Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Env Economics > Non-Market Valuation > Flashcards

Non-Market Valuation Flashcards

1
Q

What are the types of use values?

A

direct, indirect and option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the types of non use value

A

bequest and existence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are revealed preference methods

A

They are methods that can be used to estimate the value through using market behaviour such as travel cost, hedonic price/wage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Name 3 travel cost method techniques

A

zonal single site
signle site
multi-site

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the intuition behind tcm

A

We need to travel to a site to enjoy it (gain welfare) so we pay to reach and enter a site and we can record how many visits to site in order to estimate the lower bound of the use value of the site

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are some general assumptions for TCM

A

Need to know the demand for site visits
The cost and time of the travel as proxy for the value of the recreational experience
Importance to take into account only visits which last the same amount of time, i.e. do not mix 1 day visits with multi-day visits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a requirement specific for zonal TCM

A

we need to use aggregate data such as postcodes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a requirement specific for single site TCM

A

avoid visitors that in one day visit several sites

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a requirement specific for multi-site TCM

A

need to define the available choice sets per respondent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Explain the the weak complementarity assumption

A

we are assuming that the env quality is affecting many visitors there are and how far they are travelling.
Through this assumption we can link our private good (travel cost) to the public good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

when is zonal single site TCM ideal

A

Ideal when visitation data from zones are available

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How would we carry out zonal single site TCM

A

Obtain the number of visits from different zones (e.g. post codes)
Determine travel cost from each zone
Use travel time, travel costs to determine the TC (add fee if applicable)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What makes up ‘cost of travel’

A

the direct costs (e.g. fuel) plus cost of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the standard approach for valuing travel time?

A

To assign a proportion of a person’s net wage e.g. a third or a half

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Why is the standard approach for valuing travel time debated

A

This approach is not appropriate for those who have flexible job or no job at all.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What was the Office of National Statistcs solution to the issue around assigning a proportion of a person’s net wage to value time of travel

A

They suggest ¾ of the average wage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

for zonal single site tcm, what would you plot on a scatter graph

A

Plot price (pz) against visitation rate (vz)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

for zonal single site tcm, how do you calculate visitation rate

A

vz = The number of visits (Sz) / the population of the zone (Pz)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

If people are valuing a site more than they are paying to enter it, what could land management do

A

They could increase the price of entering the park

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

describe the single site model for tcm

A

The single site model describes the demand for recreation of a person during a season (12 months)

21
Q

What is the intuition behind the single site model

A

for equal levels of Y (other variables), people living closer to the site, will visit more often than others

22
Q

What represents the demand and the price in the single site model

A

The quantity demanded is the number of visits

The price is the cost per visit

23
Q

How is the multi-site travel cost model different to the others

A

The multi-site model is not based on a “quantity demanded approach” and instead is focused on how agents choose among alternatives

24
Q

What are the assumptions of the multi-site travel cost model

A

Choices are explained by the characteristics of the sites

We assume that respondents choose the sites that give them the highest level of utility.

25
Q

Explain the hedonic price method

A

The hedonic price method uses the value of a surrogate good or service to measure the implicit price of a non-market good. For example, house prices can be used to provide a value of particular environmental attributes. Individuals may be willing to pay a premium for a house located close to a country park, while they may wish to have a discount on a house which is located close to a open cast mining site.

26
Q

Why is the hedonic price method a revealed preference method

A

Because it uses data gathered from the market to see how much people are willing to pay for a house with different characteristics

27
Q

What is the new theory of consumer demand

A

Consumers do not seek to acquire goods themselves (e.g. cars or houses) but the characteristics or ‘attributes’ they embody.
e.g the house price will include structural, neighbourhood, accessibility and env quality attributes

28
Q

What are the advantages of hpm

A

uses market data

real transactions

29
Q

What is the intuition behind hdm

A

uses the systematic variation in the price of a good that can be explained by an environmental characteristic

30
Q

How do buyers choose houses

A

Buyers choose houses that maximise their utility – given the constraints of income, the price of the house and the level of taxes

31
Q

Why do we use non-market studies in a different setting

A

Unless you have a lot of time and money, you tend to use other peoples data. Take data from a similar place and apply it you your own place. But then again, these studies might not be great, having a few to triangulate would be better

32
Q

What is a benefit transfer?

A

is a quick and inexpensive approach a degree of error exists in the estimates provided, therefore a range of values is often presented.

33
Q

What is another term for survey based methods

A

“direct” valuation methods, since individuals are asked to state their preferences

34
Q

What is a disadvantage of survey based methods

A

More time-intensive, expensive and statistically complex

35
Q

What are the 7 steps of contingent valuation

A 
Define the good and the property rights
Define the population of interest – sampling
Set up the hypothetical market
Survey design
Pretesting and delivering
Data quality control
Data analysis and WTP report
36
Q

example of willingness to pay vs willingness to accept

A

WTP - you want to purchase extra environmental protection

WTA - you want to receive compensation for inadequate env protection

37
Q

What is the issue with WTA

A

WTA is unbounded by income, so it is less suitable than WTP

38
Q

In CVM, what are sampling strategies for public goods and club goods

A

public goods - should sampl the population of beneficiaries

club goods - the population or users

39
Q

How is sampling carried out in CVM

A

Both stratified random-sampling and truly random sampling should be adopted but in reality a quota sample is the most common method

40
Q

Why is it important to set up a hypothetical market in CVM

A

to determine validity of the value distribution that one obtains
to have a clear start (status quo) and endpoint

41
Q

Examples of forms of hypothetical payment

A

Taxes
Water bill
Donations
Entrance fees

42
Q

Why do we have to be careful with what type of hypothetical payment we choose

A

Results are not vehicle-independent. E.g. many people do not regard extra income taxes in the same way as they do fees or payment to a trust. Therefore payment vehicle issues must be investigate in focus groups and pilot studies

43
Q

Survey methods in CVM

A 
Telephone
Postal 
In-person
Online 
Combined methods
44
Q

What types of elicitation mechanisms are used in cvm

A

Open ended – this is challenging for non-market goods
Bidding games
Payment cards
Discrete responses to bids

45
Q

Where is CE particularly popular

A

CE very popular in transportation and marketing studies

46
Q

What is the difference between cvm and choice experiments

A

In CV two-scenario comparison: “no-policy-no-pay” to the “with-policy-and-pay”
In CE several scenarios: comparisons in term of money and policy characteristics

47
Q

when are multi attribute behavioural models useful

A

If there is a new circumstance where there is no revealed preference sata available
Cases in which the surrogate markets are thin
revealed preference methods are time consuming and expensive, decisions may need to be taken sooner than their availability.

48
Q

What do we need to compare for benefit transfer

A

correspondence of sites (including both environment and people)
comparability of things
correspondence of the quality of the study

Env Economics (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions