Daniel W. McCollum

Which response format reveals the truth about donations to a public good

Several contingent valuation studies have found that the open-ended format yields lower estimates of willingness to pay (WTP) than does the closed-ended, or dichotomous choice, format. In this study, WTP for a public environmental good was estimated under four conditions: actual payment in response to open-ended and closed-ended requests, and hypothetical payment in response to open-ended and closed-ended requests. The experimental results, showing that the response format mattered far more for hypothetical than for actual payments, support conclusions about the reasons that the dichotomous choice format yields larger estimates of hypothetical WTP, conclusions that hinge on the hypothetical nature of contingent valuation.

Valuing Public Goods: Discrete versus Continuous Contingent-Valuation Responses

Independent applications of open-ended and dichotomous-choice formats are compared using tests of means, estimating joint likelihood functions and nonparametric tests of distributions. The null hypothesis of no difference in the open-ended and dichotomous-choice estimates of central tendency cannot be rejected for two out of three data sets, while estimated standard deviations are significantly different for all three data sets. In addition, actual dichotomous-choice means and standard deviations exceed those from comparable synthetic dichotomous-choice data sets, suggesting either open-ended questions underestimate values or dichotomous-choice bid structures may lead to systematic overestimates.

Test-Retest Reliability of Contingent Valuation with Independent Sample Pretest and Posttest Control Groups

Test-retest, the standard method used to investigate reliability of contingent valuation, is limited because when the time period between the two surveys is relatively short the study may exhibit testing recall. Conversely, when the time between the two surveys increases there is an increased chance the true value will change. The test-retest design cannot isolate these effects. Independent pretest and posttest control groups allow testing of reliability even when recall occurs or the true value changes. Using this design, we found ex post estimates of Hicksian surplus are reliable regardless of whether respondents have direct experience with an activity.

An Integrated Social, Economic, and Ecologic Conceptual (ISEEC) framework for considering rangeland sustainability

Currently, there is no standard method to assess the complex systems in rangeland ecosystems. Decision makers need baselines to create a common language of current rangeland conditions and standards for continued rangeland assessment. The Sustainable Rangeland Roundtable (SRR), a group of private and public organizations and agencies, has created a forum to discuss rangeland sustainability and assessment. The SRR has worked to integrate social, economic, and ecological disciplines related to rangelands and has identified a standard set of indicators that can be used to assess rangeland sustainability. As part of this process, SRR has developed a two-tiered conceptual framework from a systems perspective to study the validity of indicators and the relationships among them. The first tier categorizes rangeland characteristics into four states. The second tier defines processes affecting these states through time and space. The framework clearly shows that the processes affect and are affected by each other.

Intra-Regional Amenities, Wages, and Home Prices: The Role of Forests in the Southwest

Forests provide non-market goods and services that people are implicitly willing to pay for through hedonic housing and labor markets. But it is unclear if compensating differentials arise in these markets at the regional level. This empirical question is addressed in a study of Arizona and New Mexico. Hedonic regressions of housing prices and wages using census and geographic data show that forest area carries an implicit price of between

Framework for Comparing Ecosystem Impacts of Developing Unconventional Energy Resources on Western US Rangelands

27 and

Measuring Non-Use Values: Theory and Empirical Applications

36 per square mile annually. Compensating differentials at the regional level suggest that care must be taken when applying the travel cost method to value regionally delineated characteristics. (JEL Q23, R14)

Climate change effects on rangelands and rangeland management: affirming the need for monitoring

Abstract More diverse sources of energy are needed for countries to progress toward energy independence and to meet future food production needs. The US Task Force on Strategic Unconventional Fuels concluded that to achieve this objective it is essential to develop a domestic unconventional fuels industry. Rangelands, which cover 50% to 70% of the earths terrestrial surface and dominate much of the western half of the United States, represent a major source of alternative energy resources. A framework to systematically identify biophysical-socioeconomic links that influence the delivery of ecosystem services affected by alternative uses of rangelands has been lacking. The Integrated Social, Economic, and Ecological Conceptual framework was developed by the Sustainable Rangeland Roundtable to address this deficiency. We apply this framework to demonstrate how the effect on ecosystem services of exploiting rangeland-based biofuel, natural gas, and wind energy resources can be systematically compared. We also demonstrate the use of this framework for selecting suitable indicators to monitor changes in the biophysical-socioeconomic links affected by the development of these unconventional energy sources. This type of approach can potentially enhance coordination between federal, state, and local agencies that are attempting to set polices and regulations for the sustainable development of unconventional energy resources on rangelands. Resumen Más diversidad de fuentes de energía es necesaria para que los países progresen hacia la independencia energética y cumplan con sus necesidades futuras de alimentación. El grupo estratégico para combustibles no-convencionales de los EUA concluyó que para lograr el éste objetivo, es esencial desarrollar una industria de combustibles no-convencionales interna. Los pastizales, quienes cubren entre el 50 al 70% de la superficie del planeta y dominan más de la mitad del oeste de EUA representan la mayor fuente de recursos de energía alternativa. Hace falta desarrollar un marco conceptual que sistemáticamente identifique los enlaces biofísicos-socioeconómicos que influyen en la entrega de los servicios de los ecosistemas que son afectados por los usos alternativos de los pastizales. El Marco Conceptual de Integración Social, Económica y Ecológica desarrollado por la Mesa de Sostenibilidad de los Pastizales está dirigido para atender esta deficiencia. Aplicamos este marco conceptual para demostrar como el efecto en los servicios del ecosistema por la explotación de biocombustibles basados en los pastizales, gas natural y fuentes de energía eólica pueden ser comparados sistemáticamente. También demostramos que el uso de este marco conceptual para seleccionar indicadores adecuados para monitorear cambios en los enlaces biofísicos-socioeconómicos afectados por el desarrollo de estas fuentes de energía no convencionales. Este tipo de punto de vista puede potencialmente enriquecer la coordinación entre las agencias federales, estatales y locales que están intentando establecer políticas y regulaciones en el desarrollo sostenible de fuentes de energía no convencional en pastizales.

Nonmarket Valuation in Action

In keeping with our assignment, this paper will focus on measurement. We will devote far less time to the microeconomic theory of non-use values than many readers might expect. Non-use values are now well entrenched in the theory of the consumer (Krutilla 1967; Randall and Stoll 1983; Madariaga and McConnell 1987; Boyle and Bishop 1987; Smith 1987; Bishop and Welsh 1992; Freeman 1993). We shall want to briefly review the theory as a foundation for what will follow, but need not dwell on it at length. The central focus will instead be on measurement.

Reflections on Validity and the Italian Experience with Contingent Valuation

Abstract Uncertainty as to the extent and magnitude of changes in conditions that might occur due to climate change poses a problem for land and resource managers as they seek to adapt to changes and mitigate effects of climate variability. We illustrate using scenarios of projected future conditions on rangelands in the Northern Great Plains and Desert Southwest of the United States. These two regions are different in the ways climate change is projected to affect the regions. Projection of a longer and warmer growing season in the Northern Great Plains could lead to increased forage production and land productivity. Highly uncertain effects on summer monsoons that primarily control rangeland productivity in the Desert Southwest, combined with the possibility of more intense and/or frequent drought events, could present land managers with challenges stemming from decreased forage production and land productivity. Climate projections, though uncertain, provide land managers with basic insight into future conditions they might encounter. They need more. A focus on vulnerability and resilience, with explicit recognition of interactions between ecological and socio‐economic factors, coupled with systematic monitoring and assessment of observable conditions on the land to supplement information based on climate projections, will more effectively provide critical and specific information managers need to adaptively manage rangelands under uncertain climate futures.