Floods often displace people and exacerbate their access to finance, affecting the livelihood of daily wage workers in least-developed countries. In August 2017, Nepal experienced the heaviest rainfall in more than 60 years, severely flooding about 80 per cent of the land in the southern part of the country. Using the two-way fixed effects approach and an event study design, we evaluate the impact of severe flooding on the wages of agricultural workers. We show that the 2017 floods resulted in a 9–10 per cent decrease in cash wages among agricultural households while in-kind wages of agricultural laborers increased significantly after the floods, implying that in-kind wages helped mitigate the adverse effects of floods on cash wages. We also investigate changes in assistance, loan-seeking behavior, loan repayment, and collection behavior as mechanisms leading to the risk-mitigating behavior by farmers.

This paper hypothesizes that respondents in contingent valuation surveys may form different benefit and cost levels that deviate from the levels specified by the researcher. The conceptual framework investigates potential biases based on the direction of deviations. Survey data on the restoration of wetlands in Tampa Bay show that a significant portion of the respondents deviate from the benefit and cost levels presented in the scenario. Empirical results indicate that willingness-to-pay (WTP) estimates are very sensitive to the perceived benefit and cost levels. Depending on the direction of the deviations, WTP estimates could fluctuate up to +61 percent and −82 percent, compared to the estimate from those who evaluate the scenario at the presented levels.

Compromised kidney function is associated with an array of environmental contaminants and pathogens that may be considered for regulation. However, there are few valuation estimates for kidney effects for use in benefit–cost analyses, particularly willingness-to-pay estimates. This paper is one of several surveys valuing morbidity developed by the OECD Surveys to elicit Willingness-to-pay to Avoid Chemicals-related negative Health Effects project, which aims to improve the basis for benefit–cost analyses. We report the results of a stated preference survey valuing reduced the risk of symptomatic chronic kidney disease, filling an important gap in the valuation literature and addressing a need for applied benefits analysis of chemical regulation. The survey was administered to representative samples in each of 10 countries: Canada, Chile, China, Denmark, Germany, Italy, Norway, Türkiye, the United Kingdom, and the United States. The mean (median) WTP for an average reduction of 3.5 in 1,000 of the risk of serious kidney disease over 5 years is $2,609 ($764), corresponding to a mean (median) value per statistical case (VSC) of chronic kidney disease of $805,000 ($224,000). The mean VSC varies between $700,000 for Canada and $1,200,000 for Türkiye.

Based on a contingent valuation method survey on air quality improvement in northern China, we construct several subjective perception determinants of respondents' valuation uncertainty from both the demand and perceived supply sides. Using the individual-level uncertainty measurements initially proposed by Wang and He (2011) and their alternative transformations, we analyze how these factors of demand and perceived supply sides affect people's valuation uncertainty. Our results demonstrate the significant contribution of these determinants in explaining respondents' uncertainty. On the demand side, people who ‘don't know much’ about benefits-related factors have the highest level of uncertainty, and those claiming to ‘know nothing’ most often report the lowest level of uncertainty. On the supply side, people who either do not trust or are not satisfied with the control policies tend to be more certain of their valuation. The subsequent analyses also suggest that these results be interpreted as negative certainty, which is attributed to a lack of interest.

This study develops a generalized evaluation framework that can be used to quantify the financial, economic, stakeholder, and environmental impacts of renewable energy support programs. The application of this framework is demonstrated by evaluating the feed-in tariff (FIT) program for solar distributed energy resources (DER) in Ontario, Canada. Our analysis reveals that Ontario’s FIT program has successfully promoted the adoption of solar DER across communities. However, the program has caused inequitable societal outcomes through a cross-subsidization with a present value of 9 CAD billion, paid for by the electricity consumer base for the benefit of only the 0.06 percent of electricity consumers who could install solar systems. The cost imposed on the Canadian economy ranges from 2.86 to 5.37 CAD billion, depending on the discount rate applied. The sensitivity analysis results indicate that the burden of this program on the Canadian economy would have been reduced by 50 percent if the program had been delayed and implemented in 2016 instead of 2010 due to the declining trend in solar system investment costs. The lessons from this analysis provide insights for designing future environmental and emission reduction policies.

