Willingness To Accept Research Articles

Modified Contingent Valuation Method for Agricultural Wastes between the Areas of Peloponnese and Thessaly in Greece

This paper focuses on investigating the tendency of farmers in the greater area of Peloponnese as well as those on the greater area of Thessaly to participate in a program of environmental agricultural waste management. The aim of the present study is to investigate the level of amount WTA (Willingness to Accept) against which the farmers would be willing to allow anyone to gather and carry away the leftovers of their farming exploitation. To serve the above goals, the agricultural leftovers are evaluated by the CVM (Contingent Valuation Method) as an environmental non-market economic commodity. The specimen response on utilization of the rejected biomass was satisfactory, since a good percentage of the interviewees are willing to contribute to this procedure for a minimal of remuneration, although investigations of this type are novel for Greek reality. From this investigation, it is perceived by the society the importance of alternative utilization of the rejected biomass. It is concluded that the minimum amount each interviewee is willing to accept as minimal remuneration and is affected by the way these biomass leftovers are managed, the age of the interviewees and the area in which they live. Those interviewees who use such biomass leftovers in alternative applications wish to be remunerated higher compared to those who relinquish such leftovers. The ordinal logistic model is listed in a broader category of generalized linear models for arrangement data.

Public values on offshore wind farm

The purpose of this study is twofold: (1) to examine households’ willingness to pay for preserving offshore natural beauty from the construction of wind farm as an alternative nonrenewable energy and (2) to analyze the effect on the economic value of a public good resulting from the change in order of information. We employ parametric method with logistic distribution and distribution-free Turnbull estimator to a dichotomous choice contingent valuation survey to elicit economic value of preserving offshore area in Nantucket Sound, Massachusetts. Using Turnbull estimator, the economic values of public good in question, as measured by expected lower bound willingness to pay (WTP) and willingness to accept (WTA), are estimated to be $56.74 and $89.44 per year, respectively. However, the censored logistic regression, which depends on the assumed logistic distribution, produced median WTP and WTA of very small values $0.08 and $0.09. Regarding the survey treatment, we find no significant effect of the order of information on WTP/WTA responses.

Consumer willingness to pay for plastic bags levy and willingness to accept eco-friendly alternatives in Botswana

ABSTRACTPlastic bags, though commonly used for packaging of goods, are highly durable and non-biodegradable. Plastic bag litter serves as a negative environmental externality detrimental to animal health and natural beauty of the environment. In an effort to curtail the excessive use of plastic bags in Botswana, the government introduced a plastic levy targeted at consumers at retail points. This study uses primary data collected from 367 respondents randomly selected from six geospatially and purposively selected shopping malls to determine the consumers’ willingness to pay (WTP) for continued plastic bag usage and their willingness to accept (WTA) to shift to eco-friendly alternatives. The results of the study revealed that open dumping and burning of plastic litter are more common in Maun than in Gaborone. It also showed that there is a significant relationship between the level of education and WTP. Further, there is a significant variation in income and education in respect to environmental awareness...

Valoración de la oferta de bienes públicos por parte de los sistemas agrarios: el caso del olivar de montaña en Andalucía

We carried out an economic valuation of public goods (PGs) provided by Andalusian mountainous olive groves using choice experiments. The results show varying farmers’ behaviour depending on the level of stringency of the requirements included in agri-environmental schemes, with willingness to accept (WTA) lower than € 80/ha for less stringent scenarios (such as those associated with integrate production) and WTA higher than € 300/ha for the most stringent scenario (designed to maximise the provision of environmental PGs). The study also indicates that the inclusion of a results-based bonus has a low relevance

Valuing health risk in agriculture: a choice experiment approach to pesticide use in China.

This paper presents a choice experiment approach to investigate farmers' valuations for health risk changes associated with pesticide use in Anqiu County, China. An empirical comparison on the disparity between farmers' willingness to pay (WTP) for a health risk reduction and willingness to accept (WTA) for the same risk increase is also conducted. Respondents were randomly assigned into the WTP group or the WTA group. Four attributes (health consequence, baseline risk, risk change size, and price) were identified and included. The results show that cancer consequence due to pesticide use decreases the utility of the farmer. A higher baseline risk has a higher WTP to reduce the risk and a higher probability of receiving compensation. If the health risk change size is bigger, it will result in a higher WTP and higher compensation. Household income, education, and age have significant and positive impacts on farmers' WTP. Farmers who are more educated or female are more likely to accept the compensation scheme if health risks increase. The marginal WTA for the same risk change is about two times higher than the marginal WTP. The findings of this study can contribute to the literature comparing people's WTP and WTA in a discrete choice experiment on valuing health risk changes associated with pesticide use.

