the introductory stage and to reinforce their own networks and eventually finally to dominate the market.

Friendship and Investorss Economic Rationality: An International Investment Study

Hypothetical stock market investment experiment in six countries reveals that subjects are better off losing money rather than gaining money as long as their so-called ”friends” lose more money. Only 8.2% of the subjects either ignore the peer group’s investment performance, as advocated by the classic univariate expected utility paradigm, or exhibit a consistently favorable response toward their friends, which is a necessary condition for the existence of altruism. The hostility of subjects toward their friends is greater in less wealthy countries. We provide some alternate explanations for these results.

基于居民生态认知的非使用价值支付意愿空间分异研究—以三江平原湿地为例

PDF HTML阅读 XML下载 导出引用 引用提醒 基于居民生态认知的非使用价值支付意愿空间分异研究——以三江平原湿地为例 DOI: 10.5846/stxb201306031284 作者: 作者单位: 山东工商学院 中加学院,东北农业大学,东北农业大学,东北农业大学 作者简介: 通讯作者: 中图分类号: 基金项目: 国家自然科学基金（71171044）；山东省社科规划项目（13DJJJ01）；中国博士后基金（2013M531012） Spatial differentiation research of non-use value WTP based on the residents’ecological cognition：taking the sanjiang plain as a case Author: Affiliation: Shandong Institute of Business and Technology,Northeast Agricultural University,, Fund Project: 摘要 | 图/表 | 访问统计 | 参考文献 | 相似文献 | 引证文献 | 资源附件 | 文章评论 摘要:在WTP距离衰减性研究基础上，将菲什拜因理论与条件价值法相结合，假设个人对于物品的认知在空间上并不是均衡分布的，不同空间内的受访者的支付意愿存在差异，以三江平原湿地生态系统为应用对象，将样本分为核心区、辐射区、外围区，采用双边界二分式CVM，探讨受访者对三江平原湿地生态环境保护的支付意愿水平及支付意愿的影响因素，建立基于居民生态认知的支付意愿空间分异模型。计算得到核心区、辐射区、外围区居民平均支付意愿分别为142.23 元 人-1 a-1、105.01 元 人-1 a-1、77.62 元/人，总体呈递减趋势，验证了距离、认知和WTP之间相关性。研究结果表明，通过空间视角将居民的认知程度纳入支付意愿的计算，能提高CVM在环境价值评估应用中的有效性及可靠性。研究结论将为政府相关政策的制定和决策提供参考依据。 Abstract:Contingent valuation is a survey-based method that randomly selects families or individuals as samples. It reveals consumer preferences for public goods and services such as ecological environment resources in a hypothetical market, and infers respondents' willingness to pay (WTP) to improve, for example, environmental quality. The method can also be used to calculate the respondents' WTP (or willingness to accept, WTA) and extend the samples to the whole study region. The average WTP (or WTA) can then be used to obtain the economic benefits or losses brought about by a planning project. A great variety of questionnaire formats have been developed and applied in practice, among which the Dichotomous Choice CVM is considered one of the most advanced methods nowadays. With the continuous development of CVM, it is important to analyze what factors influence WTP in the related empirical studies. Different scholars have reached an agreement that the respondents' willingness to pay for environmental improvement is closely related to the distance between the evaluation objects and the environmental resources. To a certain extent, the distance between the respondents and the evaluation objects can adjust demand for environmental goods as an alternative of price mechanism. On the one hand, the distance factor can influence the respondents' awareness level on environmental goods, which is to produce environmental preferences through affecting the information validity and the accessibility; on the other hand, it can also affect the possibility of usability and substitutability of environmental goods. Logically, the distance should have negative effects on affecting respondents' WTP in a given region in the assumption. The farther the distance of respondents' live from the assessment object, the less possible improvement and protection WTP for environmental goods will have. This is the "Distance Decay Effect". Based on the study on WTP distance-decay, this paper, combining the Fishbein theory with the contingent valuation method, assumes that individuals' cognition and attitude towards the goods are imbalanced and the willingness to pay (WTP) of respondents in different space exists difference. The random utility model is applied to build the Double-bounded Dichotomous Choice CVM Data Analysis Model,and establishes the influential factor of WTP. Taking Sanjiang plain wetland as the application object, the samples are divided into core zone, radiation zone and peripheral zone by using double-bounded dichotomous contingent valuation technique and discussing the payment ability, payment willing and their influential factors so as to establish the spatial differentiation model of the willingness to pay to the non-use value WTP based on the cognition and attitude. Respectively, the average WTP of residents is: 142.23, 105.01 and 77.62 RMB per year, exhibiting a step-decreasing trend, which means the distance, cognition and the WTP are closely related. Research results show that, involving the individuals' cognition in WTP model, the effectiveness of CVM can be improved. The findings will provide useful references for government to make related ecological policies and the conclusion of the study will lay a foundation and provide reference for the government policy and decision making. 参考文献 相似文献 引证文献

