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Agrobiodiversity is associated with a range of important but poorly quantified public good ecosystem services, the conservation of which requires public support. With a view to determining the general public's willingness to pay (WTP) for such conservation, we organised interviews with 491 adult Peruvian residents in three regions a stated preference choice experiment (CE) to elicit the value they place on crop genetic resources conservation, using quinoa cultivation as a case study. Responses revealed strong support for the conservation of quinoa diversity particularly when conservation was framed in terms of conserving national cultural identity or food security. Respondents were willing to make a one-off donation of US$31.79 to an in situ on-farm quinoa crop diversity conservation programme, placing the highest values on programme attributes related to securing bequest/existence and option values, followed closely by stable landscape conservation. WTP was higher when the public was reminded that conservation also contributed to national cultural identify or food security. A conservative aggregation of the WTP estimates to the population of the three regions results in an estimated total WTP for quinoa conservation of US$24.18 m and a benefit-cost ratio of 1.22. Findings demonstrate the significant and frequently ignored social welfare benefits associated with non-market agrobiodiversity-related public good ecosystem services, in this case equivalent to just over a quarter of market production values. Such information can be used to design and prioritise quinoa genetic diversity conservation programmes with an emphasis on such attributes. [ABSTRACT FROM AUTHOR]

E-waste is becoming a concern due to its toxic content and serious pollution effect. Many studies have focused on the detrimental impacts of hazardous e-waste and extended producer responsibility for e-waste recycling. There is, however, a lack of case studies from the perspectives of consumers' awareness of e-waste, and willingness to pay (WTP) for e-waste recycling. An e-waste management system cannot be efficient when consumers are not actively involved in. Based on a survey of 544 respondents in Ho Chi Minh City, this paper investigates the respondents' WTP for e-waste recycling and factors affecting their WTP by integrating the theory of planned behaviour and the norm activation model. The Contingent Valuation Method and Tobit model were applied to estimate and explain consumers' WTP for e-waste recycling. The model showed that subjective/social norms, moral/personal norms, inconvenience of recycling, perception of e-waste pollution, age, home ownership, and income significantly affected WTP for e-waste recycling. The estimated mean WTP from the Tobit model was 1.588% (Televisions), 1.644% (Computers) and 1.656% (Mobile phones) of the purchasing bills. The findings are useful for policy-makers in developing more effective environmental management policies for e-waste. [ABSTRACT FROM AUTHOR]

As one of the stakeholders of the soil pollution control, the public's willingness to pay for soil pollution control is an important factor of soil protection and pollution control. The purpose of this study was to investigate the difference of residents' willingness to pay (WTP) in soil pollution control by using the multigroup structural equation model (SEM), which was used to study the behavior and WTP of residents in quantitative analysis. The results show that, in terms of individual characteristics, residents living in different regions show significant differences in their WTP, residents of different age, occupation, income level and education level all show significant differences in WTP. As far as the determinants are concerned, the subjective norms and personal norms of urban residents have the greatest influence on their WTP, followed by urban residents and village residents. As a whole, residents' WTP is positively influenced by their subjective norms and personal norms. Residents' WTP can promote their payment behavior, but the overall range is small and there are spatial differences. [ABSTRACT FROM AUTHOR]

Farmland not only provides human being with food and industrial materials, but also has non-market value. However, few studies have explored the impact of livelihood capital configuration and their willingness to pay (WTP) for the farmland non-market value, from farmers' perspective. Based on the field survey data of 434 households in Jianghan Plain, China, this paper divided the research process into two stages to explore the impact of farmers' livelihood capital on their WTP by using binary logistics model and qualitative comparative analysis method of fuzzy sets (fsQCA). The results show that (1) The total livelihood capital of farmers was 2.667, with psychological capital 0.649, natural capital 0.621, social capital 0.127. 79.49% of the households were willing to pay for the farmland non-market value, and the most concentrated range of it is 50–200 yuan/hm2. (2) Both social capital and psychological capital had positive impacts on farmers' WTP for the non-market value of farmland protection. (3) There were two livelihood capital configurations that could improve the WTP of farmers. When lacking of human capital, physical capital and psychological capital, the improvement in farmers' financial capital and social capital will improve farmers' WTP. When the natural, financial, and psychological capital are poor, the rich human capital, physical capital and social capital will also increase farmers' WTP. In view of the results, policy implications on livelihood capital structure optimization and ecological compensation system differentiation were proposed. [ABSTRACT FROM AUTHOR]