Empirical evaluation of third-generation prospect theory

Third generation prospect theory (Schmidt et al. J Risk Uncertain 36:203–223, 2008) is a theory of choices and of judgments of highest buying and lowest selling prices of risky prospects, i.e., of willingness to pay (WTP) and willingness to accept (WTA). The gap between WTP and WTA is sometimes called the “endowment effect” and was previously called the “point of view” effect. Third generation prospect theory (TGPT) combines cumulative prospect theory for risky prospects with the theory that judged values are based on the integration of price paid or price received with the consequences of gambles. In TGPT, the discrepancy between WTP and WTA is due to loss aversion-losses have greater absolute utility than gains of the same value. TGPT was developed independently of similar developments by Birnbaum and Zimmermann (Organ Behav Hum Decis Process 74(2):145–187, 1998) and Luce (Utility of gains and losses: measurement-theoretical and experimental approaches. Erlbaum, Mahwah, 2000). This paper reviews theoretical and empirical findings, to show that TGPT fails as a descriptive model of both choices and judgments. Evidence refutes three implications of TGPT, but they are consistent with configural weight models (Birnbaum and Stegner, J Personal Soc Psychol 37:48–74, 1979) in which loss aversion is not needed to describe the results. In the configural weight models, buyers place greater weight on lower consequences, attributes or estimates of value compared to sellers, who place greater configural weight on higher aspects of an object or prospect.

Valuing security of supply: does experience matter?

PurposeThe paper aims to analyse whether experiencing a supply interruption affects the valuation of security of electricity supply.Design/methodology/approachA blackout in Munich, Germany, in November 2012 is utilised as a natural experiment by conducting a contingent valuation survey around two months after the event. The characteristics of the supply interruption allow for distinguishing between households that were affected by the blackout and those who were not. This provides the opportunity to compare the willingness to pay (WTP) for avoiding and the willingness to accept (WTA) for enduring a supply interruption between affected and non-affected Munich households.FindingsThe results show that households who were affected by the outage had a higher WTP for avoiding a hypothetical supply interruption. Although affected households also had a higher WTA for enduring an outage, the WTA-differences between the two groups are not statistically significant. Furthermore, the results indicate that experience with power outages can increase the perceived relevance of the policy objective “security” at the expense of the objective “environmental sustainability”.Originality/valueThe paper contributes to the literature in three general respects. First, the assessment of the relationship between outage experience and the valuation of supply security is based on a natural experiment which avoids most of the shortcomings of previous studies. Second, the paper uses both the WTP and the WTA measure to approximate the valuation of supply security and discusses the differences in their outcomes. Third, these monetary valuations are complemented and compared with general attitudes towards a reliable electricity system.

MP77-18 WHAT FALSE NEGATIVE RATE OF NON-INVASIVE TESTING ARE ACTIVE SURVEILLANCE PATIENTS AND URO-ONCOLOGISTS WILLING TO ACCEPT IN ORDER TO AVOID PROSTATE BIOPSY?

