scholarly journals Estimating Benefits of Nature-based Solutions: Diverging Values From Choice Experiments With Time or Money Payments

2021 ◽  
Vol 9 ◽  
Author(s):  
Liselotte C. Hagedoorn ◽  
Mark J. Koetse ◽  
Pieter J. H. van Beukering

Nature-based solutions (NBS) provide a promising means to a climate resilient future. To guide investments in NBS, stated preference studies have become a common tool to evaluate the benefits of NBS in developing countries. Due to subsistence lifestyles and generally lower incomes, SP studies in developing countries increasingly use time payments as an alternative to the traditionally implemented money payments. It remains unclear, however, how time values should be converted into money values, how the payment affects willingness to pay (WTP) estimates, and how this influence varies across settings with different levels of market integration. We compare the results of choice experiments that use either time or money payments and that are implemented in urban and rural Ghana. The choice experiments target to value different NBS aimed at erosion prevention and other ecosystem service benefits along the highly erosion prone Ghanaian coastline. Time payments are converted into monetary units using two generic wage-based conversion rates and one novel individual-specific non-wage-based conversion rate. We find higher WTP estimates for the time payments. Moreover, we find that the underlying implicit assumptions related to the currently commonly applied generic wage-based conversion rates do not hold. Finally, we find higher levels of market integration and smaller WTP disparities in the urban site, providing evidence that market integration allows for convergence of WTP estimates. These results provide guidance on the accurate estimation of NBS benefits through the implementation of stated preference studies with time payments.

2020 ◽  
Vol 25 (5) ◽  
pp. 482-508 ◽  
Author(s):  
Liselotte C. Hagedoorn ◽  
Mark J. Koetse ◽  
Pieter J. H. van Beukering ◽  
Luke M. Brander

AbstractTo guide investments in ecosystem-based adaptation (EbA) in developing countries, numerous stated preference valuation studies have been implemented to assess the value of ecosystem services. These studies increasingly use time payments as an alternative to money. There is limited knowledge, however, about how to convert time to money and how the type of payment affects willingness to pay (WTP). In this study, the results of choice experiments using time and money payments are compared in the context of EbA measures in Vietnam. Six, of which five individual-specific, conversion rates are applied. WTP estimates are found to be higher for time payments. Moreover, the type of payment vehicle as well as the conversion rate has substantial effect on mean WTP and WTP distributions. We discuss implications of these results for the conversion of time to money and the use of resulting WTP estimates in cost benefit analyses in developing countries.


Author(s):  
Amirmahmood Amini Sedeh ◽  
Amir Pezeshkan ◽  
Rosa Caiazza

AbstractInnovative entrepreneurship is one of the key drivers of economic development particularly for less developed economies where the economic growth is at the forefront of policymakers’ agenda. Yet, the research on how various factors at different levels interact and bring about innovative entrepreneurship in emerging and developing countries remains relatively scarce. We address this issue by developing a multilevel framework that explains how entrepreneurial competencies attenuate the negative impact of innovation barriers. Our analysis on a sample of individuals from 24 economies, 17 developing and 7 emerging countries, reveals that entrepreneurial competencies become more instrumental for innovative entrepreneurship when general, supply-side, and demand-side innovation barriers are higher. The findings offer unique insights to policymakers particularly in developing countries interested in promoting innovative entrepreneurship and to entrepreneurs and investors seeking to establish and support innovative ventures.


2005 ◽  
Vol 41 (1) ◽  
pp. 81-92 ◽  
Author(s):  
G. P. BUTLER ◽  
T. BERNET ◽  
K. MANRIQUE

Potatoes are an important cash crop for small-scale producers worldwide. The move away from subsistence to commercialized farming, combined with the rapid growth in demand for processed agricultural products in developing countries, implies that small-scale farmers and researchers alike must begin to respond to these market changes and consider post-harvest treatment as a critical aspect of the potato farming system. This paper presents and assesses a low cost potato-grading machine that was designed explicitly to enable small-scale potato growers to sort tubers by size for supply to commercial processors. The results of ten experiments reveal that the machine achieves an accuracy of sort similar to commercially available graders. The machine, which uses parallel conical rollers, has the capacity to grade different tuber shapes and to adjust sorting classes, making it suitable for locations with high potato diversity. Its relatively low cost suggests that an improved and adapted version of this machine might enhance market integration of small-scale potato producers not only in Peru, but in other developing countries as well.


