ECONOMIC FOUNDATIONS ΤΟ ASSESS NON-MARKET VALUES IN MARINE AND COASTAL ECOSYSTEMS’ WATER QUALITY
Abstract
Marine and coastal ecosystems are of high importance owing to the mankind dependence on the goods and services provided. Due to the lack of an official market to valuate non-marketed goods and services, contingent valuation is applied intensively in order to provide the policy makers and the society generally with the specific values derived by a developed hypothetical market. As water quality is one perspective of healthy marine and coastal ecosystems, the aim of this study is to review the theoretical framework in accordance with the existing statistical models to estimate the welfare measures and the numerous disadvantages that have to be taken into account in order to implement a reliable contingent valuation survey. This will help the decision maker to implement and follow the right steps in any valuation effort.References
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[9] Birol, E., Karousakis, K. and Kountouri, P. 2006. Using economic valuation techniques to inform water resources management: A survey and critical appraisal of available techniques and an application. Science of the Total Environment, 365: 105-122.
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[11] Bockstael, N.E., McConnell, K.E. and Strand, I.E. 1989. Measuring the benefits of improvements in water quality: The Chesapeake Bay. Marine Resource Economics, 6(1): 1–18.
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[14] Chen, H. and Randall A. 1997. Semi-nonparametric estimation of binary response models with an application to natural resource valuation. Journal of Econometrics, 76: 323-340.
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[17] Creel, M. and Loomis, J. 1997. Semi-nonparametric Distribution-Free Dichot-omous Choice Contingent Valuation. Journal of Environmental Economics and Management, 32: 341-358.
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[21] DeShazo, J.R. 2002. Designing transactions without framing effects in iterative question formats. Journal of Environmental Economics and Management, 43: 360–385.
[22] Dupont, D.P. 2003. CVM embedding effects when there are active, potentially active and passive users of environmental goods. Environmental and Resource Economics, 25: 319–341.
[23] Georgiou, S., Langford, I.H., Bateman I. and Turner R.K. 1998. Determinants of Individual Willingness to Pay for Reductions in Environmental Health Risks: A Case Study of Bathing Water Quality. Environment and Planning A, 30: 577–594.
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[26] Goffe, P. 1995. The benefits of improvements in coastal water quality: a contingent approach. Journal of Environmental Management, 45: 305–317.
[27] Guha D., Mandal S. and Dutta A. 2011. Evaluation of urban lentic water quality using multivariate statistical analysis. Journal of Environmental Management and Tourism, 2: 24- 33.
[28] Guimarães, M.H., Sousa, C., Garcia, T., Dentinho, T. and Boski, T. 2011. The value of improved water quality in Guadiana estuary — a transborder application of contingent valuation methodology. Letters in Spatial and Resource Science, 4: 31–48.
[29] Haab, T.C. and McConnell E.K. 2002. Valuing Environmental and Natural Resources. Edward Elgar: Cheltenham, UK.
[30] Halkos G. 2011. Environmental pollution and economic development: explaining the existence on environmental Kuznets curve. Journal of Applied Economic Sciences, VI 6(18): 148-159.
[31] Halkos, G.E. and Jones N. 2012. Modelling the effect of social factors on improving biodiversity protection. Ecological Economics, 78: 90-99.
[32] Halkos, G.E. and Matsiori, S. 2012a. Determinants of willingness to pay for coastal zone quality improvement. The Journal of Socio-Economics, 41: 391– 399.
[33] Halkos, G.E. and Matsiori, S. 2012b. Assessing the economic value of protecting artificial lakes, MPRA Paper 39557, University Library of Munich, Germany.
[34] Hanley, N., Shogren, J.F. and White, B. 1997. Environmental economics in theory and practice. England: Macmillan.
[35] Hanley, N. and Kristrom B. 2002. What’s it worth? Exploring uncertainty over values using contingent valuation. Discussion papers in Economics no. 19/02, Economics Department, University of Glasgow.
[36] Hanley, N., Bell, D. and Alvarez-Farizo, B. 2003. Valuing the benefits of coastal water quality improvements using contingent and real behavior. Environment and Resource Economics, 24: 273-285.
