Showing papers by "Jeffrey Bennett published in 2002"

Choice Modeling and Tests of Benefit Transfer

Abstract: Choice modelling (CM) is a stated preference technique that is increasingly being used to generate estimates of non-market values. In CM applications, respondents to a survey are presented with several sets of options, which contain common attributes but at varying levels, and are asked to select their preferred alternative from each set. The information provided by respondents' choices is used to estimate marginal rates of substitution and, hence, estimates of value. In this paper the results from three separate CM applications are presented. Estimates are made of the value of improving the quality of wetlands. The first two applications focused on the Gwydir Wetlands in New South Wales, Australia. One survey was conducted in Sydney, a major urban centre, and the second was conducted in Moree, a rural centre close to the Gwydir Wetlands. The third survey, which was also conducted in Sydney, focused on the Macquarie Marshes, another wetland in New South Wales. An objective of the study was to test the suitability of using CM derived estimates for benefit transfer, both across different populations and across different wetlands. CM is potentially suited to benefit transfer because it is possible to allow for differences in environmental improvements between sites as well as differences in socio-economic characteristics between respondent populations. Several tests aimed at determining the validity of transfers using CM across sites and populations are presented. These include tests of the equality of models, implicit prices and estimates of compensating surplus.

Stated values and reminders of substitute goods: Testing for framing effects with choice modelling

Abstract: Choice modelling, a non-market valuation technique, is used to explore framing issues in the context of environmental valuations. Choice modelling appears to have promise in simultaneously valuing a pool of substitute amenities and goods. Describing choices according to component attributes can also help to frame choices according to a number of trade-offs. The statistical information available helps to determine where framing effects have occurred. Three choice modelling experiments were reviewed to show that framing effects may be more widespread in non-market valuation studies than is commonly thought.

Attribute Causality in Environmental Choice Modelling

Abstract: When selecting attributes in environmentalChoice Modelling studies, preference should begiven to those attributes that aredemand-relevant, policy-relevant, andmeasurable. The use of these criteria willoften result in a short list of environmentalattributes of which some are causally related. The inclusion of attributes that have a``cause-effect'' relationship may stimulate somerespondents to seek to understand the causalrelations among attributes in order to assigngreater meaning to the alternatives, andpotentially, simplify the decision makingprocess. This may have implications for theweights they assign to each of the attributeswhen identifying the preferred alternatives,and subsequently for the implicit prices and/orwelfare estimates. A test of the impact ofincluding an attribute that causesimpacts on ecosystem health as well as anattribute relating to ecosystem health effectson parameter estimates, implicitprices and welfare estimates is conducted. Twoquestionnaires are developed, one with the`causal' attribute included and one without. Acomparison of results indicates that when the`causal' attribute is included in the vector ofchoice attributes, the implicit value of asingle endangered species falls by 34 per centwhilst no significant difference is detected inthe parameter estimates. Importantly, however,estimates of compensating surplus for a givenpolicy package do not differsignificantly across the two treatments. Thisimplies that to the extent that the inclusionof a `causal' attribute reduces the implicitprices for one or more of the `effect'attributes, the associated loss in utility isapproximately offset by the utility nowassociated with the new attribute.

A Travel Cost Study of Duck Hunting in the Upper South East of South Australia

Abstract: Wetlands in the Upper South East (USE) of South Australia yield a range of values to their owners and to the wider community. One such value is that generated by duck hunting in the region. Wetland owners receive private benefits from hunting fees, while hunters gain a non-monetary consumers' surplus. These non-monetary benefits received by duck hunters through their enjoyment of hunting in wetlands are the primary focus of this paper. In order to estimate these values, a 'travel cost' survey of duck hunters participating in an organised shoot held by Wetlands and Wildlife in February 2000 was undertaken. The extent of the private recreation benefits so estimated is assessed in terms of their potential to stimulate the provision of wetlands for both private and social benefits.

A comparison of contingent valuation and choice modelling: estimating the environmental values of Catalonian forests

Abstract: In this study welfare measures estimated using two different stated choice methods, the contingent valuation method and choice modelli ng, are compared. The application involves the estimation of non-market values from alternative afforestation programs in the northeast of Spain. The two techniques are found to yield equivalent estimates of welfare change for identical afforestation programs when the fully specified utili ty functions are used as the basis for the calculations. When elements of the utili ty functions – for instance the alternative specific constants and the socio-demographic variables – are omitted from the value estimation procedure, significant differences do occur between estimates derived using the two valuation techniques.