2020 ◽  
Vol 20 (22) ◽  
pp. 14123-14138
Author(s):  
Chaomin Wang ◽  
Bin Yuan ◽  
Caihong Wu ◽  
Sihang Wang ◽  
Jipeng Qi ◽  
...  

Abstract. Higher alkanes are a major class of intermediate-volatility organic compounds (IVOCs), which have been proposed to be important precursors of secondary organic aerosols (SOA) in the atmosphere. Accurate estimation of SOA from higher alkanes and their oxidation processes in the atmosphere is limited, partially due to the difficulty of their measurement. High-time-resolution (10 s) measurements of higher alkanes were performed using NO+ chemical ionization in proton transfer reaction time-of-flight mass spectrometry (NO+ PTR-ToF-MS) at an urban site in Guangzhou in the Pearl River Delta (PRD) and at a rural site in the North China Plain (NCP). High concentrations were observed in both environments, with significant diurnal variations. At both sites, SOA production from higher alkanes is estimated from their photochemical losses and SOA yields. Higher alkanes account for significant fractions of SOA formation at the two sites, with average contributions of 7.0 % ± 8.0 % in Guangzhou and 9.4 % ± 9.1 % in NCP, which are comparable to or even higher than both single-ring aromatics and naphthalenes. The significant contributions of higher alkanes to SOA formation suggests that they should be explicitly included in current models for SOA formation. Our work also highlights the importance of NO+ PTR-ToF-MS in measuring higher alkanes and quantifying their contributions to SOA formation.


Author(s):  
Tim Haab ◽  
Lynne Lewis ◽  
John Whitehead

The contingent valuation method (CVM) is a stated preference approach to the valuation of non-market goods. It has a 50+-year history beginning with a clever suggestion to simply ask people for their consumer surplus. The first study was conducted in the 1960s and over 10,000 studies have been conducted to date. The CVM is used to estimate the use and non-use values of changes in the environment. It is one of the more flexible valuation methods, having been applied in a large number of contexts and policies. The CVM requires construction of a hypothetical scenario that makes clear what will be received in exchange for payment. The scenario must be realistic and consequential. Economists prefer revealed preference methods for environmental valuation due to their reliance on actual behavior data. In unguarded moments, economists are quick to condemn stated preference methods due to their reliance on hypothetical behavior data. Stated preference methods should be seen as approaches to providing estimates of the value of certain changes in the allocation of environmental and natural resources for which no other method can be used. The CVM has a tortured history, having suffered slings and arrows from industry-funded critics following the Exxon Valdez and British Petroleum (BP)–Deepwater Horizon oil spills. The critics have harped on studies that fail certain tests of hypothetical bias and scope, among others. Nonetheless, CVM proponents have found that it produces similar value estimates to those estimated from revealed preference methods such as the travel cost and hedonic methods. The CVM has produced willingness to pay (WTP) estimates that exhibit internal validity. CVM research teams must have a range of capabilities. A CVM study involves survey design so that the elicited WTP estimates have face validity. Questionnaire development and data collection are skills that must be mastered. Welfare economic theory is used to guide empirical tests of theory such as the scope test. Limited dependent variable econometric methods are often used with panel data to test value models and develop estimates of WTP. The popularity of the CVM is on the wane; indeed, another name for this article could be “the rise and fall of CVM,” not because the CVM is any less useful than other valuation methods. It is because the best practice in the CVM is merging with discrete choice experiments, and researchers seem to prefer to call their approach discrete choice experiments. Nevertheless, the problems that plague discrete choice experiments are the same as those that plague contingent valuation. Discrete choice experiment–contingent valuation–stated preference researchers should continue down the same familiar path of methods development.