Due to an EU directive making integrated pest management (IPM) mandatory, European farmers are expected to reduce their use of chemical pesticides, which may potentially increase production costs and risk of harvest loss. Less pesticide use is appreciated by many consumers and may generate a higher willingness to pay (WTP). However, IPM is a wide concept and it is difficult for consumers to distinguish between products with high and low risk of pesticide residues. As a result, consumers might use other characteristics, such as country of origin, for the identification of safer products. In this study, we investigate if a higher WTP for Norwegian strawberries is associated with a belief that they contain less pesticide residues than imported berries. We use regression analysis to estimate to what extent the difference in WTP for Norwegian and imported strawberries is correlated with various perceptions about strawberries. The analyses reveal that the stronger the belief that Norwegian strawberries have less pesticide risk than imported ones, the higher the WTP for Norwegian strawberries. This means that if consumers believe domestic farmers use little pesticides, domestic products might be able to sell at considerably higher prices than imports. Hence, it may be economically beneficial for farmers to keep pesticide use at a minimum. Furthermore, we find that consumers have a higher WTP for strawberries produced with less use of pesticides, although not pesticide-free, indicating that IPM is appreciated. [ABSTRACT FROM AUTHOR]

China is among the countries facing the most serious pollution effects of e-waste. Many studies have focused on e-waste recycling laws and regulations, recycling technologies, and the pollution situation in China. However, there is a lack of case studies from the perspective of the residents' attitudes and opinions about e-waste recycling. Based on 474 families surveyed by questionnaire, this study, taking Zhuhai City as one example, investigated residents' behaviors and attitudes toward e-waste disposal, and their willingness to pay (WTP) for e-waste recycling. A majority (76.4%) of respondents realized that the improper treatment of e-waste would cause serious threats to the environment and human health. Only 38.2% of respondents were willing to pay for e-waste recycling. Most respondents believed that the fee should be borne by government and manufacturers. These results imply that income level and satisfaction with management will promote WTP significantly, whereas the recovery price is a negative influence on the respondents' WTP. The WTP values were positively correlated with environmental awareness and income at 5% and 10%, respectively. Finally, the estimated average monthly WTP value per household in Zhuhai City is 10.2 RMB ($1.6). [ABSTRACT FROM AUTHOR]

The bicycle is one of the most affordable and flexible means of transportation in a developing country such as India. Despite being an important mode of transportation, a sharp decline in bicycle mode share has been observed in small and medium-sized Indian cities where trip lengths are favorable for bicycling. This decline could be attributed to inadequate bicycle infrastructure which should be improved not only to preserve the existing bicycle base, but also to attract new bicycle users. For such an improvement, it is essential to identify and evaluate key attributes that users value to select a bicycle route. In this study users' preferences for bicycle infrastructure were collected with the help of stated preference survey in two Indian cities, Kharagpur and Asansol, and were used to estimate the choice preferences of both commuter and non-commuter bicyclists. In total, five different attributes were found to influence bicycle route choice, namely, road width, level of risk, route visibility, journey time and operating cost. With the collected data, random parameter logit (RPL) models were developed with and without considering heterogeneity around the means of the attributes. Based on the results of these RPL model coefficients and willingness to pay (WTP) values, the five attributes were estimated to quantify the perceived benefits associated with each attribute. Results indicate that the level of risk (a measure of perceived risk associated with motorized vehicles) is considered the most significant deterrent influencing bicyclist's route choice decisions in both cities referred to above, followed by route visibility, road width and bicycle journey time. For almost all attributes, the WTP's for non-commuters are found significantly higher than those for commuters. [ABSTRACT FROM AUTHOR]

