The Hambach Forest in the German Debate on Climate Protection: Is There a Symbolic Value beyond the Environmental Value?

In the late summer of 2018, the Hambach Forest (North Rhine Westphalia/ Germany) appeared prevalently in the media due to massive protests against its clearance for lignite mining with for the power generation. Because coal power as a form of energy supply is extremely climate intensive, the Hambach Forest rapidly became a symbol of the fight against climate change and the ongoing destruction of nature and its resources for economic reasons. Due to the extra-ordinarily prominent role of the Hambach Forest in the public opinion across Germany, this research addresses values of the forest to the population in monetary terms as well as the underlying factors that determine those values. For the analysis, a contingent valuation survey was conducted in December 2019 in Germany. The proposed amounts for the preservation of the Hambach Forest are mostly in accordance with previous evaluation studies of woods and forests, although this time almost only passive-use values are decisive. Further, a conversion of the WTP values to the area of the Hambach Forest results in an extra-ordinarily high per-hectare value of about 3.6 million. Thus, the symbolic value of the forest is remarkable and should be considered in future political decisions.

Renewable Minigrid Electrification in Off-Grid Rural Ghana: Exploring Households Willingness to Pay

Renewable energy minigrids hold significant prospects for Africa’s energy sector and its economic development in general. The government of Ghana has established pilot renewable minigrids in five off-grid communities as a testing ground for the electrification of over 600 existing rural communities that cannot be electrified via the national grid. Although there is evidence on willingness to pay (WTP) values for renewable-generated electricity in some developing countries, little is known about households’ WTP for renewable-based electricity in Ghana and, in particular, about renewable minigrids for rural electrification. This paper provides one of the first WTP estimates for renewable-based electricity for rural electrification in a developing economy context such as Ghana. Using data from a contingent valuation survey undertaken in all five pilot renewable minigrid project communities, we found that rural households are willing to pay an average of 30 GHC/month (≈5 USD/month) for high-quality renewable-powered electricity services, which is twice the amount they are currently paying based on the Uniform National Tariffs. The hypothetical bias is addressed by conducting a survey among active users of the minigrids. The starting point bias is reduced by employing random starting bids. The respondents are willing to pay between 9 and 11% of their discretionary incomes to cover the cost of accessing reliable renewable-powered electricity in the rural, off-grid communities in Ghana. The paper concludes by discussing the policy implications of these findings regarding the development of tariff regulations and business models for renewable minigrids in the rural, off-grid sector.

Level and determinants of willingness to pay for rapid COVID-19 testing delivered through private retail pharmacies in Kenya.

To support the government response to the coronavirus disease 2019 (COVID-19) pandemic, accessible and sustainable testing approaches are needed. Private retail pharmacies are a key channel through which communities can access COVID-19 testing. We examined the level and determinants of the willingness to pay (WTP) for rapid COVID-19 testing delivered through private retail pharmacies in Kenya. Data was collected following a cross-sectional double-bounded dichotomous choice contingent valuation survey across 341 clients visiting five private retail pharmacies in Nairobi, Kisumu and Siaya counties. Our findings indicate mean and median WTP levels of KES 611 (US$ 5.59) and KES 506 (US$ 4.63), respectively. Estimated WTP varied across counties and increased with household income and self-reported interest in pharmacy-based COVID-19 rapid testing. These findings can inform price setting, price differentiation, price subsidization and other program design features geared towards enhancing affordability, equity, and uptake.

The Economic Sustainability of Culture in Hawai’i: Tourists’ Willingness to Pay for Hawaiian Cultural Experiences

Given the current travel restrictions with the COVID-19 pandemic, there is an unprecedented opportunity for Hawai’i to reexamine its current tourism offerings and establish a new approach to support a more authentic, cultural, and sustainable tourism for the U.S. domestic tourist market. As tourists from the continental U.S. are the largest source market for visitors to Hawai’i, the purpose of this study is to examine the trend towards an “authentic cultural” tourism experience and evaluate whether U.S. visitors will be willing to pay for a deeper integration and representation of Hawaiian culture in tourism offerings. The contingent valuation method (CVM) was adopted to quantify the willingness to pay (WTP) more by the tourists to Hawaii in order to experience a more “authentic Hawaiian cultural experience” as well as “sustainable experiences”. Differences between returning and first-time visitors were considered. This study focused on continental U.S. visitors’ perceptions of Hawaiian culture and the sustainability of Hawaiian tourism products, as well as the assessment of locally grown food and tourists’ willingness to pay extra for these tourism products and experiences. The contingent valuation survey demonstrated that continental U.S. travelers were supportive of an additional fee in order to experience authentic Hawaiian cultural and tourism experiences designed and/or facilitated by Native Hawaiians. In addition, U.S. visitors were also supportive of paying additional fees for activities or experiences to support sustainable tourism in Hawai’i, including paying more for locally grown food, indicating that they would be willing to increase their restaurant/hotel food bill in order to support the Hawaii’s local farming industry. The results of this study demonstrate that there are economic opportunities to further integrate Hawaiian culture and sustainability into the experience of visitors, and that U.S. visitors are willing to support these cultural activities financially.

