Grantee Research Project Results

1997 Progress Report: Stated Preference Valuation Using Real Money for Real Forested Wetlands

EPA Grant Number: R825307
Title: Stated Preference Valuation Using Real Money for Real Forested Wetlands
Investigators: Swallow, Stephen K.
Institution: University of Rhode Island
EPA Project Officer: Chung, Serena
Project Period: October 15, 1996 through October 14, 1998 (Extended to December 31, 2001)
Project Period Covered by this Report: October 15, 1996 through October 14, 1997
Project Amount: $165,081
RFA: Decision-Making and Valuation for Environmental Policy (1996) RFA Text | Recipients Lists
Research Category: Environmental Justice

Objective:

The overall objective of the research is to develop a quantitative model of public preferences for forested wetland attributes in southern New England by integrating methods from resource and environmental economics and experimental economics with knowledge from landscape ecology and conservation biology. Three main objectives of the research are: (1) to identify critical ecosystem attributes, of forested wetlands, that contribute to ecological quality and to the quality of life, (2) to develop a model of public preferences for alternative attributes of wetlands in southern New England, using Rhode Island as a case study, and (3) to estimate money-measures of value for wetland ecosystem attributes by a survey method which calibrates hypothetical dollar values to real-dollar values.

Progress Summary:

Objective (1) is partially complete (70%). The investigators have conducted an extensive review of the ecological and non-ecological factors considered in the land acquisition practices of various New England environmental organizations and agencies (such as The Audubon Society, The Nature Conservancy, and state level environmental protection agencies). The investigators, also, have conducted personal interviews with representatives from some of these organizations to learn what ecological factors (particularly in forested areas) interest their members and supporters. Preliminary work towards a methodology to complete Objectives (2) and (3) has begun in earnest. The investigators have developed and pre-tested a preliminary approach which adapts contingent choice survey questions to estimate real-money values. The pre-test, which elicited individual preferences for real water quality monitoring programs, illustrates the feasibility of accomplishing Objectives (2) and (3), as specified in this project. A paper based on our preliminary approach has been submitted to a peer reviewed journal, Agricultural and Resource Economics Review.

Accomplishments and Research Results:

To date, several accomplishments and research results have been reached. First, as mentioned above, several activities involved in identifying ecosystem attributes of forests (and particularly forested wetlands) which contribute to environmental quality and the quality of life have been accomplished. A review of the land acquisition priorities of various environmental organizations and interviews with some of their representatives indicate that the following forest attributes are important: richness and uniqueness of species inhabiting the forest, accessibility of forest to public, potential for educational uses, location to water bodies, uniqueness of ecosystem functions, size of parcel, characteristics of neighboring land, and adjacency to sanctuaries and other protected land. Other important concerns which have been identified are: preservation of rare ecosystems (such as Cedar Swamps), linking habitats and large protected areas, and protection of many species and large areas of ecological landscape. These results, in conjunction with planned focus groups made-up of Rhode Island residents, will complete Objective 1 and lead to the development of contingent valuation surveys which will elicit public preferences and willingness-to-pay for various attributes of forested wetlands.

Another important accomplishment is the development and pre-test of a preliminary approach to compare hypothetical and real-money values of environmental resources elicited in a contingent choice survey format. The preliminary approach used a split-sample design wherein different samples of respondents (consisting of college students from U.R.I.) answered either a hypothetical or a real-money survey which elicited their preferences for water quality monitoring programs. In the real-money surveys, respondents had a real opportunity (conditional on reaching a group total contribution) to add one or two ponds to a water quality monitoring program coordinated by staff at U.R.I. (Cooperative Extension, U.S.A.). The results of the preliminary study suggest that hypothetical willingness-to-pay (WTP) exceeds real WTP, but this may still reflect the free-riding problem (rather than a flaw in the hypothetical survey) or the result may reflect the nature and magnitude of value for the good being offered. The preliminary study also found that (i) the specified purpose of monitoring and (ii) certain socioeconomic characteristics of the respondents significantly affect a respondent's decision to support volunteer water quality monitoring.

Future Activities:

Planned future activities are: (1) complete focus groups on public opinions concerning forest conservation, (2) pre-test a mail/field version of our hypothetical and real-money surveys, (3) complete survey design for forested wetlands case, (4) conduct forested wetland survey, (5) analyze data, and (6) prepare papers/presentations and write report.

Journal Articles:

No journal articles submitted with this report: View all 15 publications for this project

Supplemental Keywords:

contingent choice/valuation, real environmental goods, hypothetical-choices, real-choices, calibration, RFA, Scientific Discipline, Economic, Social, & Behavioral Science Research Program, Economics & Decision Making, Economics, decision-making, Social Science, Ecology and Ecosystems, Environmental Monitoring, compensation, public values, valuing environmental quality, willingness to pay, landscape ecology, ecosystem valuation, policy analysis, standards of value, community involvement, cost effectiveness, stakeholder, biodiversity option values, environmental values, public policy, surveys, decision analysis, economic incentives, psychological attitudes, social psychology, forested wetlands, contingent valuation, stated preference, conservation, environmental assets

Progress and Final Reports:

Original Abstract

The perspectives, information and conclusions conveyed in research project abstracts, progress reports, final reports, journal abstracts and journal publications convey the viewpoints of the principal investigator and may not represent the views and policies of ORD and EPA. Conclusions drawn by the principal investigators have not been reviewed by the Agency.