You have accessJournal of UrologyProstate Cancer: Detection & Screening VII1 Apr 2017MP77-18 WHAT FALSE NEGATIVE RATE OF NON-INVASIVE TESTING ARE ACTIVE SURVEILLANCE PATIENTS AND URO-ONCOLOGISTS WILLING TO ACCEPT IN ORDER TO AVOID PROSTATE BIOPSY? Rashid Sayyid, Dharmendra Dingar, Katherine Fleshner, Taylor Thorburn, Joshua Diamond, Erik Yao, Karen Hersey, Karen Chadwick, Nathan Perlis, Laurence Klotz, Antonio Finelli, Alexandre Zlotta, Robert Hamilton, Girish Kulkarni, and Neil Fleshner Rashid SayyidRashid Sayyid More articles by this author , Dharmendra DingarDharmendra Dingar More articles by this author , Katherine FleshnerKatherine Fleshner More articles by this author , Taylor ThorburnTaylor Thorburn More articles by this author , Joshua DiamondJoshua Diamond More articles by this author , Erik YaoErik Yao More articles by this author , Karen HerseyKaren Hersey More articles by this author , Karen ChadwickKaren Chadwick More articles by this author , Nathan PerlisNathan Perlis More articles by this author , Laurence KlotzLaurence Klotz More articles by this author , Antonio FinelliAntonio Finelli More articles by this author , Alexandre ZlottaAlexandre Zlotta More articles by this author , Robert HamiltonRobert Hamilton More articles by this author , Girish KulkarniGirish Kulkarni More articles by this author , and Neil FleshnerNeil Fleshner More articles by this author View All Author Informationhttps://doi.org/10.1016/j.juro.2017.02.2126AboutPDF ToolsAdd to favoritesDownload CitationsTrack CitationsPermissionsReprints ShareFacebookTwitterLinked InEmail INTRODUCTION AND OBJECTIVES Repeat prostate biopsies in active surveillance patients are associated with significant complications. Novel imaging and blood/urine based non-invasive tests are being developed to better predict disease grade and volume progression. We conducted a theoretical study to determine what test performance characteristics and costs would a non-invasive test(s) require in order for patients and their physicians to comfortably avoid biopsy. METHODS Surveys were administered to two populations to determine an acceptable false-negative rate and cost for such test(s). AS patients were recruited at time of visit to the prostate cancer clinic at Princess Margaret Cancer Centre, beginning August 2015 for a period of four months. Responses from urologic oncologists worldwide were obtained in March 2016 by circulating an online survey via the Society of Urologic Oncology. Participants were questioned about their demographics and other characteristics that might influence chosen error rates and cost. Differences between patient and physician choices were tested using the Chi-square test. RESULTS 136 patients and 670 physicians were surveyed, with 130 (96%) and 104 (16%) responses obtained, respectively. 90.6% of patients were comfortable with a non-invasive test(s) in place of biopsy, with 64.8% accepting a false-negative rate of 5% or worse. 25.8% of patients requested a FN rate of 1% or lower. 93.3% of physicians were comfortable with a non-invasive test, with 77.9% accepting a rate of 5% or worse. 15.4% of physicians requested a FN rate of 1% or lower. 75% of patients and 77% of physicians felt that a cost of less than $1,000, per administration, would be reasonable. No significant differences existed between patient and physicians choices for FN rate or costs (p>0.05). CONCLUSIONS Most patients/physicians are comfortable with a non-invasive test(s). Although a 5% error rate seems acceptable to many, a substantial subset feels that 99% or higher negative predictive value is required. Thus, a personalized approach with shared-decision making between patients and physicians is essential to optimize patient care in such situations. © 2017FiguresReferencesRelatedDetails Volume 197Issue 4SApril 2017Page: e1028-e1029 Advertisement Copyright & Permissions© 2017MetricsAuthor Information Rashid Sayyid More articles by this author Dharmendra Dingar More articles by this author Katherine Fleshner More articles by this author Taylor Thorburn More articles by this author Joshua Diamond More articles by this author Erik Yao More articles by this author Karen Hersey More articles by this author Karen Chadwick More articles by this author Nathan Perlis More articles by this author Laurence Klotz More articles by this author Antonio Finelli More articles by this author Alexandre Zlotta More articles by this author Robert Hamilton More articles by this author Girish Kulkarni More articles by this author Neil Fleshner More articles by this author Expand All Advertisement Advertisement PDF downloadLoading ...

The endowment effect in games

In a laboratory experiment we study whether the endowment effect exists in a social and strategic context. We employ a within-subjects design whereby participants are asked for their Willingness-to-Accept (WTA) or Willingness-to-Pay (WTP) to play a series of 2 × 2 games. In the second part of the experiment, we study the endowment effect in lotteries with the same payoffs as the games in the first part. Our findings provide robust evidence for the endowment effect both in games and in lotteries, with the size of the effect actually being larger in games than in lotteries. We also find that the endowment effect can partly be attributed to optimism.

Measuring Stigma: The Behavioral Implications of Disgust

Stigmatization of products and technologies can lead to large monetary losses even when there are no associative risks. This paper reports on experiments that provide insight into the behavioral responses of disgust from an economic perspective. We use a dead sterilized cockroach to ‘contaminate’ drinking water and generate willingness-to-pay (WTP) and willingness-to-accept (WTA) measures of participants’ reactions. These results are contrary to previous results from research not involving financial incentives, as most participants’ WTP and WTA values are near zero for drinking cockroach contaminated water. Additionally, filtration of cockroach water leads participants to become significantly more likely to request compensation compared to spring water, but it does not result in requesting significantly more money to drink it. Finally, WTP and WTA differences can be explained by participants’ decision on whether or not to request compensation and not by the amount of compensation.

