1 / 7

Non-market Valuation and its Role in Forest and Watershed Restoration

Non-market Valuation and its Role in Forest and Watershed Restoration . Julie M. Mueller, Ph.D. Assistant Professor Northern Arizona University The W. A. Franke College of Business Restoration Investment Strategies for Arizona’s Forests and Watersheds Thursday, October 3 , 2013.

butch
Download Presentation

Non-market Valuation and its Role in Forest and Watershed Restoration

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Non-market Valuation and its Role in Forest and Watershed Restoration Julie M. Mueller, Ph.D. Assistant ProfessorNorthern Arizona UniversityThe W. A. Franke College of Business Restoration Investment Strategies for Arizona’s Forests and Watersheds Thursday, October 3, 2013

  2. What is Non-market valuation? • Non-market valuation is an economic method of estimating the value of goods and services not commonly bought and sold in markets, such as: • Ecosystem restoration • Endangered species habitat • Wildfire risk • Water quality • Two categories of non-market valuation • Stated Preference • Revealed Preference

  3. Stated Preference Methods • Stated Preference methods obtain values for non-market goods and services through survey methods • Choice Analysis: respondents are provided with a well-defined set of choices with different levels of an environmental good or service and asked to choose their preferred combination • Contingent Valuation: respondents are presented with a referendum-type situation and asked their Willingness to Pay to obtain an environmental good or service

  4. Revealed Preference Methods • Revealed preference methods obtain values for non-market goods and services through observations of market behavior • Travel Cost Method: the value of an environmental good is a function of how much consumers spend to visit the site • Hedonic Property Method: the value of an environmental or service is reveled through relative differences in house prices for homes with or without the amenity

  5. Contingent Valuation and Forest and Watershed Restoration • Two studies exist in Arizona estimating Willingness to Pay for restoration • Irrigators in the Verde Valley are willing to pay approximately $185 annually to fund monitoring and maintenance of 4FRI (Mueller et al., 2013) • Residents of Flagstaff are willing to pay approximately $5 per month on their water bills to fund restoration of the Rio de Flag and Lake Mary watersheds (Mueller, 2013)

  6. Areas of Future Research • One are of important future research involves using choice analysis to estimate non-market values for a larger sample of Arizona residents, including the greater Phoenix metropolitan area • Another area of further research involves estimating the impact of the Schultz fire on house prices in Flagstaff, AZ

  7. Works Cited • Mueller, J. M., Swaffar, W., Nielsen, E. A., and Springer A.E. 2013. Estimating the Value of Watershed Services Following Forest Restoration. Water Resources Research 49: 1773-1781. • Mueller, J. M. 2013. Estimating Willingness to Pay for Watershed Restoration in Flagstaff, Arizona Using Dichotomous-Choice Contingent Valuation. Forthcoming in Forestry: An International Journal of Forestry Research. 10.1093/forestry/cpt035.

More Related