chapter 4

Question 1

why should you value the environment

Answer 1

damage estimates for policy design and the court

Question 2

assessing magnitude of damage

Answer 2

identifying affected categories
estimating the physical relationship between the pollutant and damages caused to categories
estimating response by the effected parties toward averting/mitigating some portion of the damage
placing a monetary value on the physical damage

Question 3

total wtp

Answer 3

use value + option value + non use value

Question 4

use value

Answer 4

direct use, even scenic beauty

Question 5

passive use value

Answer 5

resource is not actually used up in the process of experiencing it

Question 6

option value

Answer 6

reflect the value people place on a future ability to use the environment
wtp to preserve the option to use in the future

Question 7

non use value

Answer 7

people are wtp for improving or preserving resources that they will never use

Question 8

bequest

Answer 8

wtp to ensure it is available for your kids

Question 9

existence

Answer 9

wtp tp ensure it is available in the absence of any future interest

Question 10

revealed preference valuation

Answer 10

based on actual observable choices that allow resource values to be directly inferred from those choices

Question 11

stated preference valuation

Answer 11

not directly observable attempt to derive value by using a survey to est wtp

Question 12

stated preference direct methods

Answer 12

contingent valuation: ask respondents what value they would place on an environmental change or on preserving it

Question 13

stated preference indirect methods

Answer 13

attribute based: respondents are asked to choose among alternate bundles of goods

contingent ranking: ranking options

Question 14

major concerns with stated preference

Answer 14

strategic bias: intend to influence outcome
information bias: force to value attributes they have little experience with
starting-point bias: could occur when they have to check off answers from a predetermined range of possibilities
hypothetical bias: biased answer for personal reasons
discrepancy between wtp and wta: wta > wtp

Question 15

cvm

Answer 15

effective in est. non use and passive value methods but lack the accuracy to estimate use value

Question 16

btm

Answer 16

estimates for one site to be based upon estimates from other sites or benefits from an earlier time period to provide the foundation for a current estimate

Question 17

revealed preference direct methods

Answer 17

market price

Question 18

revealed preference indirect methods

Answer 18

travel cost method: infer value of a recreational resource by using info on how much the visitors spent getting to the sit to construct a demand curve for wtp

1) examine number of trips there
2) examine whether people decided to visit a site and which one

hedonic property value: use market price data and then break down the house sales price into its components included house, neighborhood, and environmental characteristics

hedonic wage: workers in high risk environment = higher wages

averting expenditure: potential expenses needed to deal with a problem
amount of money people are wtp to protect themselves from pollution damages

Question 19

gis

Answer 19

made up of layers such that many variables can be visualized simultaneously using overlays used fro estimating health impacts and associated with economic values of changes in air pollution runs health impact functions - related change in concentration of pollution with change in health

Question 20

human valuation

Answer 20

the economic approach values the change in probability of death resulting from the reduction in environmental risk

Question 21

VSL

Answer 21

represents an individuals wtp for small changes in mortality risks
amount individual wtp / reduction in probability