Assessment of transport performance index for urban transport development strategies — Incorporating residents' preferences

The performance of urban transport depends on a variety of factors related to metropolitan structure; in particular, the patterns of commuting, roads and public transport (PT) systems. To evaluate urban transport planning efforts, there is a need for a metric expressing the aggregate performance of the city's transport systems which should relate to residents' preferences. The existing metrics have typically focused on a measure to express the proximity of job locations to residences. A Transport Performance Index (TPI) is proposed in which the total cost of transportation system (operational and environmental costs) is divided by willingness to pay (WTP) for transport plus the willingness to accept (WTA) the environmental effects on residents. Transport operational as well as the environmental costs are derived from a simulation of all transport systems, to particular designs of spatial development. Willingness to pay for transport and willingness to accept the environmental effects are derived from surveys among residents. Simulations were modelled of Surabaya's spatial structure and public transport expansion. The results indicate that the current TPI is high, which will double by 2030. With a hypothetical polycentric city structure and adjusted job housing balance, a lower index occurs because of the improvements in urban transport performance. A low index means that the residents obtain much benefit from the alternative proposed. This illustrates the importance of residents' preferences in urban spatial planning in order to achieve efficient urban transport. Applying the index suggests that city authorities should provide fair and equitable public transport systems for suburban residents in the effort to control the phenomenon of urban sprawl. This index is certainly a good tool and prospective benchmark for measuring sustainability in relation to urban development.

Willingness-to-Pay and Willingness-to-Accept Are Probably Less Correlated Than You Think

Willingness to pay (WTP) and willingness to accept (WTA) a monetary amount for a lottery should be closely related. In data from an incentivized survey of a representative sample of 3,000 U.S. adults, we find that WTA and WTP for a lottery are, at best, weakly correlated. Across all respondents, the correlation is slightly negative. For the subgroups that we examine, the correlation is almost always small, typically statistically insignificant, and often negative. The exception is respondents who score highly on a within-study IQ test, where the correlation is around 0.2. A meta-study of similar lab experiments with university students also shows a correlation of around 0.15-0.2. While poorly related to each other, our measures of WTA and WTP are strongly related to different measures of risk aversion, and relatively stable across time. These various patterns allow us to show that this lack of relationship between WTA and WTP is compatible with existing theories, such as Prospect Theory and Stochastic Reference Dependence, only under very specific, and unlikely, correlational structures between parameters. We suggest a simpler formalization.

