Contingent Valuation Method

This research project on the valuation of cultural heritage is developing a methodology for a quantitative valuation study of the use and non-use values of historic heritage places. The methodology developed in this project will provide a template for subsequent empirical applications to generate data of use in the formulation of heritage policies and programs. The initial stages in reaching

Land reclamation of derelict landscapes, until in recent times, was a rare experience, especially in developing countries. This has however changed with the adoption of environmental policies and legislative frameworks in most countries in the world. This drive was mainly inspired by the conservation strategies developed and promoted by the International Union for the Conservation of Nature and Natural Resources (IUCN). This article is a presentation of the findings and observations that led to successful land reclamation by the cement factory. Steps taken for this reclamation effort were of prime interest to the author and were retraced resulting in this position paper. A comparative approach is used, given the conventional methods that most projects of this nature employ. Most of the environmental and land degradation are caused by profit motivated industries who do nothing or very little to repair the damage caused in the course of their work. The Haller Park at the Bamburi cemen...

In view of the scarcity of financial resources, urban planners in developing countries are attempting to conserve heritage sites on a self-financing basis through their development as visitor attraction sites. The economic justification of such programmes can be sought in terms of the potential revenue from heritage tourism.This approach, however, neglects the significant non-use values derived from heritage resources. Based on the contingent valuation method, the Total Economic Value for Prinsep Ghat in Calcutta, India, is estimated using limited dependent regression models. While a TOBIT model is used to determine the determinants of the willingness to pay, a truncated model is used to identify the characteristics of the potential clientele. The results show the presence of a substantial untapped demand for the site that can be utilized by suitable marketing of the site without affecting its historic appeal.

The aim of the present study was to find a mechanism for funding the extension of the drinking water network to the poor neighbourhoods of the District of Abidjan in order to bring drinking water close to the disadvantaged populations. To this end, microeconomic data collected from one thousand households, spread over the entire territory of the Abidjan District, were used. A statistical analysis enabled the study to describe poor population's access to drinking water and to highlight the inadequacies in the distribution of such a universal service. The use of type-II tobit model (the Heckman method) in analysing the data also enabled the study to identify the main explanatory factors for the district's population's willingness to pay (WTP) for the extension of the drinking water distribution network to their poor neighbourhoods. And average WTP for water extension in Abidjan is 140350 CFA francs per household and per year. Resume Cette étude vise à trouver un mécanisme de financement de l'extension du réseau de distribution d'eau aux quartiers précaires du District d'Abidjan afin de faciliter l'accès à l'eau potable aux populations défavorisées. Pour ce faire, des données microéconomiques ont été collectées auprès de 1000 ménages répartis sur l'ensemble du territoire de cette agglomération. L'analyse statistique de ces données a permis de caractériser l'accès à l'eau potable des populations démunies et de montrer les insuffisances dans ce service universel. L'application d'un modèle tobit de type II (méthode de Heckman) à ces données a également permis d'identifier les principales variables explicatives du consentement à payer (CAP) des populations pour

Loss of rainforest occurs in part because of a global market failure problem. Markets routinely transmit signals about international demands for forest products such as timber, but fail to transmit signals about demands for preservation. To make efficient resource allocation choices, decision makers need some framework to estimate the non-use values that might be held by an international community for

This study introduces a prototype model for evaluating policies to abate agricultural nutrients in the Baltic Sea from a Finnish national point of view. The stochastic simulation model integrates nutrient dynamics of nitrogen and phosphorus in the sea basins adjoining the Finnish coast, nutrient loads from land and other sources, benefits from nutrient abatement (in the form of recreation and other ecosystem services) and the costs of agricultural abatement activities. The aim of this study is to present the overall structure of the model and to demonstrate its potential using preliminary parameters. The model is made flexible for further improvements in all of its ecological and economic components. Results of a sensitivity analysis suggest that investments in reducing the nutrient runoff from arable land in Finland would become profitable only if Finland’s neighbors in the northern Baltic committed themselves to similar reductions. Environmental investments for improving water qua...

In many developing countries limited health budgets are a serious problem. Innovative ways to raise funds for the provision of health services, for example, through health care insurance, have a high priority. Health care insurance for rural households shields such patients from unexpected high costs of care. However, there are questions about whether, and how much, rural households are willing to pay to purchase such insurance, as well as the factors determining willingness to pay. In recent years the Iranian government has tried to improve health and medical services to rural areas through a health insurance program. This study was conducted to estimate rural households’ demand and willingness to pay for health insurance. A contingent valuation method (CVM) was applied using an iterative bidding game technique. Data has been collected from a sample of 2,139 households across the country.

There is an increasing body of contingent valuation (CV) studies applied to cultural heritage sites. These CV studies assess the social benefits of cultural resources, but few provide advice on the policy use of the results and the ways these benefits could be captured and used to improve the condition of the sites. This study attempts to do exactly this by conducting a CV survey of a preservation program for a World Heritage site, and using the estimated benefits for visitors to assess optimal entrance fees that maximize revenues for the site. We also perform a cost-benefit analysis of the preservation project, and show how the outcome can be used to justify investments in cultural heritage preservation.

This paper measures willingness to pay (WTP) for public access and trail improvements on commonage farmland for recreational walking in upland and lowland areas of Connemara region in the West of Ireland using the contingent valuation method (CVM). Common to both upland and lowland commonage sites was the much higher ranking for infrastructural features by those WTP for scenario implementation compared to those preferring the status quo. Results for those expressing a positive WTP reveal a median willingness to pay (MWTP) for formal access with improved trail infrastructure of €12.22 for the lowlands compared with €9.08 for the uplands.

The study aims to apply willingness-to-pay (WTP) values derived from the literature to inform decision-makers of the cost-effectiveness of the Tailored Activity Program (TAP), an intervention proven to reduce caregiver burden. TAP and other caregiver interventions employ an individual perspective and non-quality-adjusted life-year (QALY) outcome measure where the primary objective is to determine caregiver burden from an individual perspective. Therefore, standard cost/QALY thresholds are not appropriate. To identify relevant WTP values, we searched for studies that: 1) were published in the past 5 years and used contingent valuation methodology to identify WTP; 2) assessed WTP for a dementia-related intervention requiring out-of-pocket expenditure; and 3) asked caregivers their WTP for an outcome related to reducing caregiver burden. Three studies were identified utilizing four WTP values. We also assessed potential financial savings that caregivers could achieve from purchasing TA...