The growing appreciation of distance decay as an important parameter necessary for estimating willingness to pay (WTP) is hugely recognized in the literature. In this paper, we estimated the extent to which distance decay and individual's socioeconomic characteristics influence the WTP for restoration of environmental quality attributes in the Heihe River Basin. A choice experiment technique was used to evaluate the household's WTP for the improvements in local environmental attributes. The results of mixed logit model significant impact of distance on the individual's WTP for the improvements in environmental attributes. Findings of the study revealed that people living within 25 km from the river are willing to pay more for an increase in the river water quality level, a reduction in sandstorm days, and an increase in the area of the east Juyan Lake than the people living within the range of 50 km and much more compared to 50 km away from the river. Based on the socioeconomic characteristics, it is concluded that the level of education, age, household's annual income, and household size have a significant effect on the WTP. Results of the implicit prices for each attribute showed the preferences of the inhabitants for every attribute, where the highest WTP in pooled data was recorded for river water quality level (i.e., RMB 124.81/year) and the lowest for leisure and entertainment (i.e., RMB 0.40/year). The highest WTP for water quality suggests that water quality level was the most favored attribute compared to others, subject to the given conditions of water quality and the river basin. [ABSTRACT FROM AUTHOR]

This study mainly focuses on welfare impacts from improving considerably degraded river stretches of Heihe river basin and to determine the impact of spatial heterogeneity on willingness-to-pay (WTP) for integrated river basin management (IRBM). The significant WTP values for ecological attributes improvement revealed that the respondents of Heihe river basin significantly support the integrated ecological restoration program. However, socioeconomic characteristics and residential location have a significant impact on WTP values for different ecological attributes. The results demonstrate that water quality is the most preferred variable among all the river attributes in the study area. For example, in Zhangye, Gaotai, Ejinaqi, Minle, and Sunan the respondents were willing to pay 90.6, 160.44, 377.15, 65.40, and 139.21 Yuan per year, respectively, for a one-grade improvement in current water quality. Our findings also show that all the major counties of the basin concern more about water quality representing the relative importance of river water and express the maximum WTP for its improvement, while all major counties also share a low WTP for improvements in conditions of the leisure and entertainment. The differences in socioeconomic characteristics and ecological status of the respondents partially explain the disparity in utility from IRBM. In conclusion, the results based on only specific sub-basin of river basin may over or underestimate the welfare estimate. [ABSTRACT FROM AUTHOR]

Improvements in the ecological attributes of inland rivers have been projected to provide considerable non-market benefits, and the monetary valuation of these attributes has steadily increased over the past several decades. The present study addresses the spatial heterogeneity of the public’s preference for ecological attributes and the distance-decay effect of willingness to pay (WTP) to improve various attributes of the river basin. The results revealed that spatial heterogeneity exists among the individuals; for example, the respondents of Liangzhou County prefer a large improvement in the natural landscape, forest coverage, and eco-tourism and are willing to pay 491.89, 369.32, and 338.37 yuan per year, respectively, for one unit improvement in these ecological attributes. Similarly, the respondents of Jinchang County value and are willing to pay 447.60, 431.81, and 318.18 yuan for one unit improvement in tourism, forest coverage, and natural landscape, respectively. Furthermore, the results from the random parameter logit model show a significant distance-decay effect of the household WTP for ecological attributes. For example, the respondents living within 5 km of the river are willing to pay more money, that is, 832.61, 365.62, and 353.05 yuan per year for improving the natural landscape, water quantity, and grass cover, respectively. As the distance from the river increases, the corresponding WTP decreases, meaning that the respondents (users) living near the Shiyang River Basin are willing to pay more for ecological attribute improvement than those living far away from the river. [ABSTRACT FROM AUTHOR]

