Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece

The aim of this study was to evaluate environmental benefits resulting from the construction of a Sewage Treatment Plant (STP) in Mitilini, Greece. The main benefits identified were the improvement of the coastal water quality and subsequent impacts on citizens’ activities. The valuation was conducted using the Contingent Valuation Method (CVM) through the elicitation of individuals’ willingness to pay (WTP). Due to the significant amount of zero and protest responses, different measurements of mean WTP were calculated and the need for further research on social factors which influence individuals’ valuation is emphasized.     

An exploration of older Hong Kong residents’ willingness to make copayments toward vouchers for community care

Because of its rapidly aging population, Hong Kong faces great challenges in the provision and financing of long-term care (LTC) and needs to explore sustainable funding mechanisms. However, there is a paucity of research on older people’s willingness to pay (WTP) for LTC services in Hong Kong. This study utilizes data collected in Hong Kong in 2011 (N = 536) to investigate older people’s receptivity to this financing mode by assessing their co-payments for a community care service voucher scheme and then testing how potential factors affect respondents’ amount of co-payment. Results show that respondents’ WTP was positively associated with family financial support, financial condition, and positive attitudes toward this novel policy and negatively associated with family caregiving support. Direct and moderating effects of family financial support on WTP were found. The policy-related implications of LTC financing to improve older people’s acceptance of co-payment mechanisms, financial condition, and shared responsibility of care are discussed.     

Citizens’ Perception of Past Environmental Damage and Liability in Countries with Transition: Evidence from Kemerovo,Russia

This paper analyzes citizens’ perception of past environmental damage and liability through the estimation of willingness to pay for the implementation of decontamination and land rehabilitation of the damaged site. The paper takes the Russian Federation as a case of country in transition and focuses on Kemerovo region as one of the most affected regions in the country. The major analytical tool employed in the study is choice experiment, data for which was collected through a household survey. Primary conclusion of the analysis is that citizens' willingness to financially support the implementation of environmental quality improvement projects is not high though individuals in the studied area express high level of concern over the issue in focus.     

TAXPAYER WILLINGNESS TO PAY FOR HEALTH INSURANCE REFORM: A CONTINGENT VALUATION ANALYSIS

A key criterion for evaluating policies to expand health insurance coverage is weighing the costs of such policies against the willingness of the public to pay for coverage expansions. We use new panel survey data from New York State to estimate residents' willingness to pay (WTP) to expand public insurance coverage. Using a nonparametric double‐bounded contingent valuation (CV) approach, we specifically ask residents about their WTP to reduce the rate of uninsurance in the state. Our results imply an aggregate lower‐bound WTP of over $2,800 per year to cover one person. We also analyze heterogeneity in WTP by sub‐group and changes in individual WTP over time between 2008 and 2010. We find that a large majority of residents are willing to pay additional taxes to reduce the number of uninsured in the state, and that average WTP remained remarkably stable despite the economic downturn and the politically polarized discussions surrounding the Affordable Care Act. Decomposing the changes in individual WTP, we find that economic factors related to the recession, including changes in income and employment status, cannot explain changes in individual WTP, whereas individual changes in political opinions about health insurance reform between 2008 and 2010 are strongly correlated with changes in WTP. (JEL H20, H42, H51, H75, I13)     

Can willingness to pay capture the value of altruism? An exploration of Sen’s notion of commitment

Amartya Sen’s distinction between sympathy and commitment is used to examine the assertion that willingness to pay (WTP) can capture the value of altruism in health care. Willingness to pay values for a vaccination program stated to benefit only one’s self in the first instance and only other people in the second instance were elicited from a small convenience sample. Qualitative methods were then used to explore the meaning of the responses. Commitment was found to be a motivating factor and drove a wedge between willingness to pay and valuation of the program. The consequences of this for health economic research are discussed.     

