Grantee Research Project Results
1998 Progress Report: A Comparison of Direct Methods for Valuing Environmental Policies: A Case Study in New Hampshire's White Mountains
EPA Grant Number: R825824Title: A Comparison of Direct Methods for Valuing Environmental Policies: A Case Study in New Hampshire's White Mountains
Investigators: Halstead, John M. , Stevens, Thomas H. , Hill, L. Bruce
Current Investigators: Halstead, John M. , Hill, L. Bruce , Stevens, Thomas H.
Institution: University of New Hampshire , University of Massachusetts - Amherst
EPA Project Officer: Chung, Serena
Project Period: October 1, 1997 through September 30, 1999 (Extended to December 31, 2000)
Project Period Covered by this Report: October 1, 1997 through September 30,1998
Project Amount: $159,071
RFA: Decision-Making and Valuation for Environmental Policy (1997) RFA Text | Recipients Lists
Research Category: Environmental Justice
Objective:
(1) to compare and contrast two frequently used methods of valuation on nonmarket commodities such as visibility (the contingent valuation methods and Conjoint analysis) to provide insight into which (if either) might be the more appropriate technique to address the problem at hand; (2) to derive estimates of the impacts of visibility changes in the White Mountains region of New Hampshire on visitors to the region; and (3) to use these estimates to determine part of the potential economic impact of deregulation of the electric industry in New Hampshire.Progress Summary:
In the first year of the project, a computer-based survey was developed and pre-tested, and subsequently administered on a face-to-face basis. A computer program (Win Haze) was purchased to generate images of the White Mountains which allowed researchers to control for the precise visual ranges and air quality with which respondents were confronted.Visitor surveys in Pinkham Notch, NH over the course of spring, summer, and fall of 1998 have been completed and have yielded between 250 and 300 useable observations. Preliminary results indicate that there may be subtle differences in the responses to those surveys using the contingent valuation method (CVM) as compared to the conjoint analysis (CA) method. Ongoing analysis of consumer surplus estimates generated using the two techniques will generate comparable estimates so that more conclusive results can be produced. Ancillary data on travel costs have also been collected and collated.
Comparison of the survey results with previous visual valuation surveys indicates that the presence of clouds in the valuation photographs may be a confounding influence. Specifically, it is not clear whether respondents are bidding on differences in air quality/visibility or some other motivating factor. Further research and publication on this issue will ensue.
Future Activities:
As noted, analysis of data conducted at Pinkham Notch will continue to provide information on differences in consumer surplus (if any) generated by the two valuation techniques. This research will result in a dissertation, several papers presented at professional meetings, and several journal articles.In addition, the survey will be conducted at several new locations in 1999. Sites which are in the White Mountains but which should yield a more diverse sample (e.g. the overlook on the Kancamagus Highway) will be surveyed. The University of Massachusetts will conduct "off-site" research--far removed from the mountains--to determine if proximity affects results. These additional survey efforts will not only provide additional information in comparing CVM and CA, but will provide a more diverse sample population so that inferences may be drawn on the value of changes in visibility/air quality in the region.
Journal Articles:
No journal articles submitted with this report: View all 19 publications for this projectSupplemental Keywords:
RFA, Scientific Discipline, Economic, Social, & Behavioral Science Research Program, Geographic Area, State, Economics, decision-making, Ecology and Ecosystems, Economics & Decision Making, Psychology, Social Science, New Hampshire (NH), air pollution policy, contingent valuation, ecosystem valuation, empirical validation, community involvement, direct valuation method, electric industry deregulation, environmental values, New Hampshire's White Mountains, non-market valuation, nonmarket choice, psychological attitudes, public values, benefits assessment, conjoint analysisProgress 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.