Water Projects and Exurban Sprawl: WTP for Increased Water Charges as a Derived Demand for Environmental Amenities “…

1. Water Projects and Exurban Sprawl: WTP for Increased Water Charges as a Derived Demand for Environmental Amenities “….Build It And They Will Come….” Don McLeod* Roger Coupal* Scott Lieske+ and Other W-1133 members from outside of Wyoming OR Other Projects to Compare/Cross Reference?? * Department of Agricultural and Applied Economics + Wyoming Geographic Information Science Center 2006 San Antonio, TX Meetings

2. Purpose & Objectives • State Water Projects • Local Land Use Planning • Water Pipeline Location and Sprawl • Impacted Environmental Amenities

3. Project Area Montana Wyoming Sheridan County Study Area

4. Background • Water Use Subsidized • Inelastic Water Demand • Water Project Planning: Undervalued Amenity Damages • Significant Institutional Considerations (Down Stream)

5. Conceptual Framework • Random Utility Model • Market Segments (Sample) • SP via Choice Experiments Cognitive Complexity Market Realism • MLE of Multinomial Logit • Extract EV-WTP Welfare Estimates

6. Three Alternatives (Watershed Boundary) Serving Sheridan Existing Conditions Alternative A Alternative B

7. Three Alternatives: From Foothills of Big Horn Mountains Existing Conditions Alternative B Alternative A

8. Existing Conditions Wild Turkey Habitat (acres) 28,174 Alternative A 24,898 22,291 Alternative B

9. Existing Conditions Existing Conditions Wood Duck Habitat (acres) 6,119 Alternative A 2,748 2,583 Alternative B

10. Existing Conditions Antelope Winter Range (acres) 27,997 Alternative A 16,753 9,799 Alternative B

11. Existing Conditions White Tail Deer Winter Range (acres) 34,536 Alternative A 33,167 25,804 Alternative B

12. Pre Data Collection Considerations!! • Homogeneous Buffer of Development • Development Buffer and Habitat Impacts • Other Valued Attributes? • Sampling Frame/Size • Bid Levels • Anticipated Policy Relevant Outcomes