Understanding the WTA–WTP gap: Attitudes, feelings, uncertainty and personality

We present an experiment designed to study the psychological basis for the willingness to accept (WTA)–willingness to pay (WTP) gap. Specifically, we conduct a standard WTA–WTP economic experiment to replicate the gap and include in it five additional instruments to try to follow the psychological processes producing it. These instruments are designed to measure five psychological constructs we consider especially relevant: (1) attitudes, (2) feelings, (3) familiarity with the target good, (4) risk attitudes, and (5) personality. Our results provide important new insights into the psychological foundations of the WTA–WTP disparity, which can be used to organize some major previous results and cast serious doubts on the claim that the gap might be just a consequence of inappropriate experimental practice.     

RELIABILITY OF STATED PREFERENCES FOR CHOLERA AND TYPHOID VACCINES WITH TIME TO THINK IN HUE,VIETNAM

We examine the effect of giving respondents time to think about their stated choices (SC) in a survey of cholera and typhoid vaccine preferences in Hue, Vietnam. Because neither vaccine is widely available in Vietnam, we used the SC approach (a stated preference technique) and gave half of our respondents overnight to think about their choices to make the hypothetical valuation scenario as similar to a real‐life choice situation as possible. Respondents who were given extra time made fewer choices that violated internal validity tests of utility theory, and had lower average willingness to pay (WTP), confirming a result found in similar studies in the contingent valuation literature. (JEL D12, I18, C25)     

Willingness to Pay, Compensating Variation, and the Cost of Commitment

Hicksian welfare theory is static in nature, but many decisions are made in a dynamic environment. We present a dynamic model of an agent's decision to purchase or sell a good under the realistic conditions of uncertainty, irreversibility, and learning over time. Her willingness to pay (WTP) contains both the intrinsic value of the good as in Hicksian theory plus a commitment cost associated with delaying to obtain more information. The Hicksian equivalence between WTP/Willingness to accept (WTA) and compensating and equivalent variations no longer holds. The WTP and WTA divergence may arise and observed WTP values are not always appropriate for welfare analysis.     

The Economic Value of Career Counseling Services for College Students in South Korea

This study investigated college students’ perception of the monetary value of career counseling services by using the contingent valuation method. The results of a multivariate survival analysis based on interviews with a convenience sample of 291 undergraduate students in South Korea indicate that, on average, participants’ expressed willingness to pay (WTP) for such services ranged from U.S. $10.22 to $10.54 per hour of individual career counseling. Self‐stigma and attitudes toward counseling had positive effects on their WTP, whereas the year in college and social stigma had negative effects. The results provide policy makers with preliminary evidence of the monetary value of career counseling.     

Valuing housework time from willingness to spend time and money for environmental quality improvements

We develop a new approach to assessing the value of home production time based on willingness to spend time and money to obtain environmental improvements. When peoples’ choice is constrained by time as well as money, measures of willingness to pay can be defined with respect to either numeraire. In a model that explicitly allows for multiple shadow values of time, we show that the willingness to pay time and money measures are linked through the value of saving time. With survey information on peoples’ willingness to spend additional time on housework activities, as well as pay money, to obtain environmental quality improvements, joint estimation within a utility-consistent structure produces estimates of both willingness to pay and the value of saving housework time. From the value of saving housework time, the marginal value of housework time can be readily identified. When applied to Korean households’ valuation of water quality improvements in the Man Kyoung River, we find that the value of housework time is 70–80% of the market wage.

The influence of retail outlet and FSMA information on consumer perceptions of and willingness to pay for organic grape tomatoes

The primary objective of this research was to determine the effect of retail outlet (supercenter, supermarket, farmers market, fresh format) on consumer perceptions of and willingness to pay (WTP) for organic grape tomatoes. Also examined was whether information on the proposed Food Safety Modernization Act (FSMA) regulations, with and without information on tomato safety, altered these aspects across retail outlets. Field experiments were conducted with 207 participants in two U.S. states in fall 2014 to address these questions. Consumers’ perceptions and WTP varied significantly by retail outlet, with farmers markets and fresh format stores receiving the most favorable evaluations and supercenters the least. With FSMA information, safety perceptions fell significantly for the favored outlets and mostly increased for supercenters. Participants’ felt no producers should be exempt from the FSMA and viewed farmers markets vendors as most likely to be exempt. Unexpectedly though, these changes seldom translated into changes in WTP. Further, in treatments with added tomato safety information, supercenters saw no safety rating benefit. Overall, it was clear the organic label was not viewed equally across different retail outlets.     

