Non-market Valuation Research Articles

Beyond aquifer boundaries: unveiling the multi-dimensional value of groundwater management in Jeju, Korea

ABSTRACT This paper presents a comprehensive analysis of groundwater valuation in Jeju Island, Korea, which relies heavily on groundwater resources. The research addresses the limitations of conventional valuation methodologies that often undervalue groundwater management and ignore spatial heterogeneity. We employ three non-market valuation aggregation methods: local benefit, national benefit, and a combined heterogeneous benefit approach. The heterogeneous benefit approach divides the population into groups based on their distinct groundwater valuations and then consolidates their willingness to pay. Using a contingent valuation method, we analyze survey data from 542 respondents in Jeju and 1,000 respondents nationwide to capture the comprehensive value of improving groundwater quality, considering both local and non-local dependencies. Results show that national benefits exceed local benefits by a factor of 21.4, and this disparity increases to 21.6 when spatial heterogeneity is included. These findings highlight a significant underestimation in previous studies focusing solely on local beneficiaries. Our approach enhances understanding of the varied values attributed to groundwater by different populations, providing crucial insights for sustainable water resource management

Assessing environmental liabilities of mining in Northern Australia: A Case study of the McArthur River Mine

Mining projects supposedly offer enormous economic benefits; however, they often involve serious environmental liabilities that extend far beyond the life of the mine, including perturbing the ecological balance and causing the loss of ecosystem services that are vital for sustaining human well-being. Understanding and assessing the environmental liabilities of mining is crucial for estimating the costs of restoring, replacing, or providing the equivalent of the damaged natural resources. This study estimates the market and non-market values of the mining impacts in the Northern Territory, Australia, particularly for the McArthur River Mine. We assess these costs by applying the Replacement Cost, Welfare Costs Savings, and Basic Value Transfer methods in terms of the loss of local Indigenous communities' well-being, loss of ecosystem services from native vegetation and freshwater, and the opportunity cost of the mine site none of which are not fully accounted for in the mining operator's environmental assessments and mitigation measures approved by the local governmental authorities. Our valuation analysis indicates that the market value of the environmental and social impacts of mining ascends to AUD 1.1 billion per year while the non-market value is AUD 20 million per year. Assessing mining-related environmental liabilities offers crucial insights for informed decision-making regarding mitigation and remediation efforts and strengthening environmental and mining legislation in the Northern Territory. In conclusion, our study contributes to developing a comprehensive understanding of the true economic impact of mining activities on ecosystems and local Indigenous communities.

Evaluating the Economic Viability of Agro-Ecotourism as a Nature-Based Solution for a Climate Adaptation Strategy: A Case Study of Yuanshan Township, Taiwan

This study applied the contingent valuation method to evaluate the economic viability of climate adaptation policies in the climate-fragile Yuanshan Township (YST), Taiwan, focusing on the balance between forest conservation and local livelihoods. Traditional agriculture in YST is transitioning to agro-ecotourism, supported by leisure-oriented and hillside forest protection policies that attract visitors and cause the local economy to thrive. This research used non-market valuation methods to quantify the value of local recreational resources perceived by visitors at NTD 1002.00 per visitor. The findings indicate that visitors’ willingness to pay for these resources is significantly influenced by their intention to revisit YST, their trust in local conservation efforts, their gender, and their income. The value that visitors place on recreational resources and the aforementioned significant determinants of their willingness to pay highlight the economic potential of agro-ecotourism in supporting both environmental sustainability and community income. This study emphasizes that successful nature-based climate adaptation must consider the economic interests of resource users and local residents. Agro-ecotourism in YST is shown to be a viable policy for balancing forest conservation with societal benefits, providing a model for the sustainable management of local resources. The economic benefits from this transition underscore the feasibility of agricultural transformation for community income generation and climate resilience, demonstrating that environmental and economic goals can be mutually supportive in addressing climate change.

Empirical Review on Determinants of Willingness to Pay for Natural and Environmental Resource Valuation: Meta-Analysis

Even if natural and environmental resource plays detrimental role prosperity of nations, measuring their value is highly problematic. Lack of realistic markets data to estimate its value for the goods and services necessitates the use of nonmarket valuation techniques. The meta-analysis was carried out to see the mean size effect of certain demographic, socioeconomic and institutional factors on willingness to pay of natural resources conservation and improvement. The empirical analysis review was done on about 57 published articles for total of 116 observations. The data synthesis was done from published articles include coefficients of explanatory variable and standard error, model used, value measured, study region, sample size and publication from the year of 2002 up to 2019 year. The data analyzed in excel sheet and SPSS software. The study countries were Ethiopia, Uganda, Kenya, Guinea, Nigeria, Malaysia, USA, Iraq, China and India. The result confirmed that measurement errors and heterogeneity of case studies, interviewed resulted difference in willingness to pay estimate. The result implied inverse relationship between willingness estimate and environmental resource valued and study destination [Eat Africa]. The meta-analysis indicated mean size effect of willingness to pay defined as function of income, age, bid value, occupation, sex, knowledge, and education level of respondents. The empirical analysis result showed that increasing awareness, enabling to expand income earning believed to increase the willingness to pay value.