Options analysis for long-term capacity design and operation of a lignocellulosic biomass refinery

The growth of the lignocellulosic fuels has been hindered by technological and market uncertainty. This paper optimizes strategic investment decisions by prospective biobased fuel and chemical enterprises. A real options-based stochastic integer programming model is developed in this paper. We model a hypothetical, vertically integrated lignocellulosic enterprise that produces cellulosic ethanol and biosuccinic acid. Uncertainty is represented in bioproduct demands and prices. Strategic options including investment in research and development, investments in a flexible production platform and deferral of project investment are modeled. A hypothetical market model is also developed to correlate crude oil prices with the evolution of bioproduct markets. The discounted value of equity free cash flows is optimized. The optimal results include multiple capacity design plans based on the long term evolution of bioproduct markets. Monte Carlo simulations are also conducted to quantify the risk adjusted NPV's and returns on investment for the optimal capacity design trajectories.

The influence of distributed generation penetration levels on energy markets

Planning of national energy policies brings new dilemmas with the introduction of distributed generators (DG). Economic theory suggests that a perfectly competitive market would lead to efficient pricing. In the absence of competition, regulators play a fundamental role in attracting reasonably priced finance in order to maintain, refurbish and increase the infrastructure and provide services at a reasonable cost. Energy market price equilibrium is mainly dependent on suppliers, generators, energy sources and demand, represented by conventional utility grid users. Its behavior is similar to that of other commodities. As generation becomes less centralized with the increasing economic viability of renewable energy sources, new suppliers are being connected to the grid. Such evolution means the transition from a monopolistic market to a broader and more open environment, with an increasing number of competitors. We make use of variational inequalities to model a hypothetical DG market in different scenarios, from monopoly, to oligopoly, to open market. Such an approach enables different equilibrium outcomes due to different DG penetration levels. Based on these findings, we argue that energy policies for such markets must be developed according to each specific stage of the grid's lifecycle. We show how energy policies and market regulations may affect such a transition, which may be catastrophic if not managed properly, and which is dependent on the energy mix.

Property rights regimes in complex fishery management systems: A choice experiment application

The Tonle Sap wetland fishery was previously divided into 3 different management zones for conservation, open access fishing and private fishing. Rights to the private fishing zone involved auctions for exclusive rights to temporarily designated plots. This paper aims to explore the auction-based system by investigating how this fishery management system affects different groups of small scale fishermen and how different characteristics of the fishing lots affect the bidding. A choice experiment approach was used to model fishermen's choices in a hypothetical auction market by offering fishermen the choice between purchasing different potential fishing lots and a no purchase option, implying fishing only in the communal fishing grounds. The preferred latent class model with two segments of fishermen showed that the bidding behavior of the more privileged group out-competes the other group irrespective of the lot characteristics. This result suggests that it is unlikely that the redesign of the auction system itself would be an effective way of securing access to fishing resources for the two observed groups of fishermen. This implies that open access fishing grounds and/or other regulations may also be needed in future management as they serve an important role for the poorer segments.