Is prevention of suicide worth less? A comparison of the value per statistical life

This paper compares the value per statistical life (VSL) in the context of suicide prevention to that of prevention of traffic fatalities. We conducted a contingent valuation survey with questions on willingness to pay (WTP) in both contexts by administering a web questionnaire to 1038 individuals aged 18 to 80. We conjectured that WTP for a given impact on the number of fatalities would be lower for suicide prevention because suicide, at least to some degree, is the result of individuals’ own decisions. However, this hypothesis was not supported by the within- or between-sample estimates of WTP or by responses to direct questions. Hence, no support is provided for the use of a lower valuation of the impact of suicide prevention than for risk-reducing programs in other fields, such as traffic safety. This implies that the same VSL should be used for evaluating suicide prevention interventions and for risk-reducing programs in other policy areas and funds for the prevention of fatalities should be directed to the area with the lowest cost per life saved.

​Farmer’s Willingness-to-Pay for Animal Health and Livestock Insurance Services in Milking State of India: Empirical Findings from Rural Areas of Gujarat

This paper presents the results of a referendum-style contingent valuation survey conducted in one of the richest milking states of India. 200 households were surveyed to study the farmer’s preferences and choices for the health, breeding and insurance services. The objective of the survey was to assess the preference structure and the willingness of poor farmers to pay for veterinary health and insurance services. It is a comparative study between the existing situation and improved situation, that how the willingness to pay (WTP) will change if the quality of the health, breeding and insurance services will improve. The results show that farmers are willing to pay for assured access to veterinary services. Majority of the households value these services tremendously and are not looking for subsidies provided by the government institutions. It was noticed that farmer’s willingness to pay was much higher than the amount government institutions were presently charging for improved livestock support services, e.g. health and AI services. Though the coverage of Livestock insurance was low but it was found that farmers were ready to pay high amount of premium charges if the insurance services are easily available to the farmer’s door step with very less paper work and other formalities. Combining the findings of this survey with other closely related studies and the changing structure the input and output markets for livestock sector, the paper suggests specific policy measures to more effectively meet the expanding livestock services needs of poor livestock farmers.

An Economic Analysis Of Sugar Sweetened Beverage Taxes - A Model With Substitutes And Complements

<p><b>Studies have shown that excess sugar intake is one of the potential causes of obesity and diabetes. As a result, taxing sugar sweetened beverages (SSBs) has been put forward as a possible solution. However, SSB taxes may not be effective, as consumers may switch to other untaxed drinks. In addition, there are gaps regarding (1) the socially optimal tax rate in New Zealand, (2) which tax base is the most favorable at its socially optimal level, and (3) whether taxing all beverages is superior to taxing only SSBs. Given these, this study addresses the socially optimal tax rate, taking into account substitutes and complements. It also explores the most efficient tax base, and whether beverage taxes are superior to SSB taxes.</b></p> <p>The study starts from constructing a utility-maximization model of the optimal corrective tax, which allows substitution and complementary effects. Since the marginal harm from SSBs is included as a component of the optimal tax formula, a contingent valuation survey is conducted to estimate people’s willingness-to-pays for health risk reductions, the results of which are further used to measure the monetary value of harm associated with internalities. Moreover, cost analyses using a Markov model and the UK Prospective Diabetes Study model are applied to estimate the harm associated with externalities. Finally, effects of taxes on social welfare are modeled, the result of which can inform the question of which tax base is the most efficient, and whether beverage taxes are superior to SSB taxes or not.</p> <p>Our estimate of the optimal tax rate suggests that the prices of SSBs in New Zealand should probably increase by 100% to 200%. A beverage tax by calories is the most favorable option, as it has a perfect relationship with the harmful ingredients. Whether taxing all beverages by price or by litres is superior to taxing only SSBs depends on the calories substitutes contain, and the magnitude of substitution effects. When there are strong substitution effects, and substitutes contain low energy, taxing only SSBs is better than taxing all beverages by price or by litres.</p>

An Economic Analysis Of Sugar Sweetened Beverage Taxes - A Model With Substitutes And Complements

<p><b>Studies have shown that excess sugar intake is one of the potential causes of obesity and diabetes. As a result, taxing sugar sweetened beverages (SSBs) has been put forward as a possible solution. However, SSB taxes may not be effective, as consumers may switch to other untaxed drinks. In addition, there are gaps regarding (1) the socially optimal tax rate in New Zealand, (2) which tax base is the most favorable at its socially optimal level, and (3) whether taxing all beverages is superior to taxing only SSBs. Given these, this study addresses the socially optimal tax rate, taking into account substitutes and complements. It also explores the most efficient tax base, and whether beverage taxes are superior to SSB taxes.</b></p> <p>The study starts from constructing a utility-maximization model of the optimal corrective tax, which allows substitution and complementary effects. Since the marginal harm from SSBs is included as a component of the optimal tax formula, a contingent valuation survey is conducted to estimate people’s willingness-to-pays for health risk reductions, the results of which are further used to measure the monetary value of harm associated with internalities. Moreover, cost analyses using a Markov model and the UK Prospective Diabetes Study model are applied to estimate the harm associated with externalities. Finally, effects of taxes on social welfare are modeled, the result of which can inform the question of which tax base is the most efficient, and whether beverage taxes are superior to SSB taxes or not.</p> <p>Our estimate of the optimal tax rate suggests that the prices of SSBs in New Zealand should probably increase by 100% to 200%. A beverage tax by calories is the most favorable option, as it has a perfect relationship with the harmful ingredients. Whether taxing all beverages by price or by litres is superior to taxing only SSBs depends on the calories substitutes contain, and the magnitude of substitution effects. When there are strong substitution effects, and substitutes contain low energy, taxing only SSBs is better than taxing all beverages by price or by litres.</p>