Search Results (367)

Drylands cover approximately 41% of Earth’s land surface, supporting about 500 million people and 45% of global agriculture. Groundwater is essential in drylands and is crucial for maintaining ecosystem services and offering numerous benefits. This article, for the first time, analyses and valuates the hydrological ecosystem services (HESs) provided by groundwater in a region of the Colorado River Delta in Mexico, an area with uncertain economic impact due to water scarcity. The main water sources are the Colorado River and groundwater from the Mexicali and San Luis Rio Colorado valley aquifers, both of which are overexploited. Valuation techniques include surrogate and simulated market methods for agricultural, industrial, urban, and domestic uses, the shadow project approach for water conservation and purification cost avoidance, and the contingent valuation method for recreation. Data from 2013 to 2015 and 2020 were used as they are the most reliable sources available. The annual value of HESs provided by groundwater was USD 883,520 million, with water conservation being a key factor. The analyzed groundwater uses reflect differences in efficiency and economic value, providing key information for decisions on governance, allocation, conservation, and revaluation of water resources. These results suggest reorienting crops, establishing differentiated rates, and promoting payment for environmental services programs. Full article

The Gahai wetland in Gansu, China, is a key wetland for nationally and globally threatened bird species. This research aims to quantify the economic value of wetland birds by the method of contingent valuation questionnaire, thereby providing a foundation for conservation of avian species. The result indicated that residents were willing to pay between 208 and 230 CNY (29–32 USD $) annually for bird protection, a total annual value of wetland birds in Luqu County ranging from 7.9 M to 8.8 M CNY (1.1–1.3 M USD $). Men, locals, and older individuals were more inclined to contribute and offered higher payments, albeit non-significant correlation between education level and annual income with the willingness to pay. While the depth of understanding of wetland pressures did not significantly influence the willingness to pay, it did show a positive correlation; those with more profound understanding tended to be more generous in their payments. Tibetan male residents were more likely to prioritize ecological and environmental protection due to their religious beliefs and cultural customs, which emphasize the reverence for and compassion towards birds. This research not only complemented and validated the applicability of the contingent valuation method in China but also underscores the considerations that should be taken into account when employing this method. Full article

Grassland communities consist primarily of perennial herbaceous species, with grasses forming a dominant or significant component. These ecosystems have been utilised for economic purposes since the earliest periods of human history. In the natural environment, they fulfil numerous critical functions that, despite increasing awareness of climate change, often remain undervalued. Grasslands contribute directly to climate regulation, air purification, soil conservation, flood mitigation, and public health—all of which positively affect the well-being of nearby populations. Moreover, they satisfy higher-order human needs known as “cultural” services, providing aesthetic enjoyment and recreational opportunities. These services, in tangible terms, support the development of rural tourism. The objective of this study was to examine the perception of cultural ecosystem services provided by different types of grassland communities—meadows, pastures, and lawns. The study employed a structured questionnaire to evaluate the perceived significance and functions of these communities. Respondents assessed their aesthetic and recreational value based on land-use type. To quantify these dimensions, the study applies the Recreational and Leisure Attractiveness Index (RLAI), the Aesthetic Attractiveness Index (AAI), ranking methods, and contingent valuation techniques. Based on the respondents’ declared WTP (willingness to pay) and WTA (willingness to accept) values, statistically significant differences in the perceived value of land-use types were identified. Lawns were rated highest in terms of recreational attractiveness, meadows in terms of aesthetics, while pastures achieved the highest economic values. Significant differences were also observed depending on respondents’ place of residence and academic background. The results indicate that the valuation of cultural services encompasses both functional and psychological aspects and should be integrated into local land-use and landscape planning policies. Full article