[37] Hanemann, W.M. 1984. Welfare evaluations in contingent valuation information with discrete responses. American Journal of Agricultural Economics, 66: 332-341.
[38] Hanemann, W.M. 1994. Valuing the environment through contingent valuation. Journal of Economic Perspectives, 8(4): 19-43.
[39] Hanemann, M., Loomis, L. and Kanninen, B. 1991. Statistical Efficiency of Double - Bounded Dichotomous Choice Contingent Valuation. American Journal of Agricultural Economics, 73: 1255-1263.
[40] Hayes, K.M., Tyrrell, T.J. and Anderson, G. 1992. Estimating the benefits of water quality improvements in the upper Narragansett Bay. Marine Resource Economics, 7: 75–85.
[41] Jones, N., Sophoulis C.M. and Malesios C. 2008. Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece. Journal of Socio-Economics, 37: 2478–2491.
[42] Jørgensen, B.S., Syme, G., Bishop, B. and Nancarrow, B. 1999. Protest responses in contingent valuation. Environmental and Resource Economics, 14: 131–150.
[43] Kahneman, D., Knetsch, J.L. 1992. Valuing public goods: The purchase of moral satisfaction. Journal of Environmental Economics and Management, 22: 57–70.
[44] Kontogianni, A., Langford, I.H., Papandreou, A. and Skourtos, M.S. 2003. Social preferences for improving water quality: an economic analysis of benefits from wastewater treatment. Water Ressources Management, 17: 317–336.
[45] Krinsky, I. and Robb, A.L. 1986. On approximating the statistical properties of elasticities. Review of Economics and Statistics, 68: 715-719.
[46] Kriström B. 1990. A non parametric approach to the estimation of welfare measures in discrete response valuation. Land Economics, 66: 135-139.
[47] Lipton, D. 2003. The value of improved water quality to Chesapeake Bay boaters. Working Paper WP 03-16, Department of Agricultural and Resource Economics, University of Maryland, College Park.
[48] Loomis, J. 1990. Comparative reliability of the dichotomous choice and open-ended contingent valuation techniques. Journal of Environmental Economics and Management, 18: 78-85.
[49] Mitchell, R.C. and Carson, R.T. 1989. Using surveys to value public goods: the contingent valuation method. Resources for the Future, Washington, DC.
[50] Nahman, A. and Rigby, D. 2008. Valuing blue flag status and estuarine water quality in Margate, South Africa. South African Journal of Economics, 76(4): 721- 737.
[51] Organtzi, M., Mallios Z. and Latinopoulos, P. 2009. Double bounded contingent valuation of quality improvement in a coastal environment, CEST: Α-1030-1037.
[52] Park, T., Loomis, J.B. and Creel, M. 1991. Confidence intervals for evaluating benefits estimates from dichotomous choice contingent valuation studies. Land Economics, 67(1): 64-73.
[53] Ramajo-Hernandez, J. and Saz-Salazar, S. 2012. Estimating the non-market benefits of water quality improvement for a case study in Spain: A contingent valuation approach. Environmental Science and Policy, 22: 47-59.
[54] Samuelson, P. 1954. The pure theory of public expenditure. Review of Economics and Statistics, 36: 332–338.
[55] Ștefănescu L., Ungureanu, L., Matei V. 2008. Reengineering as an efficient solution to redesign activities and processes of an enterprise. Journal of Applied Economic Sciences, III 2(4): 65-70.
[56] Strazzera, E., Genius, M., Scarpa, R. and Hutchinson, G. 2003. The effect of protest votes on the estimates of WTP for use values of recreational sites. Environmental and Resource Economics, 25: 461–476.
[57] Turnbull, B.W. 1976. The empirical distribution function with arbitrarily grouped, censored and truncated data. Journal of the Royal Statistical Society, Series B, Methodological, 38: 290–295.
[58] Venkatachalam, L. 2004. The contingent valuation method: a review. Environmental Impact Assessment Review, 24: 89–124.
