Salvador del Saz-Salazar

Willingness to Pay for Environmental Improvements in a Large City Evidence from The Spike Model and From a Non-Parametric Approach

In this paper, the Contingent Valuation Method (CVM) is applied in order toestimate the social benefits of a set of environmental and urbanimprovements planned for the waterfront of the City of Valencia (Spain) asa consequence of the expansion and restructuring of its trading port. Asthe data show a high rate of zero responses, we applied the Spike model,one of the most recent models in CVM literature, since traditional models(Logit and Probit) are not suitable, given the characteristics of our data.The non-parametric approach is also applied in order to test the validity ofthe Spike model. The results show certain similarities between the Spikemodel and the non-parametric approach.

The Nonmarket Benefits of Redeveloping Dockland Areas for Recreational Purposes: The Case of Castellón, Spain

As a consequence of the decline of central harbour sites and the relocation of port activities to the outskirts of cities, today waterfront redevelopment has become a key issue in the urban revitalisation policies of port cities. Although we are aware that city-port regeneration has strong links with the real estate market, our purpose here is very different. In particular, the contingent valuation method (CVM) has been applied in order to obtain the nonmarket benefits of the environmental and urban improvements derived from redeveloping some port-related areas for recreational and leisure purposes in the city of Castellón, Spain. To date, no previous study has attempted to apply this method to this policy issue. The result is that CVM provides useful information in this context, however, like any methodology, it has its limitations and it cannot provide a definitive answer to this policy issue. Finally, the estimated benefits are compared with the costs of the provision of such recreational and leisure facilities within a cost–benefit analysis framework, and the main finding is that benefits can plausibly exceed costs.

Managing Water Resources Under Conditions of Scarcity: On Consumers’ Willingness to Pay for Improving Water Supply Infrastructure

Conservation and efficient management of water resources is an essential ingredient for achieving sustainable development. River basins in Southern Europe are suffering from high water stress, while leakages in some areas far surpass recommended levels. This study uses the contingent valuation method in order to assess willingness to pay (WTP) by consumers in the Guadalquivir River basin in Spain for improving urban water supply infrastructure and reducing leakages. On average, individuals would be willing to pay an extra charge on their water bill ranging from €8.23 to €9.65. In addition to the expected positive effect of income on WTP, respondents with negative perceptions of their drinking water quality as well as those most affected by the economic crisis have a lower WTP. Conversely, WTP is higher for men and respondents showing greater commitment to the environment. These results provide policymakers with information that might help them to improve water-pricing policies in a context of severe water scarcity, especially considering the principle of cost recovery introduced by the EU Water Framework Directive in pricing water services.

Estimating willingness to pay for desalinated seawater: the case of Djerba Island, Tunisia

Abstract Water scarcity can be a growth-limiting factor. Non-conventional water resources, such as desalinated water, represent an alternative means of guaranteeing access to water while reducing water stress. In this study, a contingent valuation survey carried out in Djerba Island, Tunisia, allows the joint modelling of two decisions: societal support for the construction of a desalination plant and households’ willingness to pay for desalinated water. To the best of the authors’ knowledge, no study to date has addressed this relationship. We find that although a clear majority of households are in favour of using desalinated water, far fewer are willing to pay for it. The article concludes that it is worth studying willingness to pay for desalinated water in developing countries in order to avoid investing in projects where it is doubtful that costs will be recouped.

Port expansion and negative externalities: a willingness to accept approach

Port expansion has been seen as the origin of negative externalities, affecting local residents’ well-being and contributing to the poor public image of ports. In this study, the contingent valuation method is used to estimate the costs borne by local residents as a consequence of the negative externalities derived from the growth of the Port of Valencia (Spain) in the last 30 years. As transport project appraisal has become more complex, this technique complements existing methodologies in this field, such as the social cost benefit analysis and the multicriteria analysis. Given the perceived property rights of families that have been living close to the port for a long time, a willingness to accept (WTA) framework was used. The econometric analysis undertaken reveals that among the different externalities derived from this growth, the only concern that truly affects individuals’ WTA is the reclamation of land from the sea during the port’s expansion. Finally, the results obtained show that the present value of the costs potentially borne by local residents ranges from a minimum value of €64.4 million to a maximum value of €107.4 million, depending of the aggregation criterion chosen.

Port–City Relationship and the Environment: Literature Survey and Methodological Approach for Project Appraisal in Presence of Environmental Externalities

AbstractIn times of increasing environmental awareness, the port–city relationship has gained new meaning because ports have been seen as the origin of both negative and positive externalities affecting public welfare. While the former are the result of port expansion, the latter are the result of transforming obsolete port areas into recreational facilities. Therefore, to support effective policymaking, this paper considers the following question: What is the scope of economic valuation of these externalities in the context of port-project appraisal? Considering their nonmarket nature, which makes economic valuation more difficult, a contingent valuation method is introduced as an economic tool capable of overcoming this obstacle. Thus, the results of the few studies carried out so far in this particular context are reviewed, and some policy implications are obtained with a view to improving understanding of the changing relationship between ports and cities in a context of growing environmental concern.