DiscussionExxonValdez - Exxon Valdez article Discussion...

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Exxon Valdez article Discussion Main Points Contingent valuation is the main way to get at “passive use value”, or nonuse or existence value, because “passive use entails no direct involvement with natural resources.” There is no other way to get a value except to ask people their valuation. A panel of social scientist argued that CV estimates of lost passive use are reliable if the follow objectives are met: o Rigorous probability sampling with high response rate o In-person interviews o Discrete choice referendum elicitation format o Accurate description of the program o Conservative design features o Checks on understanding and acceptance o Debriefing questions following referendum questions o Careful pretesting Specifics of the Exxon-Valdez CV o Descriptions: Prince William Sound, cleanup effort, wildlife o Program: escort ship plan, one-time tax on oil companies, one-time tax on households to pay for protection o Every respondent asked to vote for program given 2 program costs values o Collect lots of info on respondent to use as controls o 1600 households selected, 75.2% response rate o Results: original study $2.8 billion in aggregate lost passive use value; more
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DiscussionExxonValdez - Exxon Valdez article Discussion...

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