[59] Vossler, C.A., Kerkvliet, J., Polasky, S. and Gainutdinova, O. 2003. Externally validating contingent valuation: an open-space survey and referendum in Corvallis, Oregon. Journal of Economic Behaviour and Organization, 51: 261–277.
[60] Whittington, D. et al. 1992. Giving respondents time to think in contingent valuation studies: a developing country application. Journal of Environmental Economics and Management, 22: 205–225.
[2] An, M.Y. 1996. Semi parametric Estimation of Willingness to Pay Distributions, Department of Economics. Working Paper 96-20. Duke University.
[3] Aprahamian, F., Chanel, O. and Luchini, S. 2007. Modelling starting point bias as unobserved heterogeneity in contingent valuation surveys: an application to air pollution. Journal of Agricultural Economics, 89: 533–547.
[4] Atkins, J.P., Burdon, D. and Allen J.H. 2007. An application of contingent valuation and decision tree analysis to water quality improvements. Marine Pollution Bulletin, 55: 591-602.
[5] Barbu, C. 2008. The effects off the mining activity over the waters from Jiu Valley. Journal of Applied Economic Sciences, III 4(6): 148-159.
[6] Bateman, I.J., Carson, R.T., Day, B., Hanemann, W.M., Hanley, N.D., Hett, T., Jones-Lee, M.W., Loomes, G., Mourato, S., Özdemiroglu, E., Pearce, D.W., Sugden, R. and Swanson, J. 2002. Economic Valuation with Stated Preference Techniques: A Manual. Edward Elgar Publishing, Cheltenham.
[7] Bergsrtom, J.C., Stoll J.R. and Randall, A. 1990. The impact of information on environmental commodity valuation decisions. American Journal of Agricultural Economics, 72: 614–21.
[8] Birol, E., Kountouri, P. and Kountouris, Y. 2007. Farmers’ Demand for Recycled Wastewater in Cyprus: A contingent valuation approach, Environmental Economy and Policy Research, Discussion Paper Series, No. 24, University of Cambridge.
[9] Birol, E., Karousakis, K. and Kountouri, P. 2006. Using economic valuation techniques to inform water resources management: A survey and critical appraisal of available techniques and an application. Science of the Total Environment, 365: 105-122.
[10] Blomquist, G.C. and Whitehead, J.C. 1998. Resource Quality Information and Validity of Willingness to Pay in Contingent Valuation. Resource and Energy Economics, 20: 179–196.
[11] Bockstael, N.E., McConnell, K.E. and Strand, I.E. 1989. Measuring the benefits of improvements in water quality: The Chesapeake Bay. Marine Resource Economics, 6(1): 1–18.
[12] Carson, R.T. and Hanemann, M.W. 2005. Contingent valuation, Handbook of Environmental Economics Maler, K.-G., Vincent, J.R., Elsevier/ North-Holland, New York.
[13] Champ, P.A. and Bishop R.C. 2001. Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias. Environmental and Resource Economics, 19: 383-402.
[14] Chen, H. and Randall A. 1997. Semi-nonparametric estimation of binary response models with an application to natural resource valuation. Journal of Econometrics, 76: 323-340.
[15] Chien, Y.L., Huang, C.J. and Shaw, D. 2005. A general model of starting point bias in double-bounded dichotomous contingent valuation surveys. Journal of Environmental Economics and Management, 50: 362–377.
[16] Ciriacy-Wantrup S.V. 1947. Capital return from soil conservation practices. Journal of Farm Economics, 29: 1188-90.
[17] Creel, M. and Loomis, J. 1997. Semi-nonparametric Distribution-Free Dichot-omous Choice Contingent Valuation. Journal of Environmental Economics and Management, 32: 341-358.
[18] Crooker, J.R. and Herriges, J.A. 2004. Parametric and semi-nonparametric estimation of willingness-to-pay in the dichotomous choice contingent valuation framework. Environmental and Resource Economics, 27: 451–480.
[19] Cummings, R., G., Harrison, G. W. and Rustrom E.E., (1995), Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive Compatible? American Economic Review, 85: 260-266.
[20] Cummings, R.G. and Taylor, L.O. 1999. Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method. American Economic Review, 89: 649-65.
