Brett Day

Economic Valuation with Stated Preference Techniques

This manual offers a detailed, up-to-date explanation of how to carry out economic valuation using stated preference techniques. It is relevant for the application of these techniques to all non-market goods and services including air and water quality; provision of public open space; health care that is not sold through private markets; risk reduction policies and investments not provided privately; provision of information as with the recorded heritage, the protection of cultural assets and so on. The resulting valuations can be used for a number of purposes including, but not limited to, demonstrating the importance of a good or service; cost–benefit analysis; setting priorities for environmental policy; design of economic instruments; green national/corporate accounting, and natural resource damage assessment.

Bringing Ecosystem Services into Economic Decision-Making: Land Use in the United Kingdom

Monitoring Land Use Land-use decisions are based largely on agricultural market values. However, such decisions can lead to losses of ecosystem services, such as the provision of wildlife habitat or recreational space, the magnitude of which may overwhelm any market agricultural benefits. In a research project forming part of the UK National Ecosystem Assessment, Bateman et al. (p. 45) estimate the value of these net losses. Policies that recognize the diversity and complexity of the natural environment can target changes to different areas so as to radically improve land use in terms of agriculture and greenhouse gas emissions, recreation, and wild species habitat and diversity. The value of using land for recreation and wildlife, not just for agriculture, can usefully factor into planning decisions. Landscapes generate a wide range of valuable ecosystem services, yet land-use decisions often ignore the value of these services. Using the example of the United Kingdom, we show the significance of land-use change not only for agricultural production but also for emissions and sequestration of greenhouse gases, open-access recreational visits, urban green space, and wild-species diversity. We use spatially explicit models in conjunction with valuation methods to estimate comparable economic values for these services, taking account of climate change impacts. We show that, although decisions that focus solely on agriculture reduce overall ecosystem service values, highly significant value increases can be obtained from targeted planning by incorporating all potential services and their values and that this approach also conserves wild-species diversity.

Bringing ecosystem services into economic decision-making

Monitoring Land Use Land-use decisions are based largely on agricultural market values. However, such decisions can lead to losses of ecosystem services, such as the provision of wildlife habitat or recreational space, the magnitude of which may overwhelm any market agricultural benefits. In a research project forming part of the UK National Ecosystem Assessment, Bateman et al. (p. 45) estimate the value of these net losses. Policies that recognize the diversity and complexity of the natural environment can target changes to different areas so as to radically improve land use in terms of agriculture and greenhouse gas emissions, recreation, and wild species habitat and diversity. The value of using land for recreation and wildlife, not just for agriculture, can usefully factor into planning decisions. Landscapes generate a wide range of valuable ecosystem services, yet land-use decisions often ignore the value of these services. Using the example of the United Kingdom, we show the significance of land-use change not only for agricultural production but also for emissions and sequestration of greenhouse gases, open-access recreational visits, urban green space, and wild-species diversity. We use spatially explicit models in conjunction with valuation methods to estimate comparable economic values for these services, taking account of climate change impacts. We show that, although decisions that focus solely on agriculture reduce overall ecosystem service values, highly significant value increases can be obtained from targeted planning by incorporating all potential services and their values and that this approach also conserves wild-species diversity.

Applying geographical information systems (GIS) to environmental and resource economics

Many of the analyses undertaken byenvironmental and resource economics areintimately concerned with spatial variations.This article examines the contribution whichGeographical Information Systems (GIS) mayprovide in incorporating the complexities ofthe spatial dimension within such analyses. Thepaper introduces the reader to the types ofdata handled by a GIS and overviews thepractical functionality offered by suchsystems. A brief literature review issupplemented by a number of more detailedapplications illustrating various GIStechniques which may be of use to the appliedenvironmental or resource economist.

Using GIS and large-scale digital data to implement hedonic pricing studies

This paper describes how a standard GIS package can be used to convert large-scale vector digital data (point, line and annotation features) into polygons using standardised and replicable methods. Building area, garden and land use polygons are all derived from such data (Ordnance Survey LandLine.Plus). These entities are then combined with further sources of digital data to derive more refined information such as property types. Finally, complex DEMs are developed for use in visibility studies. The variables calculated are subsequently employed in a property valuation study where many are found to be significant determinants of property price. The main exception is variables relating to viewsheds, although it is argued that this does not invalidate the techniques used in their deviation but highlights the difficulties involved in modelling a large number of variables in a property price analysis.

The Market Triumph of Ecotourism: An Economic Investigation of the Private and Social Benefits of Competing Land Uses in the Peruvian Amazon

Annual revenue flow to developing countries for ecotourism (or nature-based tourism) could be as large as US

Closing the ecotourism-conservation loop in the Peruvian Amazon

210×1012, providing an enormous financial incentive against habitat loss and exploitation. However, is ecotourism the most privately and/or socially valuable use of rainforest land? The question is rarely answered because the relevant data, estimates of profits and fixed costs, are rarely available. We present a social cost-benefit analysis of land use in an ecotourism cluster in the Tambopata region of Amazonian Peru. The net present value of ecotourism-controlled land is given by the producer surplus (profits plus fixed costs of ecotourism lodges): US

Improving land compensation procedures via GIS and hedonic pricing

1,158 ha−1, which is higher than all currently practiced alternatives, including unsustainable logging, ranching, and agriculture. To our knowledge, this is the first sector-wide study of profitability and producer surplus in a developing-country ecotourism sector and the first to compare against equivalent measures for a spectrum of alternative uses. We also find that ecotourism-controlled land sequesters between 5.3 to 8.7 million tons of above-ground carbon, which is equivalent to between 3000–5000 years of carbon emissions from the domestic component of air and surface travel between the gateway city of Cusco and the lodges, at 2005 emission rates. Ecotourism in Tambopata has successfully monetized the hedonic value of wild nature in Amazonian Peru, and justifies the maintenance of intact rainforest over all alternative uses on narrow economic grounds alone.

'Amenity' or 'eyesore'? Negative willingness to pay for options to replace electricity transmission towers

Annual revenue flow to developing countries for ecotourism could be as large as US

Introducing Willingness‐to‐pay for Noise Changes into Transport Appraisal: An Application of Benefit Transfer

29 billion, providing an enormous financial incentive against habitat loss and exploitation. However, surprisingly little quantitative evidence exists on the profitability of the rainforest ecotourism sector, which determines the incentive and capacity of the sector to engage in conservation. A Peruvian rainforest ecotourism cluster generated US