基于选择实验的三江平原湿地生态系统服务功能价值评价及偏好异质性研究

PDF HTML阅读 XML下载 导出引用 引用提醒 基于选择实验的三江平原湿地生态系统服务功能价值评价及偏好异质性研究 DOI: 10.5846/stxb201604120669 作者: 作者单位: 东北农业大学 管理科学与工程系,东北农业大学 管理科学与工程系,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: 国家自然科学基金资助项目（71171044） Evaluation of preference heterogeneity of ecosystem services in the Sanjiang Plain Wetlands based on choice experiments Author: Affiliation: Department of Management Science and Engineering,Northeast Agricultural University,Department of Management Science and Engineering,Northeast Agricultural University,Northeast Agricultural University,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:维持与保护生态系统服务功能是实现可持续发展的基础，定量评价湿地生态系统服务功能的经济价值已成为当前生态学领域研究的前沿课题。以三江平原湿地为研究对象，应用选择实验法，选取湿地面积、生物多样性、水源涵养和自然景观等4项湿地属性，运用随机参数Logit模型（RPL）对其进行货币化评价，并结合潜在分类模型（LCM）证实并解释公众对湿地生态系统服务功能的偏好异质性。研究结果显示：湿地生态系统服务功能的价值依次为水源涵养 > 湿地面积 > 生物多样性 > 自然景观。对于维持当前各项湿地生态系统服务功能的总价值为14.61亿元/a，改善价值为98.58亿元/a。此外，研究发现受访者可分为资源偏好型、景观偏好型和价格敏感型等3个潜在类别，不同类型的群体对湿地生态系统服务功能存在不同偏好；女性和更高学历的受访者更偏好于资源保护，高收入和到景区旅游次数多的受访者更偏好于景观保护，而教育和收入水平越低的受访者更倾向于选择价格较低的湿地管理方案。研究有助于湿地可持续管理政策的优化设计，为相关环境政策的制定提供理论依据。 Abstract:Maintenance and protection of ecosystem services are the basis for achieving sustainable development. Quantitative assessment of the economic value of wetland ecosystem services has become one of leading topics in the field of ecology. Choice experiments (CE) comprise an important non-market resource value evaluation technique, which are carried out by eliciting responses from individuals in hypothetical markets. CEs also enable researchers to measure a respondent's Willingness to Accept (WTA) compensation or Willingness to Pay (WTP) a premium for different characteristics of one product, and to analyze the relative value of a combination of different attributes from various alternatives by using econometric models. As CEs are most likely to reveal respondents' preferences for goods or services, such experiments have become a widespread means of ecological valuation. The purpose of this paper is to assist policy makers in formulating efficient and sustainable wetland management policies by providing the results of a valuation study on the Sanjiang Plain Wetlands. A CE was employed to estimate the values that changes to ecosystem service functions of the Sanjiang Plain Wetlands could provide to the public. We estimated partial values for wetland conservation, with a focus on wetland size, biodiversity, water conservation, and natural landscapes, among a myriad of wetland ecosystem services. A random parameter logit (RPL) model was employed to evaluate the ecosystem services in monetary units, and a latent class model (LCM) was employed to confirm and account for heterogeneity in the preferences of the public for various wetland ecosystem service functions. Compensating surplus welfare measures were also estimated for management scenarios representing changes in the quality and quantity of wetland ecosystem services. The results reveal that:(1) the relative wetland ecosystem valuation results of each wetland attribute are as follows:water conservation > wetland area > biodiversity > natural landscape. The relative contribution degree of each wetland attribute to the environment follows the same pattern.(2) The total WTP is RMB 1.461 billion per year in order to maintain the current wetland ecosystem service functions of the Sanjiang Plain Wetlands, and RMB 9.858 billion per year to improve them. (3) There is considerable preference heterogeneity across the public, which derives significant positive values from sustainable wetland management. We were able to divide respondents into three categories:those who preferred protecting resources, those who preferred protecting the landscape, and those who were price-sensitive. Female respondents and highly educated respondents preferred resource conservation, while respondents with higher incomes and those who had travelled more number of times to the Sanjiang Plain Wetlands preferred landscape protection. However, respondents with lower education and income levels were more sensitive to costs, and preferred to choose alternatives with lower cost. These results can aid in the design of socially optimal policies for sustainable management of wetlands and provide a theoretical basis for the development of environment-related policies. 参考文献 相似文献 引证文献

Theory of Willingness to Sell to Valuate Ecosystem Services in the Contingent Valuation Method

Willingness to Pay (WTP) and Willingness to Accept (WTA) is the mainstream of the contingent valuation method (CVM) and especially the willingness to pay techniques is widely used in valuating public goods and ecosystem services in many areas in the world. The main technique of WTP in CVM is to achieve the maximum value that public would like to pay for some ecosystem services; unfortunately, it is always accompanied by a psychological phenomenon as free rider, since actually, everyone can enjoy the public goods equally no matter how much they paid, which is also the definition and feature of the public goods. While, although recent advances have considerably reduced the biases and shortcomings of CVM such as embedding effect and hypothetical bias. Researchers still faced with a need for a new method, which is fundamentally interfered with less psychological factors. This paper presents a first attempt to build the theory of Willingness to Sell (WTS) to quantify the economic value of the ecosystem services on the basis of the combination of existing environmental science and economics. WTS is a method to achieve a reasonable equilibrium price through the public judgment on the value of public goods or ecosystem services rather than the production costs of the supplier. The theoretical construction, mathematical modeling, implementation of the process, and survey method and question designs of WTS have been discussed and presented in this research. We believe that a more objective and reliable economic value of ecosystem service could be drawn through the combination of the new method and existing WTP and WTA skills, and the validity of CVM method research will also be greatly improved.

Potensi Pembayaran Jasa Lingkungan Hutan Mangrove di Kecamatan Jailolo Kabupaten Halmahera Barat

Payment for environmental services (PES) to mangrove forest is judged appropriate for applied in Jailolo Sub-district of West Halmahera District as a protection of mangrove ecosystems. This is due to the high utilization of mangrove environment services. If not managed properly can potentially threaten the preservation of mangrove forests. Benefits that have been perceived by the public such as a water source, pond, travel, as well as the protection of coastal areas. These benefits must be preserved for the future availability of environmental services namely through the payment of the services already provided the commonly named as payment for environmental services (PES). PES is also very supported by West Halmahera District Regulation No. 4 of 2012 year and constitution No. 32 of 2009 year about the protection and environmental management. Basically, PES is a scheme that aims to restore and protect the availability of goods and environmental services sustainable. Therefore, PES initiation for mangrove forest economy preservation in Jailolo Sub-district needs to be studied. This research aims to: 1) Identify environmental services of mangrove forest ecosystems that are potential for PES; 2) Examines the perceptions of the public service providers (providers) towards the implementation of the plan; and 3) How much willingness to accept (WTA) community as a providers of environmental services (providers) if PES is applied. The research results showed that the service potentially initiated PES are sea-water intrusion regulating service and the cultural service of mangrove tourism. For perception and public participation, environmental service providers about the mangrove environment services were judged to be sufficient for determining PES plan assignment, where communities want to participate if the maintenance costs were IDR3.350,00/trees/year