Effects of Farm Bill Commodity Subsidies on US Corn Production, Farm Income, and Market Price

This paper outlines the effects of farm bill subsidies on corn farmers’ planting decisions, overall production, corn farmer income and market price of corn. The author utilizes a series of real and hypothetical market prices to demonstrate the particular combinations of subsidies that are available for corn farmers under varying market conditions. Research suggests that certain subsidies are theoretically capable of increasing production above normal levels when prices of corn fall below a certain threshold. However, in practice, prices of corn have not fallen below this threshold for extended periods of time, and thus this scenario has rarely presented itself historically. The author concludes that because they provide income support for corn farmers and create a safety net for corn prices, these subsidies represent an incentive in itself to grow corn over other non-subsidized produce. Thus, it is possible that corn subsidies have led to the growth of the industry over time by influencing the choices that farmers have made throughout history upon entering the market, rather than by influencing day-to-day planting decisions throughout the crop season.

An assessment of the optimal timing and size of investments in concentrated solar power

We extend the WITCH model to consider the possibility to produce and trade electricity generated by large-scale concentrated solar power plants (CSP) in highly productive areas that are connected to demand centers through High Voltage Direct Current cables. We test the attractiveness of the CSP option by imposing a global cap on Greenhouse gases concentration equal to 535ppm CO2-eq in 2100, with and without constraints to the expansion of nuclear power and IGCC coal with carbon capture and storage (CCS). We find that it becomes optimal to produce with CSP from 2040 and to trade CSP electricity across the Mediterranean from 2050. Therefore projects like DESERTEC seem to be premature. After 2050, CSP electricity shares become significant. CSP has a high stabilization cost option value: depending on the constraints, it ranges between 2.1% and 4.1% of discounted GDP in the Middle East and North Africa (MENA), between 1.1. and 3.4 in China, between 0.2% and 1.2% in the USA, between 0.1 and 1.3% in Eastern Europe and between 0.1 and 0.4% in Western Europe. A moderate level of subsidy to invest more and earlier in CSP might increase welfare. However, large-scale deployment should occur after 2040. We also show that MENA countries have the incentive to form a cartel to sell electricity to Europe at a price higher than the marginal cost. This suggests that a hypothetical Mediterranean market for electricity should be carefully regulated.

Royalty Rate Determination

Courts require royalty rate calculations based on rigorous economic foundations. The licensing literature provides limited guidance for royalty rate determination, leaving appraisal report readers wanting a more tangible and objective lens through which to judge the credibility of royalty rate analyses. This article develops the standard, core model for calculating market royalty rates for intangible asset licenses where royalty rates are determined ex ante in the actual market, or ex post in a hypothetical market under a Market Value Standard. The model forms a consistent basis for performing and evaluating licensing royalty appraisals. Not being distracted with the question of how to combine the input values when calculating a royalty rate, the court can focus on understanding and verifying an appraiser’s calculations of the input variable values.