An introduction to My Environmental Education Evaluation Resource Assistant (MEERA), a web-based resource for self-directed learning about environmental education program evaluation

My Environmental Education Evaluation Resource Assistant or “MEERA” is a web-site designed to support environmental educators’ program evaluation activities. MEERA has several characteristics that set it apart from other self-directed learning evaluation resources. Readers are encouraged to explore the site and to reflect on the role that self-directed learning resources can play in program evaluation and how those resources could be better designed.     

Demand for decision autonomy and the desire to avoid responsibility in risky environments: Experimental evidence

This paper experimentally studies individuals’ willingness to pay for the authority to make risky decisions for themselves, and the willingness to take responsibility for others, as primary determinants of leadership willingness. We consider a setup involving a pair of individuals, where one individual is designated to make both parties’ decisions by default. Depending on treatment, either party can express a willingness to pay to change this situation. If one’s willingness to pay to make her own decision herself is positive (negative), we interpret it as a demand for autonomy (a desire to delegate). On the flip side, if one’s willingness to pay to avoid making a decision on behalf of another person is positive (negative), we interpret it as a desire to avoid responsibility (a demand for authority). We find that on average, individuals are willing to pay positive amounts of money to make their decisions themselves, and incur positive but smaller opportunity costs for the right to make decisions for others. Certain individual and contextual characteristics emerge as important predictors. Notably, (1) men are more likely to demand both autonomy and authority at the same time, (2) individuals with other regarding preferences are more likely to pay to avoid taking responsibility for others’ decisions when the probability of loss is high. Exploring differences between individuals’ own decisions and the decisions they make on behalf of others, we find that subjects with other-regarding preferences tend to “cautious-shift” when making decisions on behalf of others. Also, we find that individuals who would like to avoid responsibility also tend to “shift” their decisions when put in a decision-making role. The results have implications for the allocation of decision-making authority in pairs and leadership.     

Theoretical and spatial limits to the value of rural environmental benefits: Evidence from the forestry sector

The valuation of environmental benefits has been well researched in the forestry sector. This is not generally the case in the agriculture sector although schemes to compensate farmers for provision of officially defined environmental benefits are already in place throughout the European Union. This paper draws on empirical findings from forestry and deductions from economic theory to challenge the notion of the universality of such benefits. Empirical findings from forestry suggest recreational use value is location specific rather than widely spread. Household utility theory predicts zero willingness to pay to maintain the status quo level of a previously unpaid for environmental benefit (when provision is not perceived as under risk) but a positive willingness to pay for an increase. Thus, non use values cannot be attributed to the major part of existing commercial forestry area but to spatially restricted schemes such as additional afforestation or preservation of ancient natural woodlands.     

Dispositions to Act in Favor of the Environment: Fatalism and Readiness to Make Sacrifices in a Cross‐National Perspective1

This article hypothesizes that individuals’ environmental attitudes depend not only on their knowledge, interests, emotions, and values but also on the social context in which they live. We test this hypothesis by analyzing the 2000/01 ISSP‐II Survey on Environmental Attitudes; the data include respondents from 23 countries. Our findings show that individual characteristics influence both “pessimistic environmental orientations” and “the willingness to act in favor of the environment.” As for social context, the level of development and affluence, the degree of political centralization, the presence of green movements and parties, and the degree of objective pollution in a country are all important. However, their influences on fatalism and willingness vary.     

