Giovanni Signorello

One-and-One-Half Bound Dichotomous Choice Contingent Valuation

Although the double-bound (DB) format for the discrete choice contingent valuation method (CVM) has the benefit of higher efficiency in welfare benefit estimates than the single-bound (SB) discrete choice CVM, it has been subject to criticism due to evidence that some of the responses to the second bid may be inconsistent with the responses to the first bid. As a means to reduce the potential for response bias on the follow-up bid in multiple-bound discrete choice formats such as the DB model while maintaining much of the efficiency gains of the multiple-bound approach, we introduce the one-and-one-half-bound (OOHB) approach and present a real-world application. In a laboratory setting, despite the fact that the OOHB model uses less information than the DB approach, the efficiency gains in moving from SB to OOHB capture a large portion of the gain associated with moving from SB to DB. Utilizing distribution-free seminonparametric estimation techniques on a split-survey data set, our OOHB estimates demonstrated higher consistency with respect to the follow-up data than the DB estimates and were more efficient as well. Hence, OOHB may serve as a viable alternative to the DB format in situations where follow-up response bias may be a concern.

Domestic animal biodiversity conservation: a case study of rural development plans in the European Union

Abstract In this paper we examine the content of farm animal biodiversity conservation measures currently under implementation in the European Union (EU), as a result of the application of EC Regulations 1257/99 and 1750/99. We surveyed 69 Rural Development Plans (RDPs) set up in EU Member States. Our analysis focuses on six livestock mammalian species: asses, cattle, goats, horses, pigs, and sheep The starting point for our investigation is the Domestic Animals Diversity-Information System (DAD-IS) FAO database which monitors the status of breeds in the world. We compare breeds included in the DAD-IS FAO database with breeds covered by the various RDPs. The analysis highlights that many breeds at risk of extinction according the FAO are not included in the RDPs. The analysis also indicates that the main efforts of the RDPs are devoted to preserving local cattle and sheep breeds. As concerns the financial aspects of livestock biodiversity measures, we note that the payments offered to farmers do not take into account the different probabilities of extinction associated with each breed in each country. Furthermore, we observe that payments do not meet all of the relevant criteria stated in the EEC Regulations. In many cases, we observe that, in spite of the Unions support to farmers, it still remains unprofitable to rear local breeds. These anomalies suggest the need for a revision of the current EU supporting measures related to the conservation of livestock biodiversity. Finally, by using FAO indicators on the current population size of each breed, we estimate the level of expected public expenditure necessary to ensure the upgrading of breeds from their ‘at-risk’ status to a ‘not-at-risk’ status during the period 2000–2006.

Farmer Premiums for the Voluntary Adoption of Conservation Plans

Programs that reimburse farmers for the cost of implementing more environmentally benign management practices are becoming increasingly popular in both the US and the EU. Utilizing the random utility and random profit difference approaches, the paper develops a theoretical model that explains why farmers may require a premium in excess of the decrease in profits to adopt a conservation plan, and may even require a premium in the case where adoption of the plan is associated with a mean increase in profits. This premium is estimated using a survey of farmers in conjunction with predictions of changes in production costs.

Valuing Birdwatching in a Mediterranean Wetland

Environmental economists make continuous attempts at improving the theoretical framework and the empirical estimates of total economic value of wetlands (e.g. Batie and Shabman, 1982; Farber, 1987; Farber and Costanza, 1987; Costanza, Farber, and Maxwell, 1989; Bergstrom et al., 1990; Anderson and Rockel, 1991; Whitehead and Blomquist, 1991; Bockstael and Strand, 1993; Gren and Soderqvist, 1994; Unsworth and Bishop, 1995; Kosz, 1996). A robust economic valuation of wetlands can be usedi)to support effective public investments for their preservation, restoration and enhancement; ii) to provide policy makers, land-use planners, and natural resource managers with useful information to ensure a wise use of these biologically important and extremely fragile habitats; and iii) to claim adequate compensation for public environmental damage in the legal process.

Measuring the effect of climate change on agriculture: A literature review of analytical models

This article provides a short overview of the principal models that can be used to estimate the effects of climate change on agriculture. The models are classified in relation to the following criteria: the specific impacts they aim to assess, their ability to measure production and/or economic losses, and the adoption of social indicators of the effects and responses. The weaknesses and strengths of the models are also identified and discussed. The most relevant factors for the choice of the most appropriate model are analysed. Through a comparative analysis of the literature, an easily adoptable scheme for selecting the most appropriate method to estimate the effects of climate change according to the characteristics of the case study is identified. The adopted classification scheme demonstrates that one model is capable of simultaneously considering many aspects related to climate change and classifying these in different class.

