Mean Willingness To Accept Research Articles

A community group decomposition of the willingness to accept: evidence from sand, stone and gravel mining activities in Padang Pariaman, West Sumatra, Indonesia

ABSTRACT Households in the immediate vicinity of sand, stone and gravel river mining all receive negative externalities, but some of them also benefit from mining activities. Differences in the perceived effects between community groups affect their acceptance of negative externalities. This study decomposes the calculation of the mean willingness to accept (MWTA) negative externalities from river mining activities between two community groups in the Batang Anai River area in the Padang Pariaman Regency, Sumatra, Indonesia: (a) farmers and (b) individuals involved in mining activities. First, the logit model is used to determine the effect of household characteristics on the probability of the community declaring environmental degradation. Next, the dichotomous choice contingent valuation method (DC-CVM) is employed to estimate the residents’ willingness to accept (WTA) the minimum value of compensation due to negative externalities from mining activities. We utilise four scenarios to prove the presence of bias if the decomposition is not taken into account in estimating the MWTA. According to estimation results, individuals who are engaged in mining have a 21% lower MWTA value than farmers. Meanwhile, indirectly affected communities who engage in mining have a MWTA value that is 32% lower than that of farmers. The implication of this study is that the decomposition of the MWTA by community groups is important to provide the real value of negative externalities.

Economic Valuation of Sentul Chicken in the Framework of Providing Incentives and Sustainability of Animal Genetic Resources (AnGR) in Ciamis District, West Java

The purpose of this study was to examine the economic valuation of Sentul chicken to determine the amount of incentive farmers should receive. A survey method has been conducted as the research methodology. The research location was determined purposively, namely in accordance with the research objectives, on the basis of several considerations, the location where the research was located was the Sentul chicken development center where there were active farmer groups. A total of 39 farmers who had a minimum of 100 Sentul chickens/year were censused to become respondents. Data collection was carried out in May - August 2022. The data were analyzed by the contingent valuation method (CVM) using the willingness to accept (WTA) approach in the bidding game. The WTA value sought is the Total WTA (TWTA) and Mean WTA (EWTA) which are converted into incentive values for farmers. Multiple regression analysis has been applied to investigate any significant factors that affected the WTA value. The study results show an estimated total WTA value of IDR 191,220,000 per year and an estimated WTA value of IDR 178,974.36 per chicken per year. Education, experience, land area, income, livestock orientation, and pride are WTA factors that impact farmers, as income (0,024) and pride (0,000) become the most influential factors. Efforts to conserve Sentul chickens can be realized using the incentives indicated by a high WTA value. Therefore, policy makers can conserve Sentul chickens using an incentive approach.

Herdsmen's willingness to accept compensation for grazing ban compliance: Empirical evidence from pastoral China

Payment for ecosystem services (PES) has gained popularity in balancing environmental degradation and economic development. However, many of its key features, particularly price differentiation, are often not considered during design and implementation. Taking China's grassland ecological compensation policy as an example, we empirically examine herders' willingness to accept (WTA) compensation for grazing ban compliance, based on a survey dataset of 352 herder households in the pastoral areas of the Gansu and Qinghai provinces in China. A double-bounded dichotomous choice contingent valuation design was adopted, with interval regression and bivariate probit models adjusted for potential bid anchoring utilized to obtain reliable WTA estimates. The results show that the mean WTA ranges between CNY 193 and CNY 274 per mu, which is significantly higher than the present universal compensation level. Herdsmen's WTA is significantly and positively associated with household size and having migrant worker family members, while it is negatively influenced by age, environmental perception , household income, and sandy soil. We suggest that the basic institution of China's grassland ecological compensation policy (GECP) should be reformed to allow price differentiation, bottom-up participation, and performance-dependent payments. • We examine herdsmen's willingness to accept (WTA) for grazing ban compliance. • A double-bounded dichotomous choice contingent valuation design is adopted. • Estimated WTA is substantially larger than the current compensation level. • WTA decreases with herdsmen's environmental perception. • Price differentiation and bottom-up participation should be allowed.