This paper analyzes the factors affecting the willingness to pay of urban households concerned with efficient waste management in Bangladesh. The multistage random sampling approach selected 1400 families from seven major cities in Bangladesh. This study addresses the socioeconomic and environmental factors that influence urban households’ willingness to pay for improved waste management services in Bangladesh. This study uniquely contributes to the literature by providing a large-scale empirical analysis of 1470 households using a logit model, revealing income, education, and environmental awareness as key predictors of WTP. Detailed survey data from respondents were then analyzed using a logit model based on the contingent valuation method. Indeed, the logit model showed that six variables (education, monthly income, value of the asset, knowledge of environment, and climate change) had a statistically significant effect on the WTP of the households. The results show that 63% of respondents were willing to pay BDT 250 or more per month. The most influential factors driving this willingness to pay were income (OR = 1.35), education level (OR = 1.45), and environmental awareness (OR = 3.56). These variables all contribute positively towards WTP. The idea is that families have some socioeconomic characteristics, regardless of which they are ready to pay for a higher level of waste collection. It is recommended that government interference be affected through various approaches, as listed below: support for public–private sector undertaking and disposal, an extensive cleaning campaign, decentralized management, cutting waste transport costs, and privatization of some waste management systems. These could be used to develop solutions to better waste management systems and improve public health. Full article

Herein, we further examine how we can value nonmarket goods and services by considering the costs associated with environmental conflicts. Focusing on two American rules—the asymmetric reimbursement system and the contingent fee contract—we develop a strategic game-theoretic model in which a citizens group engages a delegate through a contingent fee compensation contract, while a polluter engages a delegate through an hourly fee compensation contract. If the citizens group prevails, the polluter is obligated to contribute a portion of the contingent fee. Solving for the subgame perfect equilibrium, two results emerge. First, the 4x-rule can be maintained through the adjustment of the asymmetric reimbursement system. Second, the asymmetric reimbursement system can serve both as a supplementary method to measure nonmarket valuation and to reduce the rent dissipation resulting from environmental conflicts under general circumstances. Full article

There is increasing evidence of the benefits of natural environments for human health. Interest is growing in nature-based therapy (NBT), organised initiatives that promote human–nature interactions with the aim of achieving positive health outcomes. Although the benefits of spending time in nature are now widely recognised, the public’s perspective of NBTs is still not well understood nor quantified. At the same time, chronic non-communicable diseases such as cardiovascular disease are on the rise, increasing costs and pressure for public health services. Using a sample of 96 respondents in Italy, this exploratory study investigates the economic value and perceptions of an NBT for cardiovascular disease. We employed the contingent valuation method to estimate marginal willingness to pay (WTP) for a nature-based rehabilitation programme compared to a standard indoor clinic-based programme. Logistic regression was used to estimate median WTP and influencing factors. We investigated the preferences of patients for the features and potential benefits of nature-based rehabilitation. We show that patients with cardiovascular disease in Italy have a positive WTP between EUR 14.01 to EUR 42.69 per day (median value EUR 27.26). Our findings indicate that NBTs could offer a promising alternative to standard indoor programmes. We provide recommendations for designing NBTs based on the preferences of our sample, aiming to contribute to sustainable health and land management policies. Full article

Understanding the economic value of natural resources is essential for the sustainable management of national parks. However, most existing studies focus on single conservation objectives and overlook the valuation of multiple resources within the same ecosystem. This study estimates tourists’ willingness to pay (WTP) for the conservation of four natural resources—crab-eating macaques, coral reefs, dry evergreen forests, and clean air—within Khao Laem Ya-Mu Ko Samet National Park in Thailand. Using the contingent valuation method and seemingly unrelated regression (SUR) analysis, data were collected from 205 tourists using structured surveys. The results show that dry evergreen forests received the highest average WTP (THB 129/year), followed by coral reefs (THB 125), clean air (THB 110), and crab-eating macaques (THB 107). At the population level, aggregate annual WTP values ranged from THB 85.7 million to THB 103.2 million across the resources. Age and awareness levels were consistent positive predictors of WTP, while other influencing factors—such as education, income, nationality, and residential location—varied by resource type. The findings provide empirical insights for designing resource-specific conservation strategies and highlight the potential of economic valuation to support sustainable financing mechanisms and policy development for protected area management. Full article