Asthma is a non-communicable and non-curable lung disease that affects 10% of children and 4% of adults worldwide and is associated with an array of environmental contaminants and chemicals. This article offers values suitable for use in cost–benefit analyses of the willingness to pay (WTP) for reduced severity of asthma in adults and children and in reduced probability of getting asthma for these two population groups, all in the context of reducing chemical exposures. To this end, an online survey was administered between November 2021 and May 2022 to 12 727 respondents from seven countries of the Organisation for Economic Co-operation and Development (OECD). This article applies two stated preference methods for eliciting WTP: the contingent valuation method for reduced asthma severity and choice experiments for reduced probability of getting asthma of various severities. The context for such elicitations was a set of household products that contain fewer hazardous chemicals than what is currently available in supermarkets but are more expensive. The study finds that the WTP for reducing asthma severity in adults by one step, e.g. from “moderate plus” to “moderate”, is USD2022 529 per year on average. The parental WTP for reducing asthma severity in their children is USD2022 PPP 948 per year and is on average 1.8 times higher than their WTP for themselves. The mean value of a statistical case (VSC) of adult asthma which would be applied to predictions of new cases of asthma avoided by a regulation equals USD2022 280 000, while the mean VSC of childhood asthma equals USD2022 430 000.

We estimate a recreation demand model for warmwater fishing in Delaware and then use it to measure welfare gains associated with improved fishing quality as measured by catch rate of fish, diversity of species, and clarity of water. We use a “linked” site choice – trip frequency model with data gathered by the Delaware Division of Fish and Wildlife. Our site choice model includes 118 rivers and lakes in the state with detailed characteristics of each. We develop hypothetical scenarios of fishing quality improvement involving combinations of fish catch, fish diversity, and water clarity and apply it to individual water bodies, water basins, selected water body groupings, and statewide. Values are reported in seasonal per angler and aggregate terms.

We use contingent valuation to estimate hunter and trapper willingness to pay (WTP) for a hypothetical bobcat harvest permit being considered in Indiana. Harvest permits would be rationed, with limits on aggregate and individual harvests. A model of permit demand shows that WTP may be subject to “congestion effects” which attenuate welfare gains from relaxing harvest limits. Intuitively, relaxing limits may directly change an individual’s expected harvest and, hence, WTP. Participation may subsequently change, with congestion offsetting welfare increases. These effects may lead to apparent scope insensitivity that may be endemic in the context of rationed goods.

The social cost of greenhouse gases is important in many regulatory impact analyses. However, calculations of the social cost of greenhouse gases are highly complex and periodically revisited. We offer seven recommendations to improve current estimates. These include recommendations to use both country-level and global measures of the social cost of greenhouse gases, to use country-specific values for monetizing climate damages, to represent uncertainties by reporting distributions instead of using only central values, and to conduct a temporal distributional analysis that shows the magnitudes of climate damages across generations. We also provide recommendations for the discount rates that should be used when estimating the social cost of greenhouse gases, and the appropriate discount rates for regulatory impact analyses that include the social cost of greenhouse gases.

Urban green spaces are primarily recognized for their ability to provide opportunities for recreational activities. However, these spaces also offer a broader range of ecosystem services and benefits, which are often overlooked by city inhabitants and the government. This paper utilizes choice experiments to estimate the benefits derived from ecosystem services provided by undeveloped natural areas and urban parks in San José, Costa Rica. We evaluate three ecosystem services provided by undeveloped natural areas, namely habitats for animals and plants, hydrological control, and recreation. Additionally, we estimate the benefits derived from the restoration and construction of three types of urban parks: neighborhood, metropolitan, and central district parks. The results demonstrate that individuals place significant value on the restoration of undeveloped natural areas and urban parks. The findings also indicate variations in the valuation of ecosystem services between undeveloped natural areas and different park types, as well as among households.