A DYNAMIC EXPLANATION OF THE WILLINGNESS TO PAY AND WILLINGNESS TO ACCEPT DISPARITY

Recent evidence from laboratory experiments suggests that important disparities exist between willingness to pay (WTP) and compensation demanded for the same good. Because a fundamental postulate in neoclassical theory is that with small income effects and many available substitutes, the willingness to accept (WTA) and WTP measures of value for a commodity should be roughly equivalent, this finding has vast implications in both a positive and normative sense. This study advances, and experimentally tests, a new explanation of the WTP/WTA disparity—a dynamic theory based on the presence of commitment costs. Although to date neoclassical models have not explained the observed data patterns well, we find that the commitment cost theory combined with a simple behavioral anomaly is able to lend insights into the causes and severity of the WTA/WTP disparity. Furthermore, we find that market experience attenuates the behavioral anomaly, consistent with the notion that no value disparity exists for agents with sufficient market experience. (JEL Q21, Q26)     

Cohabitation and commitment: partnership plans of young men and women

Popular commentators on marriage and the family often interpret the increase in heterosexual couples living together without marrying as reduced willingness to create and honour life‐long partnerships. Survey and in‐depth interviews with samples of 20–29 year olds living in an urban area of Scotland finds little support for the postulated link between growing cohabitation and a weakened sense of commitment to long‐term arrangements. Most of the cohabiting couples strongly stressed their ‘commitment’. Socially acceptable vocabularies of motive undoubtedly influenced answers but interviews helped to explore deeper meanings. Many respondents’ views were consistent with previous research predictions of a weakening sense of any added value of marriage. At the same time, some respondents continued to stress the social significance of the distinction between marriage and cohabitation, consistent with research interpreting cohabitation as a ‘try and see’ strategy part‐way to the perceived full commitment of marriage. The notion that ‘marriage is better for children’ continued to have support among respondents. While, on average, cohabiting couples had lower incomes and poorer employment situations than married couples, only very extreme adverse circumstances were presented as making marriage ‘too risky’. Pregnancy‐provoked cohabitation was not always in this category. Cohabitation was maintained because marriage would ‘make no difference’ or because they ‘had not yet got round to’ marriage. Most respondents were more wary of attempting to schedule or plan in their personal life than in other domains and cohabitees’ attitudes to partnership, including their generally ‘committed’ approach, do not explain the known greater vulnerability of this group to dissolution.     

The effects of direct experience on consumer product evaluation

The effects of different sales strategies on consumer product evaluation were investigated. It was expected that direct product experience could decrease economic product valuation. Experiments 1 and 2 studied the effects of product trials and money-back guarantees on consumer willingness to pay (WTP). It appeared that WTP was significantly lower after a product trial than with a money-back guarantee or normal sale. In Experiment 3 a structural equation model showed that product trials had a positive effect on attitude toward the product. Also, a negative effect on WTP was found when the effect was measured directly, but a positive effect when the effect was measured indirectly (through attitude).     

Church organists: Analysing their willingness to play

There currently exists a scarcity of church organ players even though they have traditionally been paid. This paper presents an empirical investigation into the factors that affect the church organ player's willingness to play. Results suggest pay does not attract the organ player to the position but being paid in situ increases their willingness to play, as do larger choir sizes and a better instrument quality. We also identify that organ players should be taught when they are young, as the younger the church organ player starts learning the instrument then the greater their willingness to play.     

Distribution of local plant knowledge in a recently urbanized area (Campeche District,Florianópolis,Brazil)

All over the world, coastal villages are changing rapidly due to the increasing pressures from tourism and urbanization. In this study we investigate ethnobotanical knowledge of current residents of Campeche District, a coastal area that has undergone a rapid process of urbanization, related to 13 native plant species. We also discuss how residents understand and conceptualize the term ‘restinga’, which corresponds to the areas of native vegetation still found at the study site. We interviewed 176 residents in four strata according to time of residence in the district: 0–9 years, 10-19 years, 20-29 years and +30 years, corresponding to the periods of most accentuated demographic growth in the area. Psidium guajava and Eugenia uniflora were the most known, recognized and used plants by respondents. Plant recognition, naming and known uses are strongly correlated; yet there was no difference related to the age of respondents. The only stratum with significant differences in the number of plants named, known and used is the +30 year of residence time, not related to the age of respondents. Explanations given by respondents for the definition of ‘restinga’ were grouped into: vegetation, physical space and ecosystem. Most answers associated ‘restinga’ to vegetation. Knowledge on local flora is affected by the increased amount of migrants and the rapid urbanization in the district during the last 30 years.