Environmental Economics and Management Theory, …：环境经济学和管理学理论，….ppt

Applications of the Damage Function Method Used for measuring a specific type of incremental benefit, as opposed to performing a comprehensive benefit assessment. It is usually used where market-determined prices are available to monetize the gain. Application 7.3: Valuing Agricultural benefits: The Case of Tropospheric Ozone Reductions Applications of CVM Estimation of the value of a statistical human life: $3.2 million to $8.0 million ($2010). Estimation of society’s WTP for water quality improvements. Smith and Desvousges (1986): $60 ($2010) per year to improve the Monongahela River from botable to fishable quality; average household in five western Pennsylvania counties. Applications of CVM Carson and Mitchell (1988): nationwide survey; $175 ($2010) per year for water quality improvements. How can the difference be explained? The difference may be attributable to existence value. Applications of CVM Abrahams, Hubbell, and Jordan (2000) used the AEM to estimate the annual benefits to Georgia residents associated with safer drinking water. Measured changes in the residents’ spending on bottled water and water filters. An individual’s WTP: $67 ($2010) per year Total benefits to Georgia: $495 million ($2010) Applications of the TCM Because of its limitations, the TCM is commonly used to value improvements to water bodies used mainly for recreation. Consider the following results (WTP per person per day in 2010 dollars) from three independent analyses. Vaughan and Russell (1982): $10.58 - $21.17 Smith and Devousges (1985): ) 0.14 -$67.61 Smith, Desvousges, and McGivney (1983): $2.35 -$4.86 Applications of the TCM The estimates tend to vary considerably. Why? Reason: TCM estimates tend to be sensitive to the site under study. Demographic variables across regions can be controlled. But other site differences, such as aesthetics, acess to major highways, and substitute recreational opportunities, are difficult to quantify and control. So, it is unlikely that TCM can de