[21] DeShazo, J.R. 2002. Designing transactions without framing effects in iterative question formats. Journal of Environmental Economics and Management, 43: 360–385.
[22] Dupont, D.P. 2003. CVM embedding effects when there are active, potentially active and passive users of environmental goods. Environmental and Resource Economics, 25: 319–341.
[23] Georgiou, S., Langford, I.H., Bateman I. and Turner R.K. 1998. Determinants of Individual Willingness to Pay for Reductions in Environmental Health Risks: A Case Study of Bathing Water Quality. Environment and Planning A, 30: 577–594.
[24] Georgiou, S., Langford, I.H., Bateman I. and Turner R.K. 2000. Coastal Bathing Water Health Risks: Assessing the Adequacy of Proposals to Amend the 1976 EC Directive. Risk, Decision and Policy, 5: 49–68.
[25] Giraud, K.L., Loomis, J.B. and Cooper, J.C. 2001. A Comparison of Willingness to Pay Estimation Techniques from Referendum Questions. Environmental and Resource Economics, 20: 331–346.
[26] Goffe, P. 1995. The benefits of improvements in coastal water quality: a contingent approach. Journal of Environmental Management, 45: 305–317.
[27] Guha D., Mandal S. and Dutta A. 2011. Evaluation of urban lentic water quality using multivariate statistical analysis. Journal of Environmental Management and Tourism, 2: 24- 33.
[28] Guimarães, M.H., Sousa, C., Garcia, T., Dentinho, T. and Boski, T. 2011. The value of improved water quality in Guadiana estuary — a transborder application of contingent valuation methodology. Letters in Spatial and Resource Science, 4: 31–48.
[29] Haab, T.C. and McConnell E.K. 2002. Valuing Environmental and Natural Resources. Edward Elgar: Cheltenham, UK.
[30] Halkos G. 2011. Environmental pollution and economic development: explaining the existence on environmental Kuznets curve. Journal of Applied Economic Sciences, VI 6(18): 148-159.
[31] Halkos, G.E. and Jones N. 2012. Modelling the effect of social factors on improving biodiversity protection. Ecological Economics, 78: 90-99.
[32] Halkos, G.E. and Matsiori, S. 2012a. Determinants of willingness to pay for coastal zone quality improvement. The Journal of Socio-Economics, 41: 391– 399.
[33] Halkos, G.E. and Matsiori, S. 2012b. Assessing the economic value of protecting artificial lakes, MPRA Paper 39557, University Library of Munich, Germany.
[34] Hanley, N., Shogren, J.F. and White, B. 1997. Environmental economics in theory and practice. England: Macmillan.
[35] Hanley, N. and Kristrom B. 2002. What’s it worth? Exploring uncertainty over values using contingent valuation. Discussion papers in Economics no. 19/02, Economics Department, University of Glasgow.
[36] Hanley, N., Bell, D. and Alvarez-Farizo, B. 2003. Valuing the benefits of coastal water quality improvements using contingent and real behavior. Environment and Resource Economics, 24: 273-285.
[37] Hanemann, W.M. 1984. Welfare evaluations in contingent valuation information with discrete responses. American Journal of Agricultural Economics, 66: 332-341.
[38] Hanemann, W.M. 1994. Valuing the environment through contingent valuation. Journal of Economic Perspectives, 8(4): 19-43.
[39] Hanemann, M., Loomis, L. and Kanninen, B. 1991. Statistical Efficiency of Double - Bounded Dichotomous Choice Contingent Valuation. American Journal of Agricultural Economics, 73: 1255-1263.
[40] Hayes, K.M., Tyrrell, T.J. and Anderson, G. 1992. Estimating the benefits of water quality improvements in the upper Narragansett Bay. Marine Resource Economics, 7: 75–85.
[41] Jones, N., Sophoulis C.M. and Malesios C. 2008. Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece. Journal of Socio-Economics, 37: 2478–2491.
[42] Jørgensen, B.S., Syme, G., Bishop, B. and Nancarrow, B. 1999. Protest responses in contingent valuation. Environmental and Resource Economics, 14: 131–150.