Evaluating the tangible and intangible parameters of cultural heritage: an economic meta-analysis in a global context

Sustainable development ensures the longevity of civilization by balancing economic growth, environmental protection, and social equity. The present study evaluates cultural heritage assets via a meta-regression analysis function transfer, in which 85 studies were examined that revealed 106 different willingness-to-pay (WTP) values in the period 1995–2022. The meta-regression methodology enables the valuation of cultural heritage—tangible and intangible—goods and services, as well as cultural values (e.g. aesthetic, spiritual, symbolic, etc.). The utilization of WTP would enable us to compare the two models (i.e., European and non-European) on how much a citizen would value cultural heritage based on non-market valuation. The results would inform policymakers about the importance of cultural heritage assets in the sustainable development agenda. The empirical findings present that the WTP for the European sample is 37.6€ and for the non-European is 60.12€. In essence, the Europeans are influenced mainly by intangible cultural assets, whereas non-Europeans are influenced by oral tradition. Overall, cultural heritage conservation necessitates for proper economic valuation through a holistic approach, in short—the valuation of both tangible and intangible cultural goods and services is imperative for sustainable development.

The value of national defense: Assessing public preferences for defense policy options

Defense spending accounts for a large share of the budget in many countries, but the value of the resulting public good – national defense – has so far escaped assessment. Much of the literature has instead considered indirect benefits of defense spending in terms of greater economic growth or technological spillovers. In this paper, we assess the direct welfare effects of defense policy, namely an increase in the security of citizens, by means of a survey-based discrete choice experiment. Drawing on a representative sample of the German population, results suggest substantial willingness to pay for an increase in troop numbers, the establishment of a European army and an improved air defense system. The reintroduction of compulsory military service does not enjoy public support. Results further indicate substantial preference heterogeneity across respondents and policy options which we explore. As such, these findings demonstrate how methods of survey-based, non-market valuation can help to refine research in this area of public policy.

The Nature of the Beast: Wildlife Valuation from the Iconic to the Ordinary

Wildlife species generate significant economic value through recreational opportunities, ecosystem services, and their existence and preservation for future generations. Policymaker decisions about fish and wildlife conservation, population management, hunting and fishing limits, and damage assessments all rely to some extent on nonmarket valuation estimates of the species in question. Focusing on individual species, we present a comprehensive review of the nonmarket valuation literature from 1990 to 2023. We quantify studies by species and synthesize the characteristics of these species. We examine why certain species or uses have been the historical focus. Finally, we offer some insights into gaps in our knowledge and directions for future research. While the wildlife valuation literature is extensive, we question the scope of coverage and speculate on the reasons for such heavy coverage of some species and limited coverage of others. Charisma, endemism, and rarity play a large role, as do species with large use values.

The value of organic agriculture beyond contemporary food sufficiency in the developing world

Understanding the value of organic agriculture beyond contemporary food sufficiency is crucial in addressing sustainable agriculture and the welfare of the community. Yet, economic analysis of agricultural output usually focuses on crop yield rather than other intangible values related to environmental health, which mainly encompass human health and the environment. The non-marketable value of the ecosystem services in organic agriculture is always higher than in conventional agriculture. When the non-market value is considered during yield assessment, the difference in crop yield between organic and conventional agriculture may be insignificant or even higher for organic. This paper aims to give a gritty overview of the intangible values of organic agriculture in comparison with conventional agriculture to account for other environmental and health benefits associated with organic farming. This is crucial because productive agroecosystems for sustainable development should be able to meet the needs of the present generation without compromising the ability of the future generation to meet their needs. It has been revealed that the application of ecological principles under organic agriculture brings several environmental and socio-economic benefits. Therefore, there is a need to explore some insights into the values of organic agriculture beyond the contemporary food sufficiency which are usually given less attention during economic analysis, for increased understanding and adoption of this kind of farming to harness the associated potentials.