On the economic evaluation of online learning in higher education during the COVID-19 pandemic: a willingness-to-accept approach

Purpose This study, using a contingent valuation approach, aims to shed light on the economic evaluation of online learning during the first wave of the pandemic. Design/methodology/approach A sample of 959 higher education students was asked about their willingness-to-accept (WTA) a monetary compensation for the loss of well-being resulting from the unexpected and mandatory transition to the online space. In explaining WTA determinants, the authors test the appropriateness of the double-hurdle model against the alternative of a Tobit model and find that the factors affecting the participation decision are not the same as those that affect the quantity decision. Findings Results show that a vast majority of the respondents think that the abrupt transition to online learning is detrimental to them, while those willing to accept a monetary compensation account for 77% of the sample, being the mean WTA between €448 and €595. As expected, WTA decreases with income and age, and it increases if some member of the family unit is unemployed. By aggregating the mean WTA by the population affected, total loss of well-being is obtained. Originality/value To the best of the authors’ knowledge, to date, this method has not been used to value online learning in a WTA framework, much less in the particular context of the pandemic. Thus, based on the understanding that the economic evaluation of online learning could be very useful in providing guidance for decision-making, this paper contributes to the literature on the economic evaluation of higher education.

Willingness of tobacco farmers to accept compensation for tobacco crop substitution in Lichuan City, China

ObjectiveThis study, conducted in China, explores tobacco farmers’ willingness to accept (WTA) compensation for tobacco crop substitution.MethodsThe contingent valuation method was used to elicit farmers’ WTA compensation. A face-to-face survey...

Increasing provision of ecosystem services through participation in a conservation program

Grasslands provide a variety of goods and services that benefit humans, but only a few have a market value. Despite the benefits provided, native grasslands continue to be degraded. Lack of a proper valuation, including a monetary value of grassland nonmarket goods and services, has become one of the factors contributing to the degradation trend. The objective of this research was to quantify the cost of increasing the provision of ecosystem services from grassland ecosystems in the Gulf Coastal Plains and Ozarks (GCPO) Landscape Conservation Cooperative geographic area of the U.S. A contingent valuation method (CVM) was used to estimate landowner willingness to accept (WTA) monetary compensation in exchange for implementing management practices preserving grassland ecosystems. The mean WTA compensation was $290.10 per acre per year for a 10-year contract. Required compensation increased with landowner income, frequency of contacts with state wildlife agencies, and percentage change in grassland area. Landowner age and proximity to the nearest local park were negatively associated with WTA. The total cost of preserving ecosystem services, estimated based on WTA, was US$3 billion per year and 57 times larger than the 2016 Conservation Reserve Program (CRP) allocation for this purpose in the amount US$50 million. However, the preservation cost varied from US$1.7 million to 1.1 billion depending upon the number of ecological attributes to be preserved and corresponding levels of ecosystem services. Results will be helpful in quantifying future funding levels necessary for implementation of coordinated conservation activities in grasslands and other ecosystems, prioritizing ecosystem services for restoration, and developing conservation programs in the U.S. and other countries.

WTA-WTP Disparity: The Role of Perceived Realism of the Valuation Setting

Based on a survey among more than 5,000 German households and a single-binary choice experiment in which we randomly split the respondents into two groups, this paper elicits both households' willingness to pay (WTP) for power supply security and their willingness to accept (WTA) compensations for a reduced security level. In accord with numerous empirical studies, we find that the mean WTA value substantially exceeds the mean WTP bid, in our empirical example by a factor of 3.56. Yet, the WTA-WTP ratio decreases to 2.35 among respondents who believe that the hypothetical valuation setting is likely to become true. Conversely, the WTA-WTP ratio increases to 3.81 among respondents who deem the setting unlikely. On the basis of these results, we conclude that inquiring about respondents' perception of the realism of the valuation setting is an easy-to-implement and promising survey element to mitigate excessive WTA-WTP disparities, particularly if private or quasi-public goods are under scrutiny.