The use of stated preference methods with monetary payments in developing countries can be problematic as barter and paying with labor are common in rural areas. In response, a growing number of stated preference studies explore using monetary and nonmonetary payment options. We contribute to this literature by exploring the impact of monetary vs. labor payment options on values elicited from choice experiment studies conducted in rural developing country settings. We also contribute to the literature by comparing data-gathering methods, specifically individual surveys vs. group information sessions. Our application is the restoration of an ancient irrigation system known as cascading tank systems in Sri Lanka. We conduct a choice experiment to understand the willingness to pay/willingness to contribute of rural households to restore these irrigation systems. We find that in the individual survey setting, there are no significant differences between monetary and labor payments. We also find that there is no difference between the group and individual survey settings for the monetary payment treatment. For the labor payment treatment, the group setting results in a positive payment coefficient for the labor payment attribute. This highlights that labor payments should be used cautiously in group evaluation settings.

In addition to effects from greenhouse gases, climate change is affected by short-lived climate forcers (SLCF). These are often co-emitted with carbon dioxide, and some are regulated air pollutants. In the governance of these pollutants, established estimates of damage costs of pollution inform benefit–cost analyses. However, climate change impact of SLCFs is omitted from these estimates. The purpose of this study is to calculate economic damage costs of air pollutants’ effect on climate change and compare these with established damage costs. Focus is on European emissions governed in the EU National Emission Reduction Commitments Directive during 2020–2050. We use well-known SLCF emission metrics and multiply with literature values on social costs of methane to calculate climate damage costs of SLCFs. The results indicate that average absolute climate damage costs are highest for black carbon ($59,500/ton in 2050) and lowest for nonmethane volatile organic compounds ($661/ton). Our indicative values are likely underestimations. Indicative climate damage costs are usually lower than established damage costs, with notable exceptions. We propose that more detailed studies are necessary, and that inclusion of climate damage costs into economic valuation of SLCFs is important for future air pollution and climate benefit–cost analyses.

We estimate the benefits of the saturated thickness (water-bearing porous material) of the alluvial aquifer in Arkansas through an application of the hedonic price model to the sale of agricultural land. There is evidence from the first-stage analysis of diminishing returns from increasing saturated thickness. Using a survey of farmer operators’ preferences and socioeconomic characteristics, we recover the underlying demand function for saturated thickness in a second-stage analysis. Shifts in the demand function reveal that produced/social capital can be a substitute or a complement to saturated thickness, and human capital is a substitute for saturated thickness.

This paper presents research on the benefits of removing legacy pollutants in Great Lakes Areas of Concern (AOCs). AOCs are heavily polluted coastal locations identified as priorities for restoration under the Great Lakes Water Quality Agreement (GLWQA) between the United States and Canada. Legacy pollutants pose a human and environmental health risk that can limit opportunities for redevelopment, recreation, and wildlife habitats. The AOC program improves water quality through remediation and restoration projects, which may increase the desirability of living in proximity to AOCs. In this paper, we estimate the economic benefit of cleaning up part of the Milwaukee Estuary AOC with a two-part sorting model using panel data on neighborhood populations and moving decisions before and after a series of remediation actions. Our results provide evidence that residents value remediation, though estimates are sensitive to the definition of the cleanup area. The average annual benefit for a household living near the AOC just downstream of cleanup is $268, with a range of $28-$499 depending on their race and tenure group; the aggregate benefit is $350 million. Results indicate a large difference in benefits between renters and owners but statistically insignificant differences between race groups.

Regulatory impact analyses of proposed environmental, occupational, and consumer product safety regulations often rely on a metric known as the Value per Statistical Case of Cancer (VSCC), that is, the public’s willingness to pay (WTP) for reductions in the risk of developing cancer. In this paper, we ask whether the VSCC depends on cancer survival prospects. We develop a simple theoretical model that shows that under standard assumptions the VSCC is decreasing in the chance of surviving cancer. We empirically test this prediction by means of a stated preference survey, where we ask subjects aged 45–60 from the general population in the Czech Republic to report information about their WTP for reductions in the risk of getting cancer. One half of the sample was told that, if they got cancer, the 5-year survival rate was 60 % (corresponding to the average survival chances across all types of cancer), while the other half was told that it was 75 %. Consistent with the theoretical model, we find that the VSCC is larger in the former group. The ratio between the VSCC of the two groups is approximately equal to the ratio between the conditional cancer mortality risks implied by the survey’s survival rates, suggesting that the VSCC is proportional to conditional cancer mortality. Our findings have important policy implications in the context of regulations that focus on pollutants linked to cancers with different chances of survival.