[43] Kahneman, D., Knetsch, J.L. 1992. Valuing public goods: The purchase of moral satisfaction. Journal of Environmental Economics and Management, 22: 57–70.
[44] Kontogianni, A., Langford, I.H., Papandreou, A. and Skourtos, M.S. 2003. Social preferences for improving water quality: an economic analysis of benefits from wastewater treatment. Water Ressources Management, 17: 317–336.
[45] Krinsky, I. and Robb, A.L. 1986. On approximating the statistical properties of elasticities. Review of Economics and Statistics, 68: 715-719.
[46] Kriström B. 1990. A non parametric approach to the estimation of welfare measures in discrete response valuation. Land Economics, 66: 135-139.
[47] Lipton, D. 2003. The value of improved water quality to Chesapeake Bay boaters. Working Paper WP 03-16, Department of Agricultural and Resource Economics, University of Maryland, College Park.
[48] Loomis, J. 1990. Comparative reliability of the dichotomous choice and open-ended contingent valuation techniques. Journal of Environmental Economics and Management, 18: 78-85.
[49] Mitchell, R.C. and Carson, R.T. 1989. Using surveys to value public goods: the contingent valuation method. Resources for the Future, Washington, DC.
[50] Nahman, A. and Rigby, D. 2008. Valuing blue flag status and estuarine water quality in Margate, South Africa. South African Journal of Economics, 76(4): 721- 737.
[51] Organtzi, M., Mallios Z. and Latinopoulos, P. 2009. Double bounded contingent valuation of quality improvement in a coastal environment, CEST: Α-1030-1037.
[52] Park, T., Loomis, J.B. and Creel, M. 1991. Confidence intervals for evaluating benefits estimates from dichotomous choice contingent valuation studies. Land Economics, 67(1): 64-73.
[53] Ramajo-Hernandez, J. and Saz-Salazar, S. 2012. Estimating the non-market benefits of water quality improvement for a case study in Spain: A contingent valuation approach. Environmental Science and Policy, 22: 47-59.
[54] Samuelson, P. 1954. The pure theory of public expenditure. Review of Economics and Statistics, 36: 332–338.
[55] Ștefănescu L., Ungureanu, L., Matei V. 2008. Reengineering as an efficient solution to redesign activities and processes of an enterprise. Journal of Applied Economic Sciences, III 2(4): 65-70.
[56] Strazzera, E., Genius, M., Scarpa, R. and Hutchinson, G. 2003. The effect of protest votes on the estimates of WTP for use values of recreational sites. Environmental and Resource Economics, 25: 461–476.
[57] Turnbull, B.W. 1976. The empirical distribution function with arbitrarily grouped, censored and truncated data. Journal of the Royal Statistical Society, Series B, Methodological, 38: 290–295.
[58] Venkatachalam, L. 2004. The contingent valuation method: a review. Environmental Impact Assessment Review, 24: 89–124.
[59] Vossler, C.A., Kerkvliet, J., Polasky, S. and Gainutdinova, O. 2003. Externally validating contingent valuation: an open-space survey and referendum in Corvallis, Oregon. Journal of Economic Behaviour and Organization, 51: 261–277.
[60] Whittington, D. et al. 1992. Giving respondents time to think in contingent valuation studies: a developing country application. Journal of Environmental Economics and Management, 22: 205–225.
Published
2016-11-11
How to Cite
HALKOS, George E.; GALANI, Georgia K..
ECONOMIC FOUNDATIONS ΤΟ ASSESS NON-MARKET VALUES IN MARINE AND COASTAL ECOSYSTEMS’ WATER QUALITY.
Journal of Environmental Management and Tourism, [S.l.], v. 4, n. 1, p. 5-20, nov. 2016.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/385>. Date accessed: 20 apr. 2024.
Section
Journal of Environmental Management and Tourism
Keywords
contingent valuation; willingness to pay or to accept (WTP/WTA); marine and coastal ecosystems
Copyright© 2023 The Author(s). Published by ASERS Publishing 2023. This is an open access article distributed under the terms of CC-BY 4.0 license.