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Reviewing A Contingent Valuation Survey of Nutrient Pollution Reductions in the Chesapeake Bay

Reviewing A Contingent Valuation Survey of Nutrient Pollution Reductions in the Chesapeake Bay. Chris Moore US Environmental Protection Agency National Center for Environmental Economics 2013 April 14. Some Preliminaries…. What do you hope to learn from the data? Who is your sample?

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Reviewing A Contingent Valuation Survey of Nutrient Pollution Reductions in the Chesapeake Bay

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  1. Reviewing A Contingent Valuation Survey of Nutrient Pollution Reductions in the Chesapeake Bay Chris Moore US Environmental Protection Agency National Center for Environmental Economics 2013 April 14

  2. Some Preliminaries… What do you hope to learn from the data? Who is your sample? How will the survey be administered? Have you done any pretesting with small groups?

  3. Some more major elements of study design… What is the commodity being valued? What is the payment vehicle? What response format will you use? How will you identify protest responses, scenario rejection, or other responses you may want to screen from the sample? What incentive do people have for completing the survey? How many completed surveys do you want and what is your expected response rate?

  4. Let’s take a look at the survey… Introduction • Confidentiality • Consequentiality… Warm up questions • Gets people thinking about the resource and comfortable with the survey Can respondents answer these questions? What’s a tributary? …of the Chesapeake Bay? What’s chemical runoff? Asking for recall data… Average over how many years? How will these data be used? Consider asking about 2012 Allow people to say “Don’t know”

  5. Information Section • Familiarizes respondent with resource • Explains motivation for policy • Describes change to be valued Objectivity is important. Citing the CBF may imply advocacy and bias responses. Inputs, endpoints, and ecological production functions… Consider adding “Cheap Talk” text “The Chesapeake Bay watershed is a 200 mile estuary…” Will this be presented in color? Consider moving delivery mechanism from valuation question to info section.

  6. Inputs vs Endpoints as Commodities • Inputs to the ecological production function • e.g. Nutrients, invasive species, control measures… • Ecological production function • Determines how the inputs affect ecological outcomes • e.g. Nutrients leading to hypoxia; introduced insects killing trees • Ecosystem service production • How ecological outcomes affect human welfare. Includes human component. • e.g. How many more fish will be caught by fishermen? • *How much of this process should be modeled by the researcher and how much should be assumed by the respondent? Natural Resource Management Policies and Regulations Biophysical Processes Ecological Endpoints Ecosystem Services

  7. Valuation Questions • Response format: statistical efficiency vs. precision • Dichotomous choice • Double or multiple bounded DC • Payment card • Open ended • How many valuation questions do you want to include? • Considerations when choosing a payment mechanism • Incentive compatibility • Applicability & realism • Protest responses • Time frame for payments • Payment mechanism options • One time donation • Taxes • Utility bills

  8. Debriefing Questions • Debriefing questions are an important part of a CV survey. • Can help identify protest responses, scenario rejection, misunderstanding of the question, etc. • Can also provide valuable conditioning data for estimation • Some Likert scale examples • “The survey provided me with enough information to make informed choices.” • “I am against any new taxes.” • “I do not think I should have to pay for pollution reduction programs.” • “Preserving the environment the right thing to do, no matter how high the cost.”

  9. Overall • Short is good. • Simple is good…most of the time. • Test the survey on small groups that are representative of your sample frame. • Do they understand all the terms used? • What is their motivation for paying? • What is the distribution of amounts they would pay? • Are they considering their income and budget constraints when answering? • Do they perceive any bias on the survey? • Does anyone reject the scenario or the payment vehicle? • Using pollution reduction as the item being valued can work – if people understand how it will affect the things they care about. • Consider adding some debriefing questions to identify protest responses and scenario rejection.

  10. So…What do you think? The environmental improvements being valued Payment vehicle Response format Debriefing questions

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