Grantee Research Project Results
1998 Progress Report: Updating Prior Methods for Non-Market Valuation A Bayesian Approach to Combining Disparate Sources of Environmental Values
EPA Grant Number: R825310Title: Updating Prior Methods for Non-Market Valuation A Bayesian Approach to Combining Disparate Sources of Environmental Values
Investigators: Herriges, Joseph A. , Kling, Catherine L.
Institution: Iowa State University
EPA Project Officer: Chung, Serena
Project Period: October 1, 1996 through September 30, 1998
Project Period Covered by this Report: October 1, 1997 through September 30, 1998
Project Amount: $210,199
RFA: Decision-Making and Valuation for Environmental Policy (1996) RFA Text | Recipients Lists
Research Category: Environmental Justice
Objective:
- To develop and test Bayesian procedures for combining disparate sources of nonmarket valuations
- To develop and test Bayesian procedures for benefits transfer
- To estimate the value of wetland restoration
Progress Summary:
We have completed the data collection phase of the project. Following an initial design phase and a series of focus groups, the wetlands survey was pre-tested using a mailing to 600 Iowa households in November 1997. Of the deliverable surveys, there was an overall response rate of approximately 51%. A final survey instrument was constructed and mailed to 6000 Iowa households in February and March of 1998, with an overall response rate of 58%. The survey itself collects information on:
- Actual wetland usage patterns in Iowa during 1997 and potential usage patterns under alternative visitation costs;
- Household knowledge about and attitudes towards existing wetlands and alternative wetland restoration/protection programs;
- Contingent valuation of two existing wetland projects: (1) the Prairie Pothole Joint Venture in north-central Iowa and (2) the Iowa River Corridor Project in east-central Iowa; and
- Household socio-demographic characteristics.
All of the survey data have been entered into our computer system. In addition, using the software package PCMiler, travel time and travel costs to have been constructed for each households and each destination in the 99 counties of Iowa.
Preliminary analysis of the data is now underway. Using both parametric and semi- nonparametric estimators, a contingent valuation analysis of the Prairie Pothole Joint Venture suggests that households are, on average, willing to pay about $4 for the program to restore roughly 38,000 acres of wetlands. These valuations vary significantly by the characteristics of the households, with hunters and fishers willing to pay significantly more and older Iowans willing to pay significantly less. Further analysis is needed to determine the impact that proximity to the region has on willingness to pay. A similar analysis is underway to estimate the perceived value of the Iowa River Corridor Project.
We have also begun the analysis of statewide wetland usage patterns. In this effort, we are using survey data on household visitations to 15 aggregate wetland zones in Iowa. Households were asked to provide information both on their actual usage patterns (i.e., revealed preferences) and how those patterns would change if visitation costs were to increase (i.e., stated preferences). We are now in the process of developing and estimating a classical approach to combine these two sources of information. Preliminary results will be presented at the Western Regional Project (W-133) in February 1999.
Future Activities:
Our future activities can be divided into three tasks. First, we will be completing the analysis of the Prairie Pothole Joint Venture and the Iowa River Corridor projects. Second, we will continue our investigation into techniques for combining stated and revealed preference data on wetland usage in Iowa. The classical approach will be supplemented during the spring of 1999 with a Bayesian approach to investigating the compatibility of these information sources. Third, given that we have information on wetland usage to 15 distinct zones within Iowa, we will investigate the potential for the transfer of wetland valuation estimates from one zone to another. It is anticipated that a Bayesian approach will again provide the natural framework within which to conduct the transfer process, with wetland values from outside a given zone providing the basis for a prior on wetland values, updating these priors using both stated and revealed preference information obtained from within the zone.Journal Articles:
No journal articles submitted with this report: View all 10 publications for this projectSupplemental Keywords:
RFA, Scientific Discipline, Economic, Social, & Behavioral Science Research Program, Economics, Ecology and Ecosystems, decision-making, Social Science, Economics & Decision Making, public resources, social psychology, benefits transfer, midwest, contingent valuation, ecosystem valuation, policy analysis, valuing environmental quality, Bayesian approach, decision analysis, environmental assets, preference formation, standards of value, non-market valuation, conservation, cost benefit, economic incentives, environmental values, cost/benefit analysis, environmental policy, psychological attitudes, public values, aquatic ecosystems, public policy, willingness to pay, wetlands preservation, value transfersProgress and Final Reports:
Original AbstractThe 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.