Estimates of willingness to accept compensation to manage pine stands for ecosystem services

Many ecosystem services are often overlooked in active management of private forests leading to their production below the levels preferred by the society. This study used the contingent valuation method (CVM) to estimate willingness to accept (WTA) compensation for managing a hypothetical tract of loblolly pine (Pinus taeda) for multiple ecosystem services. The CVM scenario involved four forest management alternatives representing increasing levels of forest management restrictions. A structural random effects probit model was constructed to quantify WTA compensation amounts. Mean WTA estimates ranged from $190.22 to $595.23 per hectare (ha) per year and increased with the intensity of forest management restrictions. Based on the WTA estimates, the total cost of increasing ecosystem production ranged from $0.88 to $4.76 billion per year. Increased budgets and private partnerships might be needed to implement forest management regimes facilitating multiple ecosystem services.

Evaluation of households’ willingness to accept the ecological restoration of rivers flowing in china

During the past decade, many urban rivers in China have undergone ecological restoration overseen by government agencies at the local and national level. Ecological restoration efforts such as this can improve the welfare of urban residents. This study reports the willingness to accept (WTA) for Pingjiang and Guangtaiwei rivers degradation in Suzhou based on a contingent valuation study of 426 respondents. Our results indicate that 48% of respondents would not accept any money as compensation for river degradation. The mean WTA estimate for those willing to accept a finite amount of compensation is 39,607 RMB, while the median WTA estimate for this group is 25,000 RMB. Results from the econometric model show that residents who have previously donated in support of environmental causes, are more satisfied with the river, more frequently come in contact with the river, who are employed, and who own a house are less likely to provide a finite WTA amount. Moreover, the results also indicated that residents who have lived around the river for longer periods, who live near the river, who are younger, who have larger families, who have not donated to environmental issues, and who are unsatisfied with the landscaping around the river are willing to accept more money. Our results provide an estimate of the average welfare loss associated with not restoring rivers, while also suggesting that there is considerable heterogeneity in the responses of those willing to accept a finite WTA payment as well as those who reject such compensation. © 2018 American Institute of Chemical Engineers Environ Prog, 38:e13094, 2019

The Monetary Value of Informal Care: Obtaining Pure Time Valuations Using a Discrete Choice Experiment

Interventions in health care often not only have an effect on patients, but also on their informal caregivers. Caregiving can have a profound impact on the health and wellbeing of carers. Ignoring these spillovers in economic evaluations risks labelling interventions mistakenly as cost-effective, at the expense of informal caregivers. This paper investigates willingness-to-accept (WTA) values for an hour of informal care, corrected for positive and negative impacts of informal care, to facilitate the inclusion of informal care hours on the cost side of economic evaluations without double-counting spillover effects. A discrete choice experiment (DCE) was conducted among a representative sample of the adult population in the Netherlands (n = 552) in September 2011. An experimental design minimizing the D-error was used to construct choice sets with two unlabelled alternatives with the attributes 'hours caregiving', 'monetary compensation for caregiving' and seven impacts of caregiving. To operationalize the random utility model, we used a panel mixed multinomial logit (MMNL) parameter model. For calculation of WTA, we used both population-level parameters and individual-level parameters. The mean WTA for an additional hour of informal care, corrected for positive and negative impacts of informal care, was €14.57. The signs of the coefficients were all in the expected directions. This study reports a preference-based monetary value for informal care, corrected for other impacts. This valuation facilitates the inclusion of informal care hours on the cost side in economic evaluations without double-counting any spillover effects included on the effects side.

Estimation of Rural Households’ Willingness to Accept Two PES Programs and Their Service Valuation in the Miyun Reservoir Catchment, China