Non-market value losses to coastal ecosystem services and wetlands from sea-level rise and storm surge, 2050 to 2100: The Kimberley Region, Western Australia

Accelerating climate change from the thermal expansion of oceans and losses from terrestrial glaciers and ice sheets causes sea level rise (SLR), damaging coastal ecosystems and generating non-market value losses. Using an innovative Artificial Intelligence (AI) projection method and 18 existing geographical SLR projections, we project future sea level rise and storm surge (SLR/S) for the 1600 km coastline of the Kimberley Region, Western Australia, a region with a larger surface area than Great Britain, Ireland, and Portugal combined and with a permanent population of 40,000 people of which more than 16,000 identify as Indigenous. Using our projected coastal area inundation from future SLR, we estimated the non-market value losses of the Kimberley's coastal ecosystem and wetlands with projected SLR/S to 2050 and 2100 for Representative Concentration Pathway (RCPs) 4.5 and 8.5. Average annual non-market losses from SLR/S in 2050 and 2100 in the Kimberley are large relative to the size of the regional economy and are estimated to range from A$2.7 to A$4.3 billion (2050) and A$8.1 to A$15.8 billion (2100), depending on the RCP and temperature pathway. Our findings highlight the need for adequately resourced community-based approaches to climate adaptation.

Economic Evaluation of Water Management Alternatives in the Upper Green River Basin of Wyoming

Water use efficiency measures are generally recommended to reduce water use. Yet, flood irrigation practices in high-elevation mountain valleys of the Colorado River Basin headwaters generate return flows, which support late-season streamflow and groundwater recharge. Return flows support the ecosystem and provide recreational benefits. This study provides a framework for quantifying how land-use changes and associated return flow patterns affect the economic value of water across uses in a hydrologically connected, shallow alluvial aquifer system. This study first investigates how return flow patterns could change under three alternatives to flood irrigation: an increased use of center pivots, increased residential development, and conversion to pasture. The brown trout was used as an indicator species to track eco-hydrology, return flow, and capacity for recreational activities under each alternative. Estimates from the non-market valuation literature coupled with predicted changes in brown trout productivity approximate associated changes to recreational angler value. Recreational angler values are highest under the flood irrigation alternative. The inclusion of recreational angler values with agricultural values alters the magnitude of returns but not the rankings. These results highlight the potential heterogeneity of conclusions to be drawn regarding water use efficiency, depending on the economic value of water in different uses and the degree of hydrologic connectivity. This study also highlights data gaps and modeling needs for conducting similar future analyses.

Valuing wildlife sightings at the species-wide and individual animal levels: an approach and application to bear viewing in Yellowstone National Park

ABSTRACT Wildlife viewing is a popular recreation activity in parks and protected areas around the world, yet information on the nonmarket value that visitors derive from viewing specific species, and how that value is affected by small-scale population changes, is lacking. We devised an approach to fill the gap. First, we applied the travel cost method to obtain the value of a wildlife viewing trip. Next, we estimated a value per animal sighting, which we aggregated by the number of visitors who experienced and valued a sighting. Finally, we incorporated the probability of viewing an animal to determine an individual animal’s contribution to sighting value, which varies by species type, visibility, and seasonality. We examined bear viewing in Yellowstone National Park. For grizzly and black bears, respectively, per-sighting values are $16 and $14, aggregate annual sighting values are $6.9 and $9.7 million, and annual per-bear viewing values are $46,000 and $15,000.

Cost-effectiveness of erosion mitigation to meet water clarity targets in the Manawatū-Whanganui Region of New Zealand

Soil erosion is a significant environmental issue worldwide. It affects water quality, biodiversity, and land productivity. New Zealand government agencies and regional councils work to mitigate soil erosion through policies, management programmes, and funding for soil conservation projects. Information about cost-effectiveness is crucial for planning, targeting, and implementing erosion mitigation to achieve improvements in sediment-related water quality. While there is a good understanding of the costs of erosion mitigation measures, there is a dearth of literature on their cost-effectiveness in reducing sediment loads and improving water quality at the catchment level. In this study, we estimate the cost-effectiveness of erosion mitigation measures in meeting visual water clarity targets. The analysis utilizes the spatially explicit SedNetNZ erosion process and sediment budget modelling in the Manawatū-Whanganui Region and region-specific mitigation costs. The erosion mitigation measures considered in the analysis include afforestation, bush retirement, riparian retirement, space-planted trees, and gully tree planting. We modelled two scenarios with on-farm erosion mitigation implemented across the region from 2021 to 2100, resulting in a 48% and 60% reduction of total sediment load. We estimate the marginal costs to achieve the visual national bottom line for water clarity, as assessed by the length of waterways that meet the clarity targets. We also estimate the marginal costs of improving average water clarity, which can be linked with non-market valuation studies when conducting a cost-benefit analysis. We find that gully tree planting and space-planted trees are the most cost-effective mitigation measures and that riparian retirement is the least cost-effective. Moreover, cost-effectiveness is highly dependent on current land use and the biophysical features of the landscape. Our estimates can be used in cost-benefit analysis to plan and prioritize soil erosion mitigation at the catchment and regional levels.