Effects of payment vehicle non-attendance in choice experiments on value estimates and the WTA–WTP disparity

ABSTRACTIn this paper, we argue that value estimates obtained from choice experiments suffer from hypothetical bias, caused by part of the respondents ignoring the payment vehicle in making their choices. We show that this particular form of non-attendance can be substantial, pushes down the estimated payment vehicle parameter, and causes an upward bias in value estimates. Moreover, payment vehicle non-attendance affects willingness to accept (WTA) more than it does willingness to pay (WTP). As a consequence, the WTA–WTP disparity decreases when non-attendance is accounted for, with disparities decreasing by at least 50%. The patterns in findings are by and large robust to exclusion of systematic status quo choices and to alternative model specifications.

The effect of giving respondents time to think in a choice experiment: a conditional cash transfer programme in South Africa

AbstractWe conducted a choice experiment (CE) to estimate willingness to accept (WTA) values for a planned conditional cash transfer (CCT) programme designed to increase toilet use in South Africa. The payment is made conditional on using a toilet and bringing urine to a central collection point. In a split-sample approach, a segment of respondents were given time to think (TTT) (24 hours) about their responses, while the remaining respondents had to answer immediately. We found significant differences in the choice behaviour between the subsamples. To validate the stated preferences with actual behaviour, a CCT programme was implemented afterwards. The stated WTA estimates were far below those revealed by actual behaviour for both subsamples. Contrary to our expectations, the TTT group had underestimated their actual WTA values by an even larger margin. The preferences for various attributes were nevertheless useful in informing the design of the real intervention.

Willingness to Pay and Accept for Hosting Olympic Games in Germany

This empirical study investigates whether and how much individuals are willing to pay for hosting Olympic Games in Germany. Moreover, it is examined for the first time what individuals are willing to accept to host Olympic Games in their own country if they do not like that. Furthermore, this study identifies determinants that influence the willingness to pay (WTP) including the willingness to accept (WTA) for hosting Olympic Games in Germany. WTP minus WTA is positively driven by the felt national importance of the German Olympic team doing well. Socio-economic factors such as gender, age and income influence this measure in significant ways, too. The extrapolation of the individual WTP and WTA shows that, in the net aggregate, the German population is willing to pay €3.57 billion for hosting the Olympic Games in Germany.

Payments for Ecosystem Services and Wealth Distribution

Payment for ecosystem services (PES) has come to be regarded as a promising market-based policy instrument to internalize environmental externalities. The potential of PES is linked to the relationship between the willingness to pay (WTP) of ecosystem service buyers and the willingness to accept (WTA) of ecosystem service providers. This study uses an economic model to analyze factors that influence aggregate WTP and WTA in a PES scheme. We demonstrate that wealth disparity between ecosystem services buyers and providers can increase transactions. Furthermore, when wealth disparity exists between the buyers and sellers, the wealthier population would contribute more into the program and the poorer population would benefit more from it. Under these conditions, PES can be socially progressive and mitigate preexisting economic inequality. In this sense, the economic model provides justification for integration of PES and poverty alleviation programs. Results of our study indicate that PES is not a universally applicable conservation tool, and there is a need for a more targeted approach to the design and application of PES.

A choice experiment on the willingness of households to accept power outages

Outage cost estimation is particularly important for investment decisions related to the security and reliability of electricity supply. The heterogeneity in approaches and findings calls for more research on this topic. This paper presents a model for evaluating household Willingness to Accept (WTA) power outages in relation to expected compensation for an electricity interruption. Using a choice experiment, applied to a test sample of Italian households, we evaluate the effect of different interruption scenarios based on duration and proposed discount. The results postulate an average value of 25.37 euro/kWh of lost load for a typical Italian household. Based on survey data, the value of lost load is correlated to a set of household characteristics as well as to different durations of the hypothetical interruption.