Browsing by Subject "Contingent valuation"

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Chinese urbanites and the preservation of rare species in remote parts of the country
the example of Eaglewood
(2014) Pelz, Sonna; Langenberger, Gerhard; Frör, Oliver; Ahlheim, Michael
Based on a Contingent Valuation study in Shanghai we assess peoples willingness to contribute personally to the alleviation of environmental problems occurring in distant parts of the country. One split of our survey assessed Shanghai residents willingness to pay for the preservation of rainforest in Yunnan, while the other split referred to the willingness to pay for the preservation of a single plant species (i.e. eaglewood) growing in this rainforest. The objectives of this study were twofold. Firstly, we wanted to find out if people living in big Chinese cities like Shanghai take an interest in the environmental problems existing in some remote parts of the country and if they are willing to contribute personally to remedy these problems. Secondly, we wanted to learn more about the motivation behind this kind of empathy, if it exists. We were especially interested in the question if this empathy refers to the specific environmental problems we addressed in our surveys or if it is motivated more by a general feeling of obligation towards environmental issues.
Contingent valuation and money attitudes
(2015) Pelz, Sonna; Ahlheim, Michael
The Contingent Valuation Method (CVM) is one of the most frequently applied techniques to assess and monetise the benefits of environmental improvements. This survey-based method aims to elicit individuals’ willingness to pay (WTP) for enhanced environmental quality by means of hypothetical payment questions. Analysts interpret stated WTP as the monetary equivalent of the utility gain an individual expects to experience due to a specific environmental improvement. In spite of its frequent use, the validity of WTP statements is recurrently questioned and analysts have pointed to several sources of bias, such as a poor CVM survey design or certain characteristics of the respondents. This dissertation focuses on respondent characteristics which hitherto have not been examined, namely individuals’ attitudes towards spending money in general. The disposition of a person to spend money is expected to systematically affect and possibly bias stated WTP. While money attitudes have been extensively studied in psychological research, they have never been considered to be of influence in the context of environmental valuation. Given this lack of research, this dissertation investigates, theoretically and empirically, the role of money attitudes in CVM surveys.
Drinking and protecting - a market approach to the preservation of cork oak landscapes
(2010) Frör, Oliver; Ahlheim, Michael
With the availability of new techniques to close wine bottles avoiding the risk of ?corky? taste the tradition of closing wine bottles with cork stoppers is on the retreat. As a consequence the Mediterranea cork oak forests with their rich biodiversity are endangered since their cultivation is not profitable anymore. This paper explores the viability of a market approach to the preservation of these ecologically valuable landscapes. In an internet-based Contingent Valuation survey we assess wine consumers' willingness to pay a higher price for wine bottles closed with high-quality cork stoppers instead of buying wine with alternative stoppers in order to preserve the cork oak landscapes. We find that though many wine consumers have experience with tainted wine they are, nevertheless, willing to buy wine with (highquality) cork stoppers at higher prices. Their average WTP is, however, not sufficient to cover the additional costs of these stoppers. Thus, we propose a financing mix of market returns and government subsidies for preserving the cork oaks. As a precondition for this market approach to be successful bottles with high-quality cork stoppers must be clearly identifiable in the shops, and consumers must be informed about the ecological consequences of supporting the cork production.
Labour as a utility measure in contingent valuation studies
how good is it really?
(2010) Ahlheim, Michael; Frör, Oliver; Heinke, Antonia; Duc, Nguyen Minh; Van Dinh, Pham
The Contingent Valuation Method (CVM) aims at the assessment of people's willingness to pay (WTP) for a public project. The sum of the individual WTPs is interpreted as the social benefits of the project under consideration and compared to the project costs. If the benefits exceed the costs the project is recommended for realization. In very poor societies budgets are so tight that households cannot give up any part of their income, i.e. of their market consumption, in favour of a public project, so that their WTP for that project stated in a CVM interview has to be zero or close to zero. This leads to a severe discrimination against poor regions in the decision process on the allocation of public funds. Therefore, several authors suggest to use labour contributions to the realization of a public project instead of monetary contributions as a measure of people's WTP for that project. In this paper we show theoretically and empirically, based on a CVM study conducted in Vietnam, that labour is severely flawed as a measuring rod for individual utility so that CVM based on labour contributions does not provide a reliable and meaningful decision rule for the allocation of public projects.
Labour as a utility measure reconsidered
(2017) Pham, Van Dinh; Ahlheim, Michael; Frör, Oliver; Nguyen, Minh Duc; Rehl, Antonia; Siepmann, Ute
In Stated Preference studies for the appraisal of environmental projects in poor countries or regions it often turns out that the stated willingness to pay of people for environmental improvements, which is used as measure of individual welfare changes, is very low. This is often interpreted as the result of extremely tight budget constraints, which make it impossible that people express their true appreciation of an environmental project in terms of their willingness to pay for it. Therefore, it is sometimes suggested to use labour contributions instead of money as a numeraire to measure utility in such studies. In this paper we show theoretically and empirically that this suggestion is not compatible with the principles of welfare theory because of several inconsistencies. We also illustrate the validity of our arguments empirically based on the results of a Contingent Valuation study conducted in a rural area in northern Vietnam.
Wasted! Resource recovery and waste management in Cuba
(2018) Trastl, Heike; Ahlheim, Michael; Becker, Maike; Allegue Losada, Yeniley
The collection of solid waste and the recovery of recyclable material from waste belong to the many challenges Cuba has been facing over the past years. In this paper, we give a short account of the actual waste situation and analyze the causes of the obvious deficiencies of the waste sector. We conducted a small survey in Havana city in order to assess peoples awareness of the garbage problem, their appraisal of the actual situation and their willingness to contribute personally to an improvement of the waste situation. Based on the insights gained from this survey and from our theoretical analysis of the Cuban waste management we develop suggestions for an improvement of the waste situation in Cuba. These suggestions take into account that the financial means available for a reform of the waste management system in Cuba are severely restricted. Therefore, our suggestions are more focused on organizational and motivational changes than on the introduction of high technology.