Local insights into industrial nature-based solutions: A comparative study between Northwest China and New Zealand

In the global pursuit of sustainable urban development, this study explored public support for Nature-based Solutions (NbS) in urban industrial development, comparing Northwest China and New Zealand. Lanzhou residents exhibited a willingness to pay (WTP) USD 2.36 million for industrial NbS (INbS) and USD 3.18 million for Neighborhood NbS (NNbS), whereas Aucklanders' WTP was at USD 3.9 million and USD 9.8 million, respectively. The annual nonmarket values for Lanzhou's NNbS and INbS were 30.15 million and 6.65 million USD, and for Auckland, they were 80.14 million and 53.17 million USD, respectively. Aucklanders preferred housing near NbS areas, whereas Lanzhou residents chose locations close to workplaces, with age, gender, education, residency duration, and visit length significantly influencing NbS engagement. Middle-income and homeowner groups, especially middle-aged Lanzhou residents and Auckland bachelor graduates and employees, exhibited higher WTP for INbS and NNbS, with Lanzhou residents preferring WTP for stormwater wetlands of NNbS and Aucklanders favoring WTP for grass swales and permeable surfaces of INbS. Challenges in promoting INbS encompass costs and maintenance. Promoting INbS involves customized strategies for different demographics, legislative collaboration, pilot projects in disadvantaged areas, and aesthetic, demographic-specific designs. The public WTP for INbS underscores a preference for urban designs that are aesthetically pleasing, stress-reducing, and inclusive, reflecting wider societal goals.

Small-scale low-tropic ocean farming and coastal rural landscapes: Why the logistics of seaweed matter? Insights from Ireland for collaborative planning

Kelps are part of large brown macroalgae species with a fundamental role in temperate to subpolar coastal marine ecosystems and their cultivation has been expanding as part of several efforts and countries' policies. This study explores the relevance of post-harvesting logistics planning involving marine operations of emerging seaweed-based supply chains including kelp species. In the Irish context, we explore the potential of collaboration among low-tropic ocean farming sectors regarding shared space and infrastructure in rural and remote landscapes. Based on empirical data and a novel methodological approach, a multi-method analysis was performed involving geographic information systems, mathematical modelling and qualitative content analysis. The results indicate large potential production and collaboration capacity if current licensed areas and existing infrastructure were integrated with kelp cultivation for further processing and distribution in 40 local supply hubs and 14 optimal locations for shared processing facilities. Moreover, the different transportation scenarios considered indicate that costs and greenhouse gas emissions could be minimised by reducing moisture content locally and with increased payload. Further linkages reveal uncertainties in the uses of alternative methods of preservation such as ensiling and a lack of attention to non-market values. For future valorisation in diverse commercial and non-commercial applications, seaweed farming and collaborative processing opportunities still need to be incorporated into societal discourses and futures envisioned by rural coastal communities, including the engagement of young generations in such transformation pathways.

Who should benefit from environmental policies? Social preferences and nonmarket values for the distribution of environmental improvements

AbstractThe literature is replete with valuations of the costs and benefits of environmental change, yet the issue of where those impacts fall across society is rarely considered. This is a significant knowledge gap given clear evidence of social preferences regarding distributional effects reflected in both policy and protest. As an initial contribution, we examine preferences regarding projects designed to more than offset the biodiversity impacts of housing developments in England, as mandated under the UK's Net Gain legislation. Employing a nationally representative sample, a Discrete Choice Experiment values options for alternative characteristics and location of both development and offset sites, including their situation relative to both the respondent's home and neighborhoods of different socio‐economic status. This defines sets of “winners” and “losers” varying across wealth levels. Results show that respondents did not necessarily prefer that the communities losing biodiversity due to development must also be the beneficiaries of the biodiversity enhancement under Net Gain rules. This is particularly the case where the communities losing biodiversity are located far from the respondent and are high wealth. Instead, our findings show that respondents are willing to pay more for Net Gain policies delivering biodiversity improvements to low or average (rather than high) wealth communities. These results highlight the importance of considering distributional concerns when measuring the welfare impacts of environmental policies and the potential role of such policies as redistributive tools to reduce social inequalities.