As the only surface water source for Beijing, the Miyun Reservoir and its catchment (MRC) are a focus for concern about the degradation of ecosystem services (ES) unless appropriate payments for ecosystem services (PES) are in place. This study used the contingent valuation method (CVM) to estimate the costs of two new PES programs, for agriculture and forestry, and to further calculate the economic value of ES in the MRC from the perspective of local rural households’ willingness to accept (WTA). The results of Logit model including WTA and the variables of household and village indicate that the local socio-economic context has complex effects on the WTA of rural households. In particular, the bid amount, location and proportion of off-farm employment would have significant positive effects on the local WTA. In contrast, the insignificance of the PES participation variable suggests that previous PES program experiences may negatively impact subsequent program participation. The mean WTA payments for agriculture and forestry PES programs were estimated as 8531 and 8187 yuan/ha/year, respectively. These results consistently explain the differentiated opportunity costs on both farmland and forestry land. Meanwhile, the differentiated WTA values in Beijing vs. the surrounding Hebei Province follow the interest differences and development gaps between jurisdictions. Finally, the total economic value of ES in the MRC area was estimated at 11.1 billion yuan/year). The rational economic value of ES for the restoration priority areas reaches 515.2 million yuan/year. For the existing budget gap (299 million yuan/year), the study proposed that decision makers increase the water tariff by 0.08 yuan to raise the funds needed. The study also concluded that these results are not only financially and politically feasible but also cost-effective. This study has policy implications for improving the implementation efficiency and providing quantified supports for PES programs in megacity source water area.

Measuring the Monetary Value of Dental Implants for Denture Retention: A Willingness to Pay Approach.

Purpose:Two interforaminal dental implants in is a common treatment option for denture retention in edentulous patients. Economic methods to assess the patient’s quality of life include the willingness to pay (WTP) for implant treatment and willingness to accept (WTA) to forgo implant treatment. The purpose of this study was to assess the monetary value of implant retained complete dentures using WTP and WTA.Methods:We included a convenience sample of 16 patients from a previously published cohort study on the survival of immediately loaded implants in edentulous patients to assess WTP and WTA for this treatment option.Results:The average maximum WTP for implant treatment was 4606 (95% CI: 2991-6222) Swiss Francs. Out of the 16 patients, only 5 were willing to trade their implants for money, with a mean WTA of CHF 33'500 (range: 3000-100'000).All patients would agree to undergo the implant surgery procedure again.Conclusion:The results of the present study show that most patients are not willing to trade the increase in quality of life after implant surgery against money, suggesting that WTA exceeds by large WTP for the same health condition.

Health Benefits and Industrial Air Pollution: A Comparison between People’s Willingness to Accept and the Opportunity Cost of Health Risk

The disparity between willingness to accept (WTA) health risks and actual health risks arising from environmental pollution has not been demonstrated well in the literature. This study provides evidence on WTA for bearing existing health risks arising from environmental pollution caused by the Limestone Industry in Sri Lanka. It compares mean WTA with monthly average health expenditure as well as the opportunity cost of health risk. The study finds that the average monthly health expenditure, averting expenditure and lost earning per person were Rs. 168, Rs. 85 and Rs. 262 respectively. Accordingly, opportunity cost of the health damage was Rs. 515 while mean willingness to accept was Rs. 792 per person. Results clearly show that mean WTA estimates tends to overestimate the true cost. The study also summarizes reasons for the disparity and then discusses some of the key implications of the analysis. Sri Lankan Journal of Agricultural Economics Vol.(14-15)No. 1 (2012-2013) pp. 43-58

Assessment of greening and collective participation in the context of agri-environmental schemes: The case of Andalusian irrigated olive groves

Agri-environmental schemes (AES) in irrigated olive groves (IOG) in southern Spain were assessed based on farmers’ preferences toward these schemes. A choice experiment was used in this ex-ante assessment, with the inclusion of some innovative elements, such as collective participation and ecological focus areas (EFA). The results showed that farmers’ mean willingness to accept (WTA) participation in collective rather than individual AES was €124.5/ha. Their mean WTA for an additional 1% of EFA was €64.6/ha, while regarding the use of other agri-environmental practices, they showed a WTA of €6.3/ha and €114.7/ha for an additional 1% in the use of cover crops (CC) in olive grove areas and restrictive management of CC, respectively. These estimates were strongly influenced by farmers’ expectations and socio-economic characteristics, as well as farm management. We obtained that farmers’ expectations of no farm takeover reduce WTA for collective participation, whereas agricultural training and having at least a secondary-school education reduce farmers’ WTA for EFA and restrictive management of the CC, respectively. Conversely, harvesting ground olives increased farmers’ WTA for a high proportion of the area under CC. The analysis of the AES scenarios showed moderately high estimates of total WTA (€101-349/ha), especially when collective participation is required (€225-474/ha). The results supported the argument that there are efficient ways to encourage public goods provision, overcoming trade-offs with private goods provision by identifying the type of joint production.