Tests of Benefit Transfer Across Sites and Populations in the Fitzroy Basin, Research Report No. 4

Abstract: Policy makers are often interested in transferring benefit estimates made in one situation to related circumstances. This transfer of values may be inaccurate if significant differences exist between the sites in question, or if different population groups are involved. To identify where benefit transfer applications may be appropriate, the results of similar Choice Modelling experiments across different sites and population groups are reported. The experiments were centered on a major river catchment in Queensland, Australia, and indicate that some benefit transfers are possible.

Developmental neurogenetics and neuro-ophthalmology.

Abstract: The field of developmental neurogenetics has burgeoned over the past decade. Through the combined efforts of developmental biologists, geneticists, and clinicians, genetic defects resulting in neuro-ophthalmic disorders such as holoprosencephaly, microphthalmia, dominant optic atrophy, and optic nerve colobomas have been identified and characterized at the molecular level. Experimental studies in model organisms are continuing to identify novel genes critical for ocular and central nervous system development. Mutations in some of these genes have revealed a spectrum of pathology similar to that observed in septo-optic dysplasia, Moebius syndrome, and Duane retraction syndrome. This review examines our current knowledge of the molecular genetics of neuro-ophthalmic disease and focuses on several candidate genes for afferent and efferent visual system disorders.

Disaggregating consumer demands for organic and genetically modified foods using the Choice Modelling technique

Abstract: Issues concerning consumer demands for genetically modified and organic food remain highly topical in Australia. It is unclear how consumers perceive issues associated with food production such as food safety, environmental impacts or animal welfare. It is also unclear how consumers might value potential changes in those issues. This paper reports on research using the choice modelling technique to estimate and compare consumer demand for genetically modified and organic foods. The case study considers commodities including tomatoes, milk and beef. The results provide some indication of the contribution of associated factors with consumer choices, as well as exploring consumer values for higher food safety standards. The results are of relevance to the current policy debate regarding the introduction of GM foods to Australia.

Environmental Management and the Competitiveness of Nature-Based Tourism Destinations

Abstract: Environmental management, either voluntary or imposed, can add to the costs of nature-based tourism businesses. Such costs can make tourism destinations less competitive, but the same activities can also enhance competitiveness by increasing demand. The aim of this book is to provide an assessment of the relative importance of these two opposing effects in the context of a case study of nature-based tourism in Tropical North Queensland, Australia.

Signalling the Values of Wetlands

Abstract: The successful coordination of human activity requires the establishment and enforcement of rules. Ownership rules for the conservation of wetlands are either absent or inadequate. This means that signals regarding the values held by the wider community for wetland conservation are not received effectively by landholders who can provide those values. Hence the incentives for landholders to conserve their wetlands are weak in comparison to those they receive to use their wetland resources for extractive purposes. To illustrate the importance of wetland protection values, the findings of a number of valuation exercises are presented. A range of mechanisms designed to act as signalling and incentive generation devices in the absence of strong ownership rules for wetland conservation benefits is provided.

Choice Modeling and Tests of Benefit Transfer

Abstract: Benefit transfer is increasingly being used by decision makers as a way of estimating environmental values suitable for use in benefit cost analysis. However, recent studies examining the validity of benefit transfer of passive use values estimated using contingent valuation have rejected the hypothesis of convergent validity. In this article, we demonstrate the usage of a form of conjoint analysis known as choice modeling for benefit transfer. Choice modeling has been touted as being particularly suitable for benefit transfer because it is possible to allow for differences in environmental quality and socioeconomic characteristics when transferring benefit estimates. We demonstrate that choice modeling is suitable for benefit transfer, particularly when the transfers involve implicit prices. Second, we examine the circumstances in which benefit transfer of choice modeling derived value estimates is likely to be most valid. Two split sample tests were undertaken to achieve this objective. The evidence from these tests indicates that transfers across different case study sites are likely to be subject to less error than those across different populations.

Framing Effects and Benefit Transfer in the Fitzroy Basin

Abstract: Policy makers are often interested in how estimates of the value of an environmental asset may be disaggregated into component pieces. This is particularly the case when they are seeking to transfer benefit estimates made in one situation to related circumstances. This is the case for the environmental values of the Fitzroy River basin in Central Queensland. The basin comprises several smaller catchments that share similar development opportunities, environmental issues and water resource constraints. This paper describes an application of the choice modeling technique to estimate values for the basin as a whole and two of the smaller catchments to determine how values may be related. Comparisons are undertaken to assess the validity of the choice modeling approach to benefit transfer issues in environmental valuation studies.