2010 ◽  
Vol 38 (9) ◽  
pp. 1167-1172 ◽  
Author(s):  
José Juan Vázquez ◽  
Isabel Pascual ◽  
Sonia Panadero

From information supplied by 1,092 university students from countries with different levels of development, in this work we developed an up-to-date instrument to allow the causes of poverty in developing countries to be studied. Taking the Causes of Third World Poverty Questionnaire (CTWPQ; Harper, 2002), the most widely used instrument for this purpose as the starting point, and taking into account contributions made by other authors, The Causes of Poverty in Developing Countries Questionnaire (CPDCQ) was developed. It is an instrument of 20 items organized into 5 factors: “Blame causes within developing countries”, “Blame causes external to developing countries”, “Blame attributed to developing countries' populations”, “Blame attributed to developing countries' services”, and “Blame attributed to the poor distribution of land in developing countries”.


Author(s):  
Ekin Birol ◽  
Dorene Asare-Marfo ◽  
Bhushana Karandikar ◽  
Devesh Roy ◽  
Michael Tedla Diressie

Purpose – The purpose of this paper is to explore farmer acceptance of a biofortified staple food crop in a developing country prior to its commercialization. The paper focuses on the hypothetical introduction of a high-iron pearl millet variety in Maharashtra, India, where pearl millet is among the most important staple crops. Design/methodology/approach – A choice experiment is used to investigate farmer preferences for and trade-offs among various production and consumption attributes of pearl millet. The key pearl millet attributes studied include days it takes pearl millet to mature, color of the roti (flat bread) the grain produces, the presence of high-iron content (nutritional attribute), and the price of the pearl millet seed. Choice data come from 630 pearl millet-producing households from three purposefully selected districts of Maharashtra. A latent class model is used to investigate the heterogeneity in farmers’ preferences for pearl millet attributes and to profile farmers who are more or less likely to choose high-iron varieties of pearl millet. Findings – The results reveal that there are three distinct segments in the sample, and there is significant heterogeneity in farmer preferences across these segments. High-iron pearl millet is valued the most by larger households that produce mainly for household consumption and currently have lower quality diets. Households that mainly produce for market sales, on the other hand, derive lower benefits from consumption characteristics such as color and nutrition. Research limitations/implications – The main limitation of the study is that it uses a stated preference choice experiment method, which suffers from hypothetical bias. At the time of implementing this study biofortified high-iron pearl millet varieties were not yet developed, therefore the authors could not have implemented revealed preference elicitation methods with real products and payment. Originality/value – The method used (stated preference choice experiment method) is commonly used to value non-market goods such as environmental goods and products that are not yet in the market. It’s application to agriculture and in developing countries is increasing. As far as the authors know this is the first choice experiment implemented to investigate farmer/consumer preferences for biofortified crops. The study presents valuable information for development and delivery of biofortified crops for reducing micronutrient deficiencies.


1982 ◽  
Vol 4 (1) ◽  
pp. 81-91
Author(s):  
Decky Fiedler ◽  
Lee Roy Beach

This study uses a Decision/Expectancy model to examine factors contributing to sports preference for college men and women at three levels of participation. Subjects rated the utility of outcomes for nine sports (a sampling of team and nonteam, competitive and recreational activities) and their expectations that each outcome would occur given that they participated in each sport. Subjects were divided into six groups according to current and recent participation in sports activities. A relationship was found between current level of participation and age of earliest participation. Subjective Expected Utilities (SEUs) for groups suggest that differences between groups having different levels of participation were not in their assessments of the utilities of outcomes of participation, because all subjects found positive outcomes equally favorable and negative outcomes equally unfavorable. The groups did differ, however, in their assessment of the probabilities that positive or negative outcomes would occur as a result of their participation. Men and women were very similar in their evaluations. There was a high correlation for groups between SEU and stated preference for the nine sports.


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