Would you test for 5000 Shillings? HIV risk and willingness to accept HIV testing in Tanzania.

ObjectivesDespite substantial public health efforts to increase HIV testing, testing rates have plateaued in many countries and rates of repeat testing for those with ongoing risk are low. To inform policies aimed at increasing uptake of HIV testing, we identified characteristics associated with individuals’ willingness-to-accept (WTA) an HIV test in a general population sample and among two high-risk populations in Moshi, Tanzania.MethodsIn total, 721 individuals, including randomly selected community members (N = 402), female barworkers (N = 135), and male Kilimanjaro mountain porters (N = 184), were asked in a double-bounded contingent valuation format if they would test for HIV in exchange for 2000, 5000 or 10,000 Shillings (approximately $1.30, $3.20, and $6.40, respectively). The study was conducted between September 2012 and February 2013.ResultsMore than one quarter of participants (196; 27 %) stated they would be willing to test for Tanzania Shilling (TSH) 2000, whereas one in seven (98; 13.6 %) required more than TSH 10,000. The average WTA estimate was TSH 4564 (95 % Confidence Interval: TSH 4201 to 4927). Significant variation in WTA estimates by gender, HIV risk factors and other characteristics plausibly reflects variation in individuals’ valuations of benefits of and barriers to testing. WTA estimates were higher among males than females. Among males, WTA was nearly one-third lower for those who reported symptoms of HIV than those who did not. Among females, WTA estimates varied with respondents’ education, own and partners’ HIV testing history, and lifetime reports of transactional sex. For both genders, the most significant association was observed with respondents’ perception of the accuracy of the HIV test; those believing HIV tests to be completely accurate were willing to test for approximately one third less than their counterparts. The mean WTA estimates identified in this study suggest that within the study population, incentivized universal HIV testing could potentially identify undiagnosed HIV infections at an incentive cost of $150 per prevalent infection and $1400 per incident infection, with corresponding costs per quality adjusted life year (QALY) gained of $70 for prevalent and $620 for incident HIV infections.ConclusionsThe results support the value of information about the accuracy of HIV testing, and suggest that relatively modest amounts of money may be sufficient to incentivize at-risk populations to test.

Incentives for waste cooking oil collection in South Korea: A contingent valuation approach

This study examines Korean households’ participation in waste cooking oil (WCO) collection when an incentive is provided, which has rarely been discussed in the existing literature. Using the contingent valuation method, we examine three issues. First, we investigate factors that can potentially increase participation in WCO collection, revealing that the collection system, expenditures on cooking oil, incentive levels, and the number of family members affect respondents’ participation in WCO collection. Second, we analyze the incentive level required to attract Korean households to participate in WCO collection. This level is approximated as the willingness to accept (WTA) the utility losses engendered by participation. The mean WTA value under a drop-off system is KRW 772 (USD 0.70) per liter of WCO, whereas the mean WTA under a curbside system is KRW 546 (USD 0.21) per liter. Finally, we consider the potential effects of providing an incentive for participation in WCO collection and show that this would be likely to increase WCO collection from households but would not significantly contribute to an increase in the volume of domestic feedstock for biodiesel.

