Valuing the impact of Self-rated Health and Social Support on life satisfaction among Hong Kong Chinese population

Background Research has highlighted that satisfaction in health and social support are key areas of life affecting individual’s wellbeing. Many social and public health initiatives use these two intervention mechanisms to improve individual’s wellbeing. For the purpose of cost-benefit assessment, there has been growing interest in expressing these intervention effects in economic terms. However, only a handful of studies have ever estimated these effects in economic terms, and none of which examined in a Chinese context. The aim of this study is to extend this line of valuation work to estimate the implicit willingness-to-pays on the effects of improving individuals’ self-rated health status (SRH) and social support (SS) on their life satisfaction in the Chinese population. Methods Using individual’s life satisfaction data from a two-wave representative panel survey in Hong Kong (n = 1,109), this study first conducted a cross-lagged analysis with structural equation modelling technique to examine the causal effects of SRH and SS on life satisfaction, while simultaneously adjusting their reverse causal influences. The use of this cross-lagged approach was the effort to minimising the endogeneity problem. Then, substituting the respective estimates to the formulae of compensating surplus, the marginal rate of substitution of SRH and SS with respect to individual’s equivalised monthly household were estimated and were then expressed as the willingness-to-pays on the effect of improving individuals’ SRH and SS on their life satisfaction. Results The cross-lagged analysis ascertained the casual effects of SRH (β = 0.078, 95%CI: 0.020, 0.151) and SS on individuals’ satisfaction with life. The sample’s marginal rate of substitution of SRH and SS were found to be 1.28 (95%CI: 0.43, 2.15) and 1.36 (95%CI: 0.23, 2.49) respectively. Translating into the concept of compensating surplus, the implicit monetary values of improving the sample’s SRH from “poor health” to “excellent health” and their SS from “little support” to “a lot of support” are equivalent to an increase in their equivalised monthly household income by HK$56,000 and HK$39,400 respectively. Conclusions This study has implications for the cost-benefit assessment in wellbeing initiatives for the Chinese population.

Theoretical Background

This chapter starts by briefly presenting the theoretical background of welfare economics and introducing key aspects such as the indirect utility function, the expenditure function, or the concepts of compensating surplus or equivalent surplus. Next, it draws attention to willingness to pay and willingness to accept, essential measures in environmental valuation. Finally, the chapter summarises the basic mathematical notation of the random utility maximisation models used throughout the book.

Visitors’ Preferences on the Characteristics of Bogor Botanical Gardens

This study aims to estimate the economic benefits of the Bogor Botanical Gardens (BBG) in terms of willingness to pay (WTP) and, using the estimation, to make a scenario of the entrance fee. Data were collected through a survey among 414 local visitors using the travel cost method (TCM) and choice modeling method (CM). The result from the TCM reveals that travel cost, gender, and education significantly affect the number of visits to the BBG. The value of consumer surplus amounts to IDR 582,072 (USD 40.90) and the total value of benefits obtained is IDR 728.8 billion (USD 51.21 million) per year. Meanwhile, the CM result shows that compensating surplus is estimated at IDR 19,704 (USD 1.38) and the total value of benefits is IDR 24.67 billion (USD 1.73 million) per year. The CM shows that the attributes of service cars as well as information and environmental educational tools and infrastructure have positive and significant values to the visitors. Thus, there is a potential to increase the entrance fee for tourists to become IDR 20,629 (USD 1.45) per visit. Through the increase in entrance fee, the BBG could generate a potential revenue of IDR 25.83 billion (USD 1.81 million) per year, which can improve the number of plant species, information and environmental educational tools and infrastructures, and service cars inside the BBG.

Valuing Wetland Ecosystem in Ethiopia an Empirical Evidence with Choke Mountain: Application of Choice Experiment

Ecosystem services have not market price. In Ethiopia, choke mountain wetland ecosystem has major contribution for providing water, regulating climate, and offering recreational. Valuing this natural resource helps to protect it from damage. The objective of the study is to value choke mountain wetland ecosystem by using choice experiment. To value it the attributes are biodiversity, recreational service, water availability, job opportunity, and monetary payment. Primary data was collected from 270 sample households. Both descriptive and econometrics analysis were conducted. The study found that households had good awareness about the choke mountain wetland ecosystem services. Mixed logit models were used for valuation, and all attributes are significant to affect the probability of choosing an alternative scenario. The study found that households gave higher value for biodiversity improvement than the rest and water availability is the least preferable attributes. The total WTP for the first and second alternatives was 7,133,034.216 and 7,031,211.146 respectively; it was high in the second alternative. Moreover, compensating surplus which reflect overall willingness to pay for a change from the status quo to alternative improvement scenarios were estimated. Estimated results for high improvement scenario and medium improvement scenario were ETB 2,119,457.028 and 1,955,828.606 respectively.