This study is one of the first empirical attempts to quantify the social benefit of virtual power plants (VPPs) in South Korea using the contingent valuation method (CVM). As Korea pursues its ambitious carbon neutrality goal by 2050, VPPs have emerged as a critical technology for managing the intermittency of renewable energy sources and ensuring grid stability. Despite their recognized technical potential, the social and economic value of VPPs remains largely unexplored. Through a nationwide survey of 1105 households, we employed a double-bounded dichotomous choice spike model to estimate willingness to pay (WTP) for government-led VPP implementation. The analysis revealed two distinct dimensions influencing VPP valuation: electricity bill perceptions and electricity generation mix preferences. Results indicated that Korean households exhibited significant but heterogeneous WTP for VPP implementation, with unconditional mean annual WTP ranging from KRW 23,474 to KRW 26,545 per household. Notably, support for renewable energy transition showed stronger positive effects on WTP compared to nuclear expansion preferences, suggesting VPPs are primarily valued as renewable energy enablers. The substantial spike probability (32–34%) indicated that approximately one-third of the population has zero WTP, highlighting challenges in introducing novel energy technologies. Key determinants of positive WTP included perceived fairness of electricity pricing, support for market-based mechanisms, and preferences for transitioning from coal and nuclear to renewables. These findings provide critical policy insights for VPP deployment strategies, suggesting the need for phased implementation, targeted communication emphasizing renewable integration benefits, and coordination with broader electricity market reforms. The study contributes to energy transition economics literature by demonstrating how public preferences for emerging grid technologies are shaped by both economic considerations and environmental values. Full article

Mangrove ecosystems are vital for coastal protection, fisheries, biodiversity, and local livelihoods, yet they are increasingly threatened by land-use changes, climate impacts, and limited conservation funding. This study investigates how much local communities are willing to pay (WTP) to conserve the Chwaka Bay mangrove forest in Zanzibar. Using the Contingent Valuation Method (CVM) with a payment card approach, we conducted a structured household survey to assess both monetary contributions and the psychological and socioeconomic factors influencing them. This study is guided by Ajzen’s Theory of Planned Behavior (TPB), incorporating attitudes, subjective norms, perceived behavioral control, and mangrove knowledge. The results show that 68.2% of respondents are willing to pay for mangrove conservation, while 24.2% are not—mainly due to financial constraints or skepticism about fund use. Key drivers of WTP include perceived ecological and livelihood benefits, environmental awareness, and prior conservation involvement. Statistical validation using the Kaiser–Meyer–Olkin (KMO) test and Bartlett’s test of sphericity confirmed the reliability of the model. The findings demonstrate the value of combining behavioral theory with economic valuation to better understand and support community-based conservation strategies. This approach can inform policymakers in designing targeted, transparent, and inclusive mangrove protection programs. Full article

In an acquisition, an earnout is a component of transaction price that is contingent upon future events. Despite its usefulness to acquirers in mitigating valuation risk, using an earnout also has a potentially undesirable tax consequence for the acquirer because there is no immediate step-up in tax basis for the earnout portion of deal consideration until the resolution of associated contingencies. We thus hypothesize that acquiring firms with high marginal tax rates (MTRs) are less likely to use earnouts. We analyze a sample of taxable acquisitions by U.S. public companies, holding constant other non-tax determinants of earnout use from prior research, and we find results consistent with our prediction. We also find some evidence that strong tax incentives can offset the effect of target valuation uncertainty, suggesting that acquiring firms facing sufficiently high MTRs are willing to trade off mitigating valuation risk for a full, immediate step-up in tax basis. We contribute to the prior literature on determinants of earnout use as well as the role of tax planning incentives in firm choices within mergers and acquisitions. Full article

Reducing damage caused by power outages is important against the background of severe natural disasters. Estimating the value of lost load (VoLL) is key to making an optimal investment plan for power systems. This paper aims to estimate the recent residential VoLL in Japan by using a survey. The contingent valuation method quantifies the residential willingness to pay (WTP) and its distribution in a 2 h outage during summer. When combining actual demand data, the VoLL is estimated at 501.1 JPY/kWh for a predictable outage and 559.9 JPY/kWh for a sudden one. In addition, the random utility model reveals the effect of people’s attributes on WTP. Larger annual incomes and electricity bills significantly increase WTP. Evacuation experiences and stockpiles also affect WTP in a sudden outage. Finally, 80% of respondents answered that refrigerators, air conditioners, and water supplies are important during outages. Full article