Forest owners' willingness to accept contracts for ecosystem service provision is sensitive to additionality

A key prerequisite to ensure that payment for ecosystem services is effective is that the management measures landowners are paid to undertake are in fact additional to the status quo and hence bring about a change in provision.We investigated Danish forest owners' preferences for conditional contracts for the provision of ecosystem services in Natura 2000 policies in a sample covering 12.5% of the total private forest area. This involves allowing old trees to decay naturally, setting aside forest areas, accepting a fixed percentage of broadleaves and increasing access for the public. Forest owners may already provide some of these, e.g., if they derive private benefits from them, in which case additionality becomes an issue. This study investigates the link between forest owners' current management and their willingness to accept (WTA) payments for providing specific ecosystem services by eliciting current practice prior to a choice experiment on contracts. For most of these ecosystem services, owners differentiate their WTA significantly according to their current management. Owners who did not provide extended access had a mean WTA of €14/ha/year for accepting access up to 15m from roads and paths and €28/ha/year for accepting access everywhere in their forest. However, forest owners who already allow extended access have a mean WTA around zero.

Households Willingness to Accept Collection and Recycling of Waste Cooking Oil for Biodiesel Input in Petaling District, Selangor, Malaysia

The main reasons for the recent growing concern about waste cooking oil (WCO) are the resulting effects of its improper disposal on one hand and viability input in biodiesel production on the other. This study applied contingent valuation method (CVM) to estimate households’ willingness to accept (WTA) collection and recycling of WCO in Petaling district, Selangor, Malaysia. The results revealed that the bid, income level, age level, higher educational level (university), Malay, Chinese, and female were the significant predictors of WTA. The mean WTA of the households was MYR 0.72 per kg of WCO and the annual running cost for the programme was MYR 9, 438, 829. These results will help the relevant authorities in their efforts to enhance WCO collection and recycling programme in Petaling District, Selangor.

Quantification of the subjective labour load of a filmless radiology system by the contingent valuation method: a pilot study

Background: A filmless radiology system, which implements a radiology information system and picture archiving and communication system, brings major changes in the work patterns of radiologists and radiological technologists. The purpose of this study was to prospectively quantify the subjective labour load of a filmless radiology system for radiologists and radiological technologists by the contingent valuation method (CVM) and to evaluate the economic labour value. Methods: The questionnaire survey included 14 radiologists and 46 radiological technologists. There was a 75% effective response rate with a total of 45 respondents. The subjective labour load of a filmless radiology system was quantified by the CVM as willingness to accept (WTA). The double-bound dichotomous choice approach was employed for the questionnaire format for WTA. Logistic regression analysis was used to identify the factors affecting WTA. Results: The median and mean WTA per month for radiologists were estimated to be 82,902 yen ($829) and 46,808 yen ($468), respectively. The median and mean WTA for radiological technologists were estimated to be 15,622 yen ($156) and 16,784 yen ($168), respectively. Logistic regression analysis showed promotional view (i.e., willingness to introduce computerization of medical information) as the only significant factor affecting WTA for radiological technologists (p < 0.05). Conclusions: The change from film-based- to filmless- radiology system would be acceptable providing that medical staff in the department of radiology think their labour changes would yield an increase of satisfaction equivalent to 1,430,000 ($14,300) -1,880,000 yen ($18,800).

The value of informal care–a further investigation of the feasibility of contingent valuation in informal caregivers

Including informal care in economic evaluations is increasingly advocated but problematic. We investigated three well-known concerns regarding contingent valuation (CV): (1) the item non-response of CV values, (2) the sensitivity of CV values to the individual circumstances of caring, and (3) the choice of valuation method by comparing willingness-to-pay (WTP) and willingness-to-accept (WTA) values for a hypothetical marginal change in hours of informal care currently provided.The study sample consisted of 1453 caregivers and 787 care recipients. Of the caregivers, 603 caregivers (41.5%) provided both WTP and WTA values, 983 (67.7%) provided at least one. Determinants of non-response were dependent on the valuation method; primary determinants were education and satisfaction with amount of informal care provided. Caregivers' mean WTP (WTA) for reducing (increasing) informal care by 1 h was euro9.13 (10.52). Care recipients' mean WTA (WTP) for reducing (increasing) informal care by 1 h was euro8.88 (euro6.85). Values were associated with a variety of characteristics of the caregiving situation; explanatory variables differed between WTP and WTA valuations. The differences between WTP and WTA valuations were small.Based on sensitivity CV appears to be a useful method to value informal care for use in economic evalations, non-response, however, remains a matter of concern.