Have people in China moved from more polluted cities to less polluted ones? We merge city-level air pollution data from 2003 to 2016 with migration data from a nationally representative sample. We estimate a linear model and a conditional logit model, and employ air pollution from distant sources carried by the wind as an instrument for local air pollution to address the potential concern that air pollution is endogenous to local economic activities. We make a distinction between out-migration that left some family members behind and whole-household out-migration, and discover that the former was more responsive to air pollution than the latter. The decline in net in-migration in response to an increase in air pollution was driven by both a decrease in gross in-migration and an increase in gross out-migration. We find suggestive evidence that out-migrants brought their children with them, but some aged parents were left behind.

In recent years, ‘environmental economics’ has provided the dominant logic underpinning policies for ‘sustainable development’ in the form of government managed price-based and rights-based mechanisms. The advocacy of property rights in environmental management is taken further in the libertarian ‘free market’ approach and this ‘privatisation’ perspective is reflected in the growing use of property rights instruments in climate change policy. This article examines the efficacy of using economic instruments in the environmental context where ‘market ecology’ promotes the commodification of environmental ‘goods’ and ‘bads’ and their management by market forces. It argues that the pricing of ‘nature’ or its useful properties is a crude abstraction that implies ecological values can be alienated, but this is incompatible with the material and relational qualities of such values. The limits of this conceptualisation are further demonstrated through an examination of the Kyoto Protocol’s Clean Development Mechanism (CDM), a price and property rights instrument which enables private project developers in developing countries to produce carbon credits in order to offset greenhouse gas pollution in developed countries. The evident negative social and environmental effects flowing from implementation of the CDM reinforce the limitations of economic logic in the environmental context.

The paper investigates the validity of individual perceptions of heart disease risks, and examines how information and risk perceptions affect marginal willingness to pay (MWTP) to reduce risk, using data from a stated preference survey. Results indicate that risk perceptions held before receiving risk information are plausibly related to objective risk factors and reflect individual-specific information not found in aggregate measures of objective risk. After receiving information, individuals’ updates of prior risk assessments are broadly consistent with Bayesian learning. Perceived heart disease risks thus satisfy construct validity and provide a valid basis for inferring MWTP to reduce risk. Consistent estimators of the relationship of MWTP to endogenously perceived risk are developed. Estimating MWTP based on objective rather than subjective risks causes misleading inferences about benefits of risk reduction. An empirical case study shows that estimated benefits may be as much as 60–98 % higher when estimated using individuals’ heterogeneous perceptions of risk than when using aggregate estimates of objective risk. The main contributions include assessing the validity of risk perceptions and their updating, consistently estimating the relationship between MWTP and endogenously perceived risk, and demonstrating the importance of employing risk perception information for accurate benefit measurement.

In this paper, we use a discrete choice experiment conducted among pastoralists in four different semi-arid counties in Kenya characterized by different land tenure regimes to analyze how pastoralists make tradeoffs between tenure security and grazing flexibility – the so-called pastoralist paradox. Results show that there is one group of respondents who are desperate for change and seem to prefer either group or private title deeds to their current situation. A second, smaller group has strong preferences for the status quo, which could be driven by their relatively short migration distances. Concerning index-based livestock insurance, the basis risk suffered by insured pastoralists due to underprediction is high, but willingness to pay (WTP) for livestock insurance should still be high enough to ensure maximum uptake, leaving current low uptakes hard to explain. The worry about climate change is high but does not translate into increased WTP for more secure tenure or formal livestock insurance.

Nigeria is endowed with abundant sunshine year-round; thus, solar PV would solve the environmental problems associated with petrol-powered generators. However, it is unclear whether households are willing to transition. Thus, we analyze households’ willingness to pay (WTP) for solar PV under four scenarios: (i) WTP when a solar PV is complemented with a generator, (ii) WTP when a solar PV completely displaces a generator, (iii) WTP when a solar PV is complemented with a generator, plus a subsidy, and (iv) WTP when a solar PV completely displaces a generator, given a subsidy. We find that WTP for solar PV is higher when it can displace generators completely. Subsidy plus monthly rather than upfront payment would scale up the adoption of solar PV by about 6 per cent. Furthermore, the cost benefit analysis results show that solar PV investment is profitable. Thus, there is a need to implement policies aimed at scaling up the energy transition.