Scale and Quantity Effects and Their Importance for Benefit Transfer of Natural Resource Values in the Fitzroy Basin, Research Report No. 5

Abstract: Policy makers are often interested in how values for an environmental asset may be is aggregated into component pieces and transferred from one site to another. This issue can be described in relation to environmental values for the Fitzroy Basin in Central Queensland. The Basin comprises several smaller catchments that share similar development opportunities, environmental issues and water resource constraints. This paper describes the application of Choice Modelling to estimate environmental and social values for the Basin as a whole and two of its component sub-catchments. The results of the application provide an understanding of how the values estimated at different scales may be related. If there are no significant differences in values estimated at different scales, it implies that benefit transfer may be undertaken for different sites at different scales without adjustment. Various experiments using scale and quantity variances are reported to allow comparison of the estimates.

Scale Effects and Their Importance for Benefit Transfers of Natural Resource Values in the Fitzroy Basin, Research Report No. 6

Abstract: Policy makers are often interested in how values for an environmental asset may be disaggregated into component pieces and transferred from one site to another. This issue can be described in relation to environmental values for the Fitzroy basin in Central Queensland. It comprises several smaller catchments that share similar development opportunities, environmental issues and water resource constraints. This paper describes the application of a choice modelling experiment to estimate values for the basin as a whole and two of the smaller catchments. The results of the application allow the analysts to determine how the values Calculated at different times may be related. If there are no significant differences in values according to the scale at which they have been estimated, it implies that benefit transfer may be undertaken to different sites at different scales without results being adjusted. Comparisons of experiment results are undertaken to assess the validity of the choice modelling approach to benefit transfer in environmental valuation studies where issues of scale may be present.

Framing effects and benefit transfer in the Fitzroy basin

Abstract: Policy makers are often interested in how estimates of the value of an environmental asset may be disaggregated into component pieces. This is particularly the case when they are seeking to transfer benefit estimates made in one situation to related circumstances. This is the case for the environmental values of the Fitzroy River basin in Central Queensland. The basin comprises several smaller catchments that share similar development opportunities, environmental issues and water resource constraints. This paper describes an application of the choice modelling technique to estimate values for the basin as a whole and two of the smaller catchments to determine how values may be related. Comparisons are undertaken to assess the validity of the choice modelling approach to benefit transfer issues in environmental valuation studies.

Stated Values and Reminders of Substitute Goods: Testing for Framing Effects with Choice Modelling

Abstract: Choice modelling, a non-market valuation technique, is used to explore framing issues in the context of environmental valuations. Choice modelling appears to have promise in simultaneously valuing a pool of substitute amenities and goods. Describing choices according to component attributes can also help to frame choices according to a number of trade-offs. The statistical information available helps to determine where framing effects have occurred. Three choice modelling experiments were reviewed to show that framing effects may be more widespread in non-market valuation studies than is commonly thought.

What Value Viable Country Communities

Abstract: Ensuring the continued viability of rural and regional communities in Australia has become a high priority politically. Economic and environmental forces are perceived as threats to viability. Declining terms of trade for agricultural commodities along with decreased relative prices for transportation and communication services have led to fewer and more concentrated regional centres. Environmental threats such as dryland salinity are perceived as potential future causes of diminished settlement densities. In Europe and the United States of America, similar political pressures to keep rural communities viable are also apparent, often as a component of the “multi-functionality” of agriculture. Given that these pressures are manifest in the form of demands for public resources, the question is whether or not the tax paying public enjoy benefits from any resultant improvement in country community viability. As an integral component of a number of recent non-market, environmental valuation exercises, the value of these benefits have been estimated. The results demonstrate a positive “existence value” held primarily by urban dwellers for country communities.

Targetting Incentives for Policy: Linking Bio-Economic Modeling to On-Ground Outcomes

Abstract: Environmental policy has assumed a high profile in Australia with recent policies addressing aspects of land degradation (National Heritage Trust and the National Action Plan), forest management (Regional Forests Agreements) and climate change (programs administered by the Australian Greenhouse Office), among others. These policies are often based on relatively little information about the likely benefits to be generated or cost borne. In this paper, the issue of policy development is directly addressed using a case study of wetland policy. The desirable scale of the policy response to environmental issues is informed by the development of the notion of threshold policy analysis. The suite of policy options that should be adopted is dependent on the scale and type of change desired from the policy. The degree of irreversibility and notion of environmental impact thresholds also affects the choice and timing of alternative policy options. Timing of policy is therefore a function of quasi-option values – the value of postponing a decision to obtain more information.