Third generation prospect theory (Schmidt et al. J Risk Uncertain 36:203-223, 2008) is a theory of choices and of judgments of highest buying and lowest selling prices of risky prospects, i.e., of willingness to pay (WTP) and willingness to accept (WTA). The gap between WTP and WTA is sometimes called the 'endowment effect' and was previously called the 'point of view' effect. Third generation prospect theory (TGPT) combines cumulative prospect theory for risky prospects with the theory that judged values are based on the integration of price paid or price received with the consequences of gambles. In TGPT, the discrepancy between WTP and WTA is due to loss aversion-losses have greater absolute utility than gains of the same value. TGPT was developed independently of similar developments by Birnbaum and Zimmermann (Organ Behav Hum Decis Process 74(2):145-187, 1998) and Luce (Utility of gains and losses: measurement-theoretical and experimental approaches. Erlbaum, Mahwah, 2000). This paper reviews theoretical and empirical findings, to show that TGPT fails as a descriptive model of both choices and judgments. Evidence refutes three implications of TGPT, but they are consistent with configural weight models (Birnbaum and Stegner, J Personal Soc Psychol 37:48-74, 1979) in which loss aversion is not needed to describe the results. In the configural weight models, buyers place greater weight on lower consequences, attributes or estimates of value compared to sellers, who place greater configural weight on higher aspects of an object or prospect. [ABSTRACT FROM AUTHOR]

To improve the public's awareness of urban air pollution and promote establishment of more efficient policy toward urban air pollution, we investigated the government employees' perceptions of current urban air pollution and their willingness to pay (WTP) taxes for improved quality in Nanchang, China. Stratified cluster sampling strategy was used to distribute 629 questionnaires, and 608 were completed anonymously, yielding a 96.7 % response rate. Descriptive statistics frequencies and proportions were used to summarize the sample characteristics, and logistic regression models were performed to assess the associations of perception of urban air quality and WTP versus demographic variables. We found low awareness of urban air pollution (34.5 %) as well as low WTP (44.9 %), especially among the middle aged people (age 30-39 and age 40-49). Our study shows that female employees have better awareness of urban air pollution but much less willingness to pay for air quality improvement. Majority of the government employees showed their support to the government for more effective policies toward environmental protection, indicating more enhanced public education and environmental protection campaigns to improve the public's awareness of air pollution and work with every citizen to improve air quality. This study also obtained baseline information useful to the local regional and even national government in developing nations in their attempt to control urban air pollution in future. [ABSTRACT FROM AUTHOR]

Background: Economic evaluation focuses on Quality-Adjusted-Life-Years (QALYs) as the main valuation method. However, it is well known that factors beyond health related quality of life are important to patients and the public. Whilst discrete-choice-experiments (DCE) have been extensively used to value such factors, their incorporation within an economic evaluation framework is limited. This study is the first to incorporate patient preferences for factors beyond QALYs into an economic evaluation and compare results with the standard cost-per-QALY approach, using randomised-controlled-trial (RCT) participants. Methods: Costings, clinical-effectiveness (appropriateness-of-treatment), QALYs and patient satisfaction data were collected at baseline and 12-month follow-up for a new pharmacy-service within a randomised-controlled-trial. Trial participants who replied to the follow-up survey and had not subsequently withdrawn from the study were mailed a DCE questionnaire at 24-months. WTP for the standard and new service was derived from the DCE. Results from QALYs and the DCE were compared. Results: At 12 months, costs, clinical-effectiveness and QALYs did not differ between the intervention and control; however there was a significant increase in satisfaction in the intervention. The DCE valued this increased satisfaction in the intervention (positive net-benefit). The longer the time patients experienced the new service the greater the reported net-benefit. Conclusion: When incorporating a DCE into an economic evaluation a number of questions are raised: what factors should be valued, whose values (trial-groups vs. all-trial-population) and when should they be elicited (still-receiving-the-intervention or afterwards). Consideration should also be given to status quo bias. [ABSTRACT FROM AUTHOR]