Mining Social Images to Analyze Routing Preferences in Tourist Areas

Social media platforms provide a useful source of data for environmental planning. In the last years these data have been exploited to perform social behaviour analysis. This work uses the huge amount of georeferenced images publicly available on social media as a source of information to infer the behaviour of tourists. Visual analytic mapping tools combined with the Parzen-Rosenblatt non-parametric kernel density estimation give us visual clues to assess the attractiveness of tourist geographical areas. To investigate the preferred combinations of locations visited by the tourists within a time window of few days we propose to mine association rules using the Apriori algorithm. A prototype of an integrated system to visually perform the suggested analysis has been realized and the paper reports about some of case studies performed with it.

The Ricardian analysis twenty years after the original model: Evolution, unresolved issues and empirical problems

This paper analyses the wide body of literature that concerns applications of the Ricardian approach to assess the economic effects of climate change on agriculture. Beginning with the original model proposed by Mendelsohn, Nordhaus and Shaw in 1994, the article discusses researchers’ main criticisms of the model and the innovations suggested to overcome its limitations. Finally, the study summarises the unresolved issues and empirical problems that need to be examined in future research. New issues to be explored include the capture of future technologies, implementation of price changes, choice of the best variables to represent climate, simulation of seasonal effects and identification of the best technique to hypothesise the relationship between profits and climate. The paper also discusses operative problems, such as the availability of the most suitable data, the adoption of spatialisation techniques and the enlargement of the time horizon to be covered. Key words: Climate change, economic effects, agriculture, Ricardian analysis.

Applying the Kuhn--Tucker model to estimate the value of recreational ecosystem services in Sicily

This paper applies the Kuhn–Tucker model to estimate recreation demand of parks in Sicily. We estimate a fixed coefficient specification and a random coefficient specification to take into account heterogeneity across visitors. Estimates suggest a diversity of preferences across the population and that parks with higher level of quality attributes are more likely to be visited. We also simulate two sets of hypothetical policy scenarios to evaluate and compare the recreational value of each park and the welfare impacts of changes in a quality attribute.

Loving Cultural Heritage. Private Individual Giving and Prosocial Behavior

The aim of this paper is to analyse patterns of private individual giving to Cultural Heritage institutions in Italy. Based on the emerging economic literature on pro-social behavior, we carried out a Contingent Valuation survey to assess individuals’ willingness to donate to museums and heritage organizations according to different conditions and set of incentives. Our findings reveal that intrinsic motivations and accountability of the recipient institutions may be more effective drivers for eliciting charitable giving than the usually proposed fiscal incentives. The results provide avenues for future empirical research and policy suggestions for fund raising cultural institutions.

La Contingent Ranking nella stima dei beni pubblici

Per poter elaborare ed attuare politiche tese alla promozione dello sviluppo sostenibile e necessario disporre di adeguate misurazioni monetarie del valore dei beni e dei servizi pubblici oggetto di regolamentazione e produzione. In letteratura esistono molteplici metodologie di stima delle risorse senza mercato. Tra queste, la piu applicata e diffusa e la valutazione contingente in quanto dotata di ampia flessibilita operativa (anche rispetto al contesto culturale e socio-economico) e idonea alla stima sia dei valori d’uso attivi che dei valori d‘uso passivi (valori di esistenza). La valutazione contingente, almeno per come si e evoluta e consolidata nella prassi, prevedeche l’intervistatoesprima direttamente (schemi di licitazione: open-ended, bidding game, payment card) o indirettamente (schema di elicitazione: dickotonzoiis choice) il valore della sua ”disponibilita a pagare” in rapporto ad un’unica proposta di variazione del bene pubblico oggetto di stima (Mitchell e Carson, 1989). Questa ipotesi puo talvolta risultare restrittiva in quanto si possono verificare circostanze in cui per lo stesso bene pubblico sono possibili differenti livelli di offerta, oppure situazioni in cui la stima concerne un bene pubblico complesso la cui offerta puo essere modulata secondo combinazioni variabili nelle caratteristiche che lo compongono. Oppure ancora, puo anche capitare che l’interesse del committente sia rivolto non tanto alla conoscenza del valore del bene pubblico in se quanto alla determinazione del valore dei singoli attributi e dei relativi tradeofs. Sebbene sia ancora possibile anche in questi casi ricorrere con opportuni e complessi disegni statistici alla valutazione contingente strutturata nelle versioni per cosi dire tradizionali, il considerevole aggravi0 dei costi di esecuzione delle indagini campionarie e, cio che piu conta, la probabilita di produrre delle stime distorte (mental account bias,