Bruce E. Lindsay

Use of the tobit model in contingent valuation: Experimental evidence from the Pemigewasset Wilderness Area

Two statistical techniques commonly used in contingent valuation studies—ordinary least squares estimation and Tobit analysis—are compared using the data obtained from a 1989 survey of users of the Pemigewasset Wilderness Area in New Hampshire. Parameter estimates are contrasted for differences insign, size and significance. An examination of zero bids is also conducted, and inferences are drawn as to which analytical technique is preferred. Results indicate that coefficient values estimated using Tobit analysis may differ substantially from those estimated using OLS. In addition, the direction of this difference in coefficient values is not consistent. Since Tobit analysis is the more theoretically correct method for willingness-to-pay (WTP) data sets with large numbers of zero bids, past research conduced using least squares analysis may have provided incorrect estimates of coefficients for explanatory variables. Tobit also allows decomposition of the data set to examine more closely the effects of the independent variables on current non-zero WTP bidders, and estimates the probability of zero bidders changing to positive bids based on changes in the independent varaibles. However, extra care must be taken in culling protest bids from the sample. Results of this study indicate that users of the Pemigewasset Wilderness Area are willing to pay between

Factors Influencing the Willingness to Pay for Coastal Beach Protection

4·82 and

Factors influencing resident attitudes regarding the land application of biosolids

5·65 per trip to the area. Variables which tend to affect these bids most strongly are the probability of returning to the area and the importance of a primitive camping experience.

Influences on individual initiative to use gypsy moth control in New Hampshire, USA

Abstract This study examines coastal beach visitors ‘ willingness to pay for a beach erosion control program. A Tobit model was developed utilizing survey data obtained from recreational beach users at Maine and New Hampshire beaches. The number of years visiting a particular beach, income level, familiarity with beach protective laws, respondents’ state of residence, and the presence of sand dunes were found to be statistically significant in influencing a beach users’ willingness to pay for coastal beach protection. The implications of these findings for beach erosion control programs are discussed.

NEW HAMPSHIRE WATER LAW: AN INTERPRETIVE OVERVIEW

Residential household owners were surveyed in two different New Hampshire communities that varied in terms of population size, degree of rurality, and per capita income, each with no activities in land application of biosolids. Logit models were developed and logistic regression analyses were carried out for each community. The empirical results suggest that the perception by residents of the potential economic benefits and negative impacts from land application of biosolids can be very influential in achieving public acceptance. From a policymakers viewpoint, this suggests the need for sound educational programs that explicitly describe the economic benefits, negative impacts, and potential risks that typically occur with land application of biosolids. Supportive studies are needed to complement the educational programs. These measures will allow residents to weigh the relative benefits and costs to determine their positions on this approach to management of biosolids and to discount emotional judgements and misinformation. The media needs to ensure that newspaper, magazine, and television reports are accurate and taken from reliable sources. Survey results suggest that the less volume of information presented by the media, the more supportive residents are of land application. Therefore, with such sensitivity by respondents to quantity of information, it is imperative that media outlets place high priority on the quality and accuracy of materials presented. Socioeconomic characteristics of the respondents did not influence attitudes toward acceptance or rejection of biosolids application, thus eliminating the difficulty that social stratification could cause in achieving acceptance.

The willingness to pay for groundwater protection

Socioeconomic, demographic, and attitudinal factors likely to influence individual initiative to use control measures against gypsy moth infestation in New Hampshire are examined. Data were acquired through a mail survey from 629 individuals in three targeted towns: Bow, Conway, and Exeter. Using logit regression analysis, numerous variables are shown to be statistically significant in influencing an individuals willingness to use control measures. The influencing factors include: the individual knowing the difference between the gypsy moth caterpillar and the eastern tent caterpillar; the individual being a homeowner rather than a renter; the number of acres of land accompanying the individuals dwelling; the number of trees on the individuals property; the individuals gender; and the individuals level of income. Aesthetic damage and the nuisance caused by gypsy moth infestation were the primary reasons for individuals to use control measures. The results from this study indicate that the motivation behind an individuals initiative to use control measures is influenced by diverse and varying factors. The models, methodology, and results as applied and presented here are exploratory in nature, yet could prove informative for researchers seeking a greater understanding of the interaction between humans and insect pests.

Willingness To Pay for a State Gypsy Moth Control Program in New Hampshire: A Contingent Valuation Case Study

ABSTRACT: New Hampshires riparian water law, first modified judicially, has been more drastically changed by recent legislative and administrative action. As it stands, however, the judicially enforced doctrine of reasonable use appears to be utterly inadequate to handle increasing water demands. The protection of the public interest has imposed substantial limitations on the use of riparian water rights, all under the guise of the exercise of the police power, i.e., the protection of the public health, safety, and welfare. The efficient use of the states water resources has been further crippled by the widespread and indiscriminate exercise of eminent domain. As a result, the state is now considering the imposition of a permit system that has the potential to streamline the allocation of water. Such a system should take into consideration the public interest factors that have recently frustrated the exercise of riparian rights and the effective use of the states water resources.