This study empirically estimates farmers' willingness to pay (WTP) for a planned adaptation programme for addressing climate issues in Pakistan's agricultural sectors. The contingent valuation method (CVM) was employed to determine a monetary valuation of farmers' preferences for a planned adaptation programme by ascertaining the value attached to address climatic issues. The survey was conducted by distributing structured questionnaires among Pakistani farmers. The study found that 67 % of respondents were willing to pay for a planned adaptation programme. However, several socioeconomic and motivational factors exert greater influence on their willingness to pay (WTP). This paper specifies the steps needed for all institutional bodies to better address issues in climate change. The outcomes of this paper will support attempts by policy makers to design an efficient adaptation framework for mitigating and adapting to the adverse impacts of climate change. [ABSTRACT FROM AUTHOR]

This paper estimates Malaysian farmers' willingness to pay (WTP) for a planned adaptation programme for addressing climate issues in the Malaysian agricultural sector. We used the contingent valuation method (CVM) for a monetary valuation of farmers' preferences for a planned adaptation programme by ascertaining the value attached to address climatic issues in the Malaysian agricultural sector. Structured questionnaires were distributed among the sampled farmers. The study found that 74 % of respondents were willing to pay for a planned adaptation programme and that several socioeconomic and motivation factors have greater influence on their WTP. This paper clearly specifies the steps needed for all institutional bodies to better address issues in climate change. The outcomes of this paper will support policy makers to better design an efficient adaptation framework for adapting to the adverse impacts of climate change. [ABSTRACT FROM AUTHOR]

Groundwater can be used directly or indirectly and any decline in hs quality or quantity may negatively impact the environment. Through groundwater valuation, people are made aware of the fact that groundwater is not free of charge and therefore the significance of groundwater preservation is established. In this study, groundwater quality preservation value has been estimated for the city of Yazd based on the contingent valuation method (CVM). The methodology used consisted of field study and library research. After determining the sample size using Cochran's formula, the distributed questionnaires were filled by the inhabitants of the city of Yazd. Thereafter, the results were analysed using Excel and EViews. Finally, people's willingness to pay for the preservation of Yazd groundwater quality was estimated to be US$18.5 annually per capita, which is a remarkable value. Hence, it was determined that groundwater quality preservation was of great value to the inhabitants of Yazd [ABSTRACT FROM AUTHOR]

Despite widespread concerns and elevated policy debates, little is known about the Chinese public's perceptions of water pollution and willingness to cooperate with government policies. Based on survey data, this study examined Lake Tai resident perception of water pollution, willingness to pay (WTP) for water quality improvements, and its influencing factors. Contingent valuation (CV) results showed that respondents would prefer to pay 141 CNY per household a year, approximately 0.70% of their annual per capita disposable income, as an environmental fee to improve water quality in Lake Tai. Aggregate WTP for all five lakeside cities of Lake Tai was estimated at about 3.8 billion CNY, without discounts, in the next ten years. WTP was found to increase with income and female respondents were willing to pay more than males. Those respondents who were dissatisfied with water quality were more likely to pay more. The usage of Lake Tai did not strongly affect WTP. [ABSTRACT FROM AUTHOR]