Valuing ecosystem services of Sundarbans mangrove forest for improved conservation: approach of randomized conjoint experiment

PurposeThis study provides empirical evidence of the economic valuation of ecosystem services. It examines the willingness-to-pay (WTP) and compensating surplus (CS) in response to policy change based on focus group discussion (FGD) and survey.Design/methodology/approachA randomized conjoint analysis based experiment was conducted in seven villages of Sundarbans in Bangladesh to elicit stated preference data and measure WTP and CS. Each respondent faced three options in every choice card-two hypothetical alternatives and one status quo scheme. Four alternatives – payment for ecosystem services, storm protection, erosion control and habitat for fish breeding – are randomly and simultaneously assigned to the two alternatives.FindingsThe findings suggest that age, income, education, family size and occupational status are the influential factor to choice the relevant attributes of ecosystem services and their levels. Villagers would like to pay annually Tk. 703, Tk. 281, and Tk. 59 for lower, moderate, and higher ecosystem services. With these WTP, they get surplus Tk. 760, Tk. 138, and Tk. 346 respectively.Research limitations/implicationsThe lower WTP does not necessarily imply low demand for ecosystem service, as the findings from WTP illustrate potential demand for ecosystem services of Sundarbans.Practical implicationsThe study provides an important insight into the ecosystem services and values of Sundarbans mangrove forests for welfare and can inform policy for sustainable use of resources of this forest.Originality/valueThere is a crucial gap in understanding what could villagers be ready for WTP for better ecosystem services of Sundarbans mangrove forest, how do payment based ecosystem services, as a proxy for the conservation of Sundarbans mangrove, and to what extent the policy can be strengthened.

Understanding Tourists’ Willingness-to-Pay for Rural Landscape Improvement and Preference Heterogeneity

With the vigorous development of urbanization and rural tourism, the landscape of villages and towns has undergone tremendous changes under the influence of policies and industries. In order to avoid irreversible changes in the local heritage landscape and promote local sustainable development, it is necessary to strengthen the attention and research on the rural recreation landscape. This research examines the value of rural landscape recreation by applying the choice experiment method (CEM) to a suburban area in Sichuan, China. Mixed logit models were adopted in examining tourists’ willingness-to-pay (WTP) for rural landscape improvement and preference heterogeneity. An assessment of the rural landscape’s recreational value was made using the compensating surplus calculation method. Results reported are of four important landscape elements: ecological environment, rural life and associated productive landscape, rural housing, and service landscape, ranked by tourists from high-to-low. A major finding of the research is that an increase in rural tourism is dependent upon improvements to landscape elements. The results of this research can provide policymakers with valuable information necessary to develop a successful plan to attract and increase tourism in rural areas of China.

Instrument-Induced Bias in Donation Mechanisms: Evidence from the Field

Eliciting actual donations toward a public good has been proposed as a means of estimating a lower bound to individuals’ compensating surplus, and can be accomplished using mail/phone surveys or field experiments. This study shows that when warm-glow is present, the elicitation instrument decreases the transaction costs of donating. This presents an obstacle to using the donation mechanism. As a remedy, we propose the use of a multi-donation mechanism where subjects can direct their donation to alternative public goods. Results from a field experiment confirm this instrument-induced bias can be large, suggesting field experiment practitioners should seriously consider how their experimental procedures may alter economic behavior.

Environmental values and resource management options: a choice modelling experience in Malaysia

The management of the Matang Mangrove Wetlands in Perak State, Malaysia is under review. To assist decision makers in determining the optimal management strategy, a choice modelling application was undertaken to estimate the non-market values provided under different management options. Implicit prices for environmental attributes including the area of environmental forest protected, the number of bird species protected and the recreation use of the area were estimated. In addition, the implicit price of a social, non-market attribute, the employment of local people in wetland based extractive industries, was estimated. Compensating surplus estimates for a number of alternative wetland management scenarios were also calculated.