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Title:Using choice experiments to value preferences over stormwater management
Author(s):Londono Cadavid, Catalina
Director of Research:Ando, Amy W.
Doctoral Committee Chair(s):Ando, Amy W.
Doctoral Committee Member(s):Baylis, Katherine R.; Khanna, Madhu; Netusil, Noelwah R.; Werth, Charles J.
Department / Program:Agr & Consumer Economics
Discipline:Agricultural & Applied Econ
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):Environmental economics
Choice experiments
Willingness to Pay
Willingness to Help
Stormwater management
Nonmarket valuation
Abstract:Stated preference methods have long been used to estimate the monetary value of environmental goods and services. I add to the traditional use of choice experiment surveys by assessing different aspects of people’s preferences over stormwater management control features and outcomes. I study whether heterogeneous status quo influence people’s willingness to pay for the provision of a public good. I also analyze the inclusion of willingness to help (WTH) or volunteering time as an addition to willingness to pay (WTP) the traditional approach that has the limitation of being focused on budget constraints only. I discuss the results and compare them in two different urban areas of the United States, which helps explore the stability of parameters across different urban areas. Stormwater management is a common environmental issue with a series of characteristics that makes it ideal for the purpose of this study. Stormwater control is a current concern in numerous urban areas across the country, where stormwater runoff becomes a problem, especially with urban sprawl and the impervious surfaces associated with urban growth. Stormwater runoff causes several environmental problems in addition to urban flooding, such as pollution, alteration of hydrological regimes and erosion, but these effects can vary greatly across small areas. Stormwater has been traditionally dealt with big infrastructure projects but there is a decentralized approach that involves smaller scale solutions with ancillary environmental benefits. Cities and municipalities struggle to find the optimal way to estimate the benefits associated with the decentralized stormwater control and consequently, set policies for its potential implementation. I show that people are willing to pay for traditional water quality improvements but also for improved hydrological functions. I find that heterogeneous status quo affects the preferences over stormwater control and proves to be an important factor when designing policy due to the fact that some people might not benefit from certain policies. I also find that people are willing to help or engage in activities that require time like installation and maintenance of stormwater facilities, especially when it implies environmental benefits and not only reduction of flood events. Finally, the comparison between different areas shows that for most attributes, there is no significant differences in the estimates, and find certain factors that might influence preferences over stormwater management.
Issue Date:2013-08-22
Rights Information:Copyright 2013 Catalina Londono Cadavid
Date Available in IDEALS:2013-08-22
Date Deposited:2013-08

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