Summary: In Spain, various treatments are available to prevent osteoporotic fractures. A discrete choice experiment (DCE) was used to investigate the importance of different treatment aspects and its influence on patients' preferences. All attributes included as type and place of drug administration as well as costs showed to be significant predictors of choice. Spanish osteoporosis patients have well-defined preferences and accept trade-offs among attributes. Introduction: This study was designed to identify patient preferences for different aspects of osteoporosis treatments in Spain. Methods: Main attributes of severe osteoporosis treatments were determined by literature review and consultations with nurses. The discrete choice experiment included three attributes: type of drug administration, place of administration, plus a cost attribute in order to estimate willingness to pay for improvements in attribute levels. A pilot study with 50 patients was performed to identify the areas of misunderstanding. One hundred sixty-six patients with a diagnosis of osteoporosis and severe osteoporosis were presented with pairs of hypothetical treatment profiles with different type of administration levels, places of administration and costs. Questions to collect socio-demographic and disease-related treatment data were also included. Data were analysed using a random effects probit model. Results: All attributes had the expected polarity and were significant predictors of choice. Patients were willing to pay 183 €/month to have a subcutaneous injection once per day rather than an intravenous injection once per year. Patients with osteoporosis were willing to pay 121 €/month to have medical support when administering the drug treatment at home rather than being admitted several hours to a hospital for drug administration. Conclusion: Spanish osteoporosis patients have well-defined preferences among treatment attributes and are willing to accept trade-offs among attributes. Participants indicated that they are willing to accept self medication with medical support rather than being hospitalised for several hours. The perspective of the patients should be taken into account when making treatment decisions. [ABSTRACT FROM AUTHOR]

This paper analyzes time discounting as a function of risk, using reservation prices. Based on experimental data, we compare bidder reservation prices for riskless assets with those for risky assets. The experiments rely on a second price auction with real monetary incentives and real delay in payoffs. We estimate the pure time discount rate for different maturities, considering riskless assets (bonds) and risky assets (delayed lotteries). An innovation in the experimental design allows disentangling pure time from pure risk discounting effects. If subjects bid for assets, we find implied discount rates for risky assets to be uniformly lower than those for riskless assets, across all maturities (the risk moderation effect). However, there is no risk moderation effect if subjects quote ask prices. We argue that delaying a payoff has a stronger effect on the price of bonds than on the price of risky assets since, in the case of bonds, the investor moves from a position of certainty to a position of risk, or uncertainty. Our findings on the risk moderation effect may be used to explain the attractiveness of compensation contracts with options, as commonly used in the financial industry. [ABSTRACT FROM AUTHOR]

World heritage possesses various kinds of use value and non-use value. Measuring the recreational value of world heritage sites is a key issue in the heritage tourism. This paper employs Contingent Valuation Method (CVM), which is an evaluation instrument on the basis of tourists' attitude and preference, to measure the recreational value of Jiuzhaigou, one of the World Natural Heritage sites in China, and analyzes the biases in the survey. The results show that: 1) In 2009, Jiuzhaigou's recreational value was 3.46×10 yuan (RMB), and the per capita Willingness to Pay (WTP) was 137.31 yuan by CVM. Compared with the results of other methods, this result is significantly low. 2) Among the factors that influence Jiuzhaigou tourists' WTP, psychological perception factors have the greatest effect while demographic and socio-economic characteristics have a small effect on WTP. 3) The virtuality in CVM creates biases both from CVM itself and in the procedures that CVM was implemented. The former includes hypothetical bias, information bias, protest response bias, and strategic bias; and the latter includes the questionnaire design, population and sample definition, sampling and data processing. The paper analyses those biases and illustrates their potential influences on the accuracy of CVM measurement. 4) Although there are various defects in CVM measurement, it is still an effective valuation method. [ABSTRACT FROM AUTHOR]

Hara Biosphere Reserve in southern Hormozgan province with 85686 hectares areas is located between Bandar Khamir and Queshm Island. This area can be considered as the most spectacular regions of Iran for a unique coastal Seascape. Mangrove forests and amazing biodiversity make this region as the most significant ecotourism areas throughout the country. This research attempts to determine recreation value of Mangrove forests and willingness of the tourists to pay for ecotourism areas using Contingent Valuation Method and dichotomous choice questionnaire. Socio-economic assessment of the study area was carried out through the analysis of the touristfilled questionnaires in 2006 based on proper and logical time and place distribution. Logit model was used to determine the willingness of individuals, because the model's parameters are based on methods of Maximum likelihood. Results show that 81.2 % of the individuals are willing to pay for recreation value forms of Mangrove forests. The annual average Willingness-to-Pay for this region is us 5 per visit. Moreover, the annual economic value of Mangrove forests was estimated us 97.5/ acre which shows Existence values of these kinds of forests and also the necessity for planning to employ the recreation capabilities in the study area. [ABSTRACT FROM AUTHOR]