生态保护价值的距离衰减性——以三江平原湿地为例

应用二分式条件价值评估法对三江平原湿地生态保护价值进行定量评价。运用支付意愿函数模型构建双边界二分式CVM数据分析模型,应用生存分析中的参数回归模型建立支付意愿影响因素分析模型。建立具有距离变量及个人社会、经济属性变量的支付意愿函数,验证支付意愿具有"距离衰减性"。研究采用以面访调查为主、网上调查为辅的方式,进行支付意愿问卷调查,得出2010年三江平原湿地生态保护的人均支付意愿为134.582元/a,三江平原湿地的生态保护价值为33.412亿元/a。研究结论为政府相关政策的制定提供参考依据。;The Contingent Valuation Method (CVM) is one of the most widely used methods to assess the values of natural resources and environmental goods. Through questionnaires, CVM induces people's preferences and makes an expression of monetization; the induced value of Willingness to Pay (WTP) is based on a hypothetical market. The inducing technique or the questionnaire format used to derive the maximum WTP is an important subject among CVM research. A great variety of questionnaire formats have been developed and applied in practice, among which the Dichotomous Choice CVM is considered one of the most advanced methods nowadays. The open-ended double-bounded Dichotomous Choice questionnaire, which is universally applied in foreign literature, combines the advantages of Dichotomous Choice and open-ended questionnaire. It induces the respondents' true WTP, reduces the deviation of assessment results, and thus makes the statistics results more accurate and reliable. In this study, with the open-ended double-bounded Dichotomous Choice CVM, we looked into the respondents' WTP mainly based on the interview survey and supplemented by the online survey, aiming to evaluate the ecological conservation value of Sanjiang Plain Wetland and the respondents' WTP to protect Sanjiang Plain Wetland ecology, and identify what factors influence their WTP. It is important to analyze what factors influence WTP in the related empirical studies. Researchers are continually attempting to expend the influential factors reflected by CVM. The spatial distance factor has now been gradually incorporated into the influential mechanism research of WTP in CVM. The respondents' WTP and the distance between respondents and environmental resource that serves as the evaluation object has a negative relationship, that is, the WTP of the respondents is relatively lower if they are further away from the evaluation object. This phenomenon is called the Distance Decay Effect. The distance factor is defined as the straight-line distance between the respondents and evaluation object, and incorporated into the WTP Function Model as an independent variable along with other personal, social and economic attribute variables to verify that the willingness has the characteristic of distance decay. The Dichotomous Choice CVM was used to evaluate the ecological conservation value of Sanjiang Plain Wetland. The WTP Function Model was applied to build the Double-bounded Dichotomous Choice CVM Data Analysis Model, and the parameter regression model of survival analysis was used to establish the influential factor analysis model of WTP. The conclusions are shown as follows: (1) in 2010, the WTP to protect Sanjiang Plain Wetland is RMB 134.582 per person, and the total ecological conservation value of Sanjiang Plain Wetland is RMB 3.3412 billion per year; (2) some factors have significant effects on the WTP, such as respondents' gender, age, educational level and personal annual income. The WTP is higher among people with higher education and income, while it is lower with the aggrandizing of age and distance. Besides, the WTP of female is significantly higher than that of male. The findings will provide useful references for government to make related ecological policies.

Determinants of the Price-Premium for Green Energy: Evidence from an OECD Cross-Section

Using data from a large, multi-country survey, this paper investigates the determinants of preferences for a completely green residential electricity system. Three important questions are addressed: (i) how much are households willing to pay to use only renewable energy? (ii) does willingness-to-pay (WTP) vary significantly across household groups and countries? and (iii) what drives the decision to enter the (hypothetical) market for green energy and, given entry, what drives the level of WTP? The analysis here differs from previous ones in the literature in two distinct ways: first, data and analyses are comparable across countries and second, a comprehensive attempt to understanding 0 WTP and to accommodating unobserved heterogeneity is pursued. The survey data indicate, in common with prior analyses and market experience, a low WTP, about 9-10%. This study addresses a key aspect: how important is income for understanding WTP, relative to more “attitudinal” determinants? Surprisingly, income exerts a small (and insignificant) effect on WTP, at the margin; this result is robust to accounting for censoring and unobserved heterogeneity. Key determinants of the WTP decision appear to be environmental attitudes, particularly membership in an environmental organization.

조건부가치측정법(Contingent Valuation Methods)을 적용한 공공도서관 가치의 비교 연구: 지불수단을 중심으로

ABSTRACT CVM (Contingent Valuation Method) has been most widely used for valuation of public libraries. However, there have been a debate on the validity of CVM in that many kind of biases could exist due to its hypothetical nature, the type of questions, payment vehicles and so on. To ensure the validity and reliability of public library valuation, this study analyzed the effects of payment vehicles to valuation using CVM . Three types of payment vehicle, tax, donation, fee were used to pay in hypothetical market. As a result, these payment vehicles estimated the different WTP and donation produ ced 14,542 won, which is the highest WTP. 키워드: 공공도서관, 가치측정, 조건부가치측정법, 지불수단public library, valuation, CVM, Contingent Valuation Method, pa yment vehicle *** 본 논문은 2009년 정부(교육과학기술부)의 재원으로 한국연구재단의 지원을 받아 수행된 연구임(NRF-2009-351-9).성균관대학교 정보관리연구소 전임연구원 (shpyo88@hanmail.net) ￭￭ 논문접수일자:2012년 5월 23일 ￭ 최초심사일자:2012년 5월 27일 ￭ 게재확정일자:2012년 6월 22일정보관리학회지. 29(2). 173-191, 2012. [http ://dx.doi.org/10. 3743/KOSIM.2012.29.2.173]

Using respondents’ uncertainty scores to mitigate hypothetical bias in community-based health insurance studies

Community-based health insurance has been implemented in several developing countries to help the poor to gain access to adequate health-care services. Assessing what the poor are willing to pay is of paramount importance for policymaking. The contingent valuation method, which relies on a hypothetical market, is commonly used for this purpose. But the presence of the hypothetical bias that is most often inherent in this method tends to bias the estimates upward and compromises policymaking. This paper uses respondents' uncertainty scores in an attempt to mitigate hypothetical bias in community-based health insurance in one rural setting in Cameroon. Uncertainty scores are often employed in single dichotomous choice surveys. An originality of the paper is to use such an approach in a double-bounded dichotomous choice survey. The results suggest that this instrument is effective at decreasing the mean WTP.

Combining contingent valuation with the analytical hierarchy process to decompose the value of rabbit meat

Our paper uses the analytical hierarchy process (AHP) to derive the willingness to pay (WTP) for complex goods with a range of attributes and attribute levels. The weights obtained from the AHP are used to decompose the aggregate WTP obtained from contingent valuation (CV) in a hypothetical simulated market. The empirical analysis uses consumer-level questionnaires to elicit information regarding consumer attitudes and preferences about rabbit meat in Catalonia (Spain). Our results demonstrate the suitability of our approach for analysing the consumer WTP for complex goods. Furthermore, the results demonstrate a relatively strong preference for entire rabbit meat from the “Catalan” region and a secondary strong preference for high-quality certification information.

Potential economic reforms in North Korea: a dynamic general equilibrium model

We use a dynamic general equilibrium model to examine hypothetical market reforms in North Korea. We model partial reform, in which producers choose capital allocations across sectors, with the government still fixing total capital. We also consider two full market reform scenarios. In one, public infrastructure investment remains unchanged, while, in the other, it increases substantially. In all scenarios, we assume a closed economy and a constant military size. Our simulations show little hope for the North Korean economy without boosting infrastructure. Although all of the reforms raise consumption, only significant increases in infrastructure investment bring positive economic growth.

PRS11 Budget Impact Analysis of Immunotherapy in Patients with Birch Allergic Rhinitis

A budget impact analysis was conducted to estimate the impact of Staloral Birch® on a market of selected number of relevant birch allergens. The hypothetical market for birch allergens consisted of 3 compounds; Staloral Birch®, ALK Depot SQ® and SLITone®. Randomized controlled trials have been performed to estimate safety and efficacy of Staloral Birch® and ALK Depot SQ®; however, for SLITone® no comparable evidence-based information is available. Actual German market data from 2008-2010 served as a basis for future estimates of market share development. Future predictions were made on market uptake and market dynamics (i.e. which drug increases their market share at the expense of another drug). German drug acquisition costs were taken from the Lauer-Taxe; average annual treatment related costs have been extracted from a recent cost-effectiveness analysis for grass allergens. The analysis perspective was that of the German payer (i.e. Statutory Health Insurance). Three different scenario analyses were conducted over a 5-year time horizon. The total market budget in 2010 for these 3 therapies was estimated to be € 36,485,362. It decreased with €2,263,694 over a 5-year period in the first scenario, when the annual uptake of Staloral Birch® was set at +6.9% with market dynamics of 80%/20% (ALK Depot SQ®/SLITone®). These savings represent 1.2% of the cumulative reference budget varying from 0.4% in 2011 to 2.1% in 2015. In the second scenario market uptake for Staloral Birch® was varied from +2% to +8% annually. Accordingly, the budget was reduced by €656,143 to €2,624,573. In the final scenario, shifting market dynamics from 90%/10% to 70%/30% (ALK Depot SQ®/SLITone ®) showed a reduction of €136,675 to €4,390,713. Increasing Staloral Birch® market share was estimated to result in a stable, if not decreasing budget with more patients treated using an evidence-based compound.