Results of Two Non-Market Valuation Methods Used to Estimate Recreational Fishing in the Lakes Prespa Watershed

Using both the travel cost and contingent valuation methods, a case study of Lakes Prespa was utilized to assess the demand functions for carp and non-carp angling separately. An on-site survey questionnaire was used to collect the data, which was completed in 2019. The results showed that when travel costs and bid amounts are higher or when anglers are traveling in larger groups, they travel less frequently. On the other hand, the number of trips is positively correlated with income, angling experience, the use of a motorized boat, the number of trips taken to other sites, and retirement. The mean daily consumer surplus values for carp and non-carp anglers were calculated to be €7.24 and €4.33, respectively, using the trip cost method, and €7.83 and €4.61 using the contingent valuation method. Regardless of the method of valuation utilized, carp anglers' consumer surplus was more than 1.7 times that of non-carp anglers, demonstrating that ordering in fish species values is robust to valuation methods. Furthermore, the convergent validity of the two techniques was identified. The results will help fisheries managers make more successful and resource-efficient fishing decisions, as well as policymakers justify funding initiatives targeted at managing and protecting this resource.

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

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

Leveraging big data for outdoor recreation management: A case study from the York river in Virginia

Outdoor recreation is important for improving quality of life, well-being, and local economies, but quantifying its value without direct monetary transactions can be challenging. This study explores combining non-market valuation techniques with emerging big data sources to estimate the value of recreation for the York River and surrounding parks in Virginia. By applying the travel cost method to anonymous human mobility data, we gain deeper insights into the significance of recreational experiences for visitors and the local economy. Results of a zero-inflated Negative Binomial model show a mean consumer surplus value of $26.91 per trip, totaling $15.5 million across nearly 600,000 trips observed in 2022. Further, weekends, holidays, and the summer and fall months are found to be peak visitation times, whereas those with young children and who are Hispanic or over 64 years old are less likely to visit. These findings shed light on various factors influencing visitation patterns and recreation values, including temporal effects and socio-demographics, revealing disparities that warrant targeted efforts for inclusivity and accessibility. Policymakers can use these insights to make informed and sustainable choices in outdoor recreation management, fostering the preservation of natural resources for the benefit of both visitors and the environment.

무형 문화자원의 관광 정책적 활용을 위한 경제적 가치평가

Purpose - This study aims to develop a valid and appropriate method for measuring the economic value of intangible cultural resources.
 Design/methodology/approach - Building upon the concepts explored in many studies on the total value regulation of public goods or environmental goods, which are non-market value commodities, with a focus on the intangible cultural property Arirang, this study aims to formulate a new economic value concept for cultural resources that contributes to the overall economic total value, including non-use value. Based on this foundation, the study aim to identify and apply the most efficient model(CVM) among economic value measurement methods, as suggested by Tietenberg (2003).
 Findings - This involves estimating economic value through consumer behavior, encompassing the use or experience of cultural resources, as well as utilizing statements to estimate economic methods through consumer surveys. Only by presenting individual resource economic values of cultural resources in objective figures can a foundation be established for creating budgets and organizational structures to promote projects and policies.
 Research implications or Originality - Appropriate decisions can then be made by comparing these values with the expected costs in the management and planning process.

Application of Contingent Valuation Method on Economic Valuation of Coral Reef Ecosystems in Gili Gede Marine Area, West Nusa Tenggara

The most obvious way to measure non-market value is to question individuals directly about their willingness to pay for a good or service. This study evaluates the economic value of coral reef ecosystems using the contingent valuation method (CVM) technique by measuring the willingness to pay the community. Furthermore, this study aims to analyze the factors that influence the willingness to pay (WTP) and the amount of the value of the community's willingness to pay (WTP) for the conservation of coral reef ecosystems in Gili Gede waters. Sample determination in this study used purposive sampling techniques with interview structured data collection techniques guided by questionnaires. Data analysis used logistic regression for factors affecting WTP and multiple linear regression for factors affecting WTP values. The results of this study found that the average WTP value of the community was Rp. 7,257 / person in the mandatory scenario and Rp. 4,685 / person in the voluntary scenario. Factors that affect the willingness to pay the community for coral reef conservation fees in the Gili Gede fishing area are education and concern for the environment. For factors that affect the amount of the value of willingness to pay the community for coral reef conservation fees in the Gili Gede fishing area in the mandatory scenario are education, domicile and concern for the environment and in the voluntary scenario are gender, education, domicile and concern for the environment