Patients with moderate to severe allergic asthma have persistent poorly controlled asthma despite inhaled or systemic corticosteroid therapy. New therapies are becoming more widely available to treat such patients, but their value needs to be formally assessed in an economic evaluation. Within a publicly funded health care system such an analysis should reflect societal preferences when measuring treatment benefits. The aim of this study was to elicit societal preferences for the symptom burden associated with moderate to severe allergic asthma. Existing daily symptom diary data from a clinical trial were used to develop health state descriptions for evaluation in a standard gamble interview. Five health states were produced that reflected five distinct levels of control ranging from ‘complete control of asthma’ to ‘worsening of asthma’, as defined by another outcome measure. The symptom diary data were also used as attributes in a discrete choice experiment (DCE) to estimate willingness to pay for improvements in symptoms. Members of the general public ( n = 101) completed the interview. Thirteen participants failed the consistency checks and were excluded from the analysis. Societal utility ratings for the health states ranged from 0.71 (worsening of asthma) to 0.78 (complete control of asthma). The participants were also willing to pay £160 a month for the avoidance of all symptoms. The range of utility values (0.71–0.78) demonstrates the severity of moderate to severe allergic asthma. However the spread of scores between complete control of asthma and worsening of asthma was lower than was expected. The community sample placed only a moderate value on the avoidance of all asthma symptoms in the DCE survey. The results suggest that the community sample may not have fully understood the benefits of control over asthma symptoms and the limitations such symptoms can impose on everyday life. [ABSTRACT FROM AUTHOR]

A valid procedure for measuring consumers’ willingness to pay (WTP) is crucial in designing optimal pricing policies or for estimating demand for new products. Understanding potential sources of differences in WTP estimates that emerge from value elicitation studies constitutes an important step in research on how managers should estimate consumers’ WTP. This research presents an empirical analysis of two potential sources of differences and discusses possible means of mitigating them. We find substantial and significant differences between the WTP reported by subjects when payment of the stated price is real or hypothetical. Notwithstanding the dichotomy between real and hypothetical WTP, we find significant differences among the WTP estimates of a broad range of value elicitation methods. [ABSTRACT FROM AUTHOR]

Municipalities everywhere are coping with increasing amounts of solid waste and need urgently to formulate efficient and sustainable solutions to the problem. This study examines the use of economic incentives in municipal waste management. Specifically, we address the issue of recycling, if and when this waste management option is-on social welfare grounds-a preferred solution.A number of studies have recently assessed the monetary value of the externalities of alternative solid waste management options. In the present context, these subsidies could be interpreted as the implicit value of the benefits from reducing environmental externalities associated with landfilling as perceived by local government authorities. We surmise that the difference between mean households’ willingness to pay (WTP) for recycling services, via the purchase of a subsidized waste disposal facility, and the above (proxy) value of externalities reflects the difference between private and public perception regarding the negative externality associated with landfilling. We believe that this information is useful in determining the level of subsidization needed (if at all) to sustain any recycling program.The study is unique in the sense that its conclusions are based on revealed household behavior when faced with increased disposal costs, as well as information on WTP responses in hypothetical but related (and, therefore, familiar) scenarios. The article also explores the influence of the subsidization schemes on recycling rates. It was found that with low levels of effort needed to participate in a curbside recycling program, households’ participation rates are mainly influenced by economic variables and age, and households are willing to pay a higher price for the recycling scheme. When the required effort level is relatively high, however, households would pay a lower price, and the rate is influenced mainly by their environmental commitment and by economic considerations. We found that in both cases a subsidy would be required in order to achieve an efficient level of recycling. The median price that households are willing to pay for recycling devices is found to be about NIS 370 (New Israeli Shekel, approximately $90). [ABSTRACT FROM AUTHOR]