Análisis del efecto de los mercados de agua sobre el beneficio de las explotaciones, la contaminación por nitratos y el empleo eventual agrario

The evidence available about the external effects of functioning water markets is ambiguous. While some authors have shown that water exchanges diminishes the polluting effects of irrigated agriculture, others conclude otherwise. The joint use of contaminant input taxes and the establishment of water markets gives rise to ambiguous results, because water and fertilisers are not substitutes. The objective of this paper is to examine the joint effects of establishing an hypothetical spot water market among farmers and a nitrogen tax on irrigators’ benefits, nitrogen pollution and hired external labour. Two non-linear models are formulated and developed that simulate irrigators’ behaviour and the functioning of inter-district water markets in the Guadalquivir basin. Results show that water markets would increase hired farm labour and irrigators’ surplus, though at the cost of increasing nitrates pollution. The reduction of nitrates contamination achieved by the tax is attenuated as a result of water exchanges, which in turn contribute to reduce the negative income effects caused by the nitrates tax. Water markets increase unambiguously the social benefits resulting from increasing hired labour.

Comparison of simultaneous and combinatorial auction designs in fisheries quota market

Individual transferable quota (ITQ) markets are being used successfully to distribute quotas in single region and single species fisheries. In many parts of the world, the development of well crafted markets for multispecies or multiregional fisheries is still evolving. As a result, there exists an opportunity to inform policy by providing research insights into the relative merits of alternative market designs for such fisheries. This study explored the relative merits of a simultaneous ascending auction design and an iterative combinatorial auction design for a hypothetical multiple region quota market. In a simultaneous auction, separate auctions are run in parallel for individual species or regions. During intermediate rounds, fishers can adjust their bids in auction depending on their position in the other auction. In a combinatorial auction, a fisher can purchase a combination of quotas (or a package quota) for different fish species or regions in the same auction. Being able to acquire bundles of species or regions allows fishers to take advantage of complementarities. To date, the potentials of such auctions have not been thoroughly tested in fisheries quota markets. This study found that while a simultaneous auction design was more efficient than combinatorial auction design overall, combinatorial market design took fewer rounds to make final allocations and performed better in high synergy environments. ► Fishers often have synergies in their valuations for ITQs for multiple regions. ► An ABM used to test market designs for quota allocation among fishers with value synergies. ► For the first time, a simultaneous (SA) and a combinatorial (CA) auction designs compared for ITQ market. ► Simulation results showed that SA design was more efficient than CA design overall. ► However, CA design performed better in high synergy environments.

The impact of biofuels on the propensity of land-use conversion among non-industrial private forest landowners in Florida

A hypothetical market for renting and converting forested land into row cropping for biofuel production revealed that nearly half of the 1060 non-industrial landowners sampled in Florida are willing to accept payments for land type conversion and the resulting supply function is inelastic and positive. While respondent's previous involvement with forest management cost-share program increased their probability of accepting payments for forest type conversion, those who indicated forest aesthetics as the primary reason for the land ownership were less likely to participate in this hypothetical market.

Ecovalue08–A new valuation set for environmental systems analysis tools

In environmental systems analysis tools such as cost-benefit analysis (CBA), life-cycle assessment (LCA) and Environmental Management Systems (EMS), weighting is often used to aggregate results and compare different alternatives. There are several weighting sets available, but so far there is no set that consistently use monetary values based on actual or hypothetical market valuation of environmental degradation and depletion. In this paper, we develop a weighting set where the values are based on willingness-to-pay estimates for environmental quality, and market values for resource depletion. The weighting set is applied to three case studies and the outcome is compared with the outcomes from three other weighting sets, Ecotax02, Ecoindicator99 and EPS2000. We find that the different sets give different results in many cases. The reason for this is partly that they are based on different values and thus should give different results. However, the differences can also be explained by data gaps and different methodological choices. If weighting sets are used, it is also important to use several to reduce the risk of overlooking important impacts due to data gaps. It is also interesting to note that though Ecovalue08 and Ecotax02 give different absolute values, the results are very similar in relative terms. Thus the political and the individual willingness-to-pay estimates yield a similar ranking of the impacts.