The “Rural Toilet Revolution” is a pivotal initiative aimed at improving living conditions and health standards in rural China. Utilizing data from 683 questionnaire responses from rural residents across China, this study constructs a multi-stakeholder collaborative governance system and delves into the current state of rural toilets, assesses the average willingness of rural residents to invest in toilet upgrades, and identifies key factors influencing their financial commitment to such renovations. The findings reveal that the average willingness to pay for the modernization of sanitation facilities is CNY 791 (approx. USD 110), constituting approximately 26.37% of the actual renovation costs, and the ratio of government and residents’ contributions can be determined as 3:1. Moreover, a positive correlation was observed between the frequency of toilet cleaning and the propensity to invest in upgrades, highlighting a heightened awareness of hygiene risks among those prioritizing sanitation. Conversely, satisfaction with existing toilets inversely affected the willingness to pay for improvements, indicating that contentment with current toilets diminishes the likelihood of participation in renovation initiatives. Additionally, previous engagement in toilet renovation programs emerged as a significant predictor of continued willingness to contribute financially to the “Toilet Revolution”, underscoring the positive impact of prior renovation experiences. Full article

This study examined Korean anglers’ willingness to pay (WTP) for the establishment of a Recreational Fishing Environment Fund (RFEF), aimed at mitigating the environmental impacts of recreational fishing on marine resources. As recreational fishing has expanded in Korea, concerns have grown over its negative effects on fishery resources and coastal pollution. Addressing these issues requires sustainable policy interventions, with financial support from stakeholders. To estimate anglers’ WTP for such a fund, a vignette survey was conducted in February 2024 among 1000 South Korean adults with experience or interest in recreational fishing. Using the Double-Bounded Dichotomous Choice Contingent Valuation Method (CVM), the present study estimated an average annual WTP of USD 8.18 per person. These findings provide essential data for designing coastal and ocean environmental policies based on the beneficiary pays principle, offering a financial framework to support conservation efforts and regulatory measures. The results highlight the potential for angler-funded environmental initiatives and can inform policymakers on the feasibility of implementing a dedicated fund for sustainable recreational fishing management. Full article

Bolivia’s national parks, with their rich biodiversity and natural landscapes, have great potential to contribute to their own financial sustainability, and tourism is one of the most promising sustainable activities that can make this possible. Entrance fees to national parks are a vital source of income for the National Service of Protected Areas, yet a significant financial gap remains. This study estimates tourists’ willingness to pay (WTP) for increased entrance fees in two protected areas, comparing data from 2019 and 2023 to assess the effect of COVID-19 on WTP. Using the contingent valuation approach, we found that tourists’ profiles and their WTP have shifted between 2019 and 2023. However, there was no consistent trend across the protected areas, highlighting the challenges and specific impacts of the pandemic on tourists WTP. Nevertheless, the findings can help inform pricing strategies aimed at enhancing the financial sustainability of Bolivia’s protected areas, supporting broader conservation goals both nationally and globally. Full article

Chinese cities have made significant progress in fostering low-carbon societies and piloting a variety of low-carbon measures. Nonetheless, the effective implementation of these initiatives and the long-term upkeep of related amenities rely heavily on resident support. The existing studies provide limited insight into how local residents perceive and endorse different types of low-carbon measures, which often involve varying trade-offs. Addressing this gap, the present study surveyed the willingness to pay (WTP) of residents in Hangzhou—an early adopter of low-carbon practices in China—across five representative low-carbon measures. Survey data were collected from 13 distinct residential neighborhoods. The results indicate that Hangzhou residents are more inclined to financially support measures offering direct personal benefits compared to those benefiting the collective good, with this tendency being notably pronounced among highly educated individuals. Further findings include the following: (1) respondents aware of ongoing low-carbon measures were more willing to pay for them; (2) male respondents, recent migrants (within the past five years), high-income groups, and residents in aging communities tended to contribute higher amounts; (3) providing detailed information on carbon mitigation effects markedly increased both the likelihood and the magnitude of WTP; (4) the promotion of new energy vehicles (NEVs) remains contentious, particularly between NEV owners and gasoline vehicle owners. These findings highlight the need for targeted policies and educational programs to strengthen public awareness and support for low-carbon interventions, thereby advancing sustainability in fast-growing urban centers like Hangzhou. Overall, these findings provide key insights for the formulation of low-carbon city policies and sustainable urban planning, emphasizing the global importance of local socioeconomic dynamics and offering a valuable reference for cities worldwide seeking to advance sustainability transitions and meet international climate targets. Full article