Chapter
2.4.4. Hedonic price methods
2.4.5. Hedonic property value model
2.4.6. Hedonic wage model
2.4.7. Contingent valuation
3 Valuing the Environment as a Production Input
3.2.1. Variables and assumptions
3.2.2. Deriving the input demand function
3.2.3. Change in profit, without and with input adjustment
3.2.4. Magnitude of the change in profit
3.3.1. Definition and characteristics
3.3.2. Cost function for a production function with two variable inputs
3.3.3. Deriving the marginal cost function
3.3.4. Change in profit, without and with output adjustment
3.3.5. Magnitude of the change in profit
3.4.2. Deriving the output supply and profit functions
3.5. Empirical implications
3.5.1. Three types of individual functions – input demand, marginal cost (or output supply), and profit – can be used to estimate the change in profit resulting from an environmental change
3.5.2. Use of full information requires estimating a system of equations, not just a single one
3.5.3. Endogeneity: a potential source of bias in estimating all three functions, especially the production function
3.5.4. Change in revenue: a biased measure of change in profit
3.5.5. Change in cost: a biased measure of change in profit
3.6. Implications of relaxing key assumptions
3.6.2. Noncompetitive markets
3.6.3. Market distortions
3.6.4. Missing markets and household production
3.7. Example: rainfall and rice in India
3.7.2. Production function
4 Should Shrimp Farmers Pay Paddy Farmers?: The Challenges of Examining Salinization Externalities in South India
4.4. Homogeneity of paddy villages
4.5. Soil characteristics
4.6. Comparing paddy cultivation
4.7. Estimation of externality cost
4.8. Factors causing soil salinity
4.9. Production function analysis
4.10. Welfare gains from salinity reduction
5 Evaluating Gains from De-Eutrophication of the Dutch Canal in Sri Lanka
Shrimp farming and its consequences
5.2.2. Survey design and data collection
5.3. Water quality valuation techniques
Estimation of shrimp yield function
Monetary estimates of gains from water quality improvement
5.5. Conclusion and policy implications
6 Pesticide Productivity and Vegetable Farming in Nepal
6.2. Pesticide use in agriculture: a review
6.4.1. Model specification
6.4.2. Optimal level of pesticide use
6.4.3. Description of variables
6.5. Results and discussion
6.5.1. Pesticide use and farmer perception
6.5.2. Estimation of pesticide productivity
6.5.3. Marginal productivity of pesticides
6.6. Conclusions and policy recommendations
7 Forests, Hydrological Services, and Agricultural Income: A Case Study from the Western Ghats of India
7.2. Forest ecosystems, watershed services and social well-being: the existing literature
7.2.1. Forest cover change and hydrological services: the complex and contentious linkages
7.2.2. Links between forest hydrology and human well-being
7.3. Framework and objectives
7.4. Study site: ecological, social and agro-hydrological characteristics
7.4.1. Western ghats region
7.4.2. The biophysical context
7.4.4. Link between tank filling, cropping patterns and agriculture, and implications for the study design
7.5. Relationship between rainfall, catchment response and tank filling8
7.5.1. Rainfall and tank filling
7.5.2. Rainfall, runoff and vegetation
7.6. Socio-economic data collection and sampling
7.7. Estimating agricultural Incomes and wage employment under alternative hydrological scenarios
7.7.1. Incomes and wage employment under alternative scenarios for the kharif season
Unirrigated jowar in the kharif season
Estimating income and employment under irrigated kharif paddy scenario and the difference
7.7.2. Incomes and wage employment under alternative scenarios for the rabi/summer season
7.8. Likely impacts of changes in catchment vegetation on agricultural incomes and wage employment in the tank command
7.9. Conclusions and implications
8 Can Mangroves Minimize Property Loss during Big Storms?: An Analysis of House Damages due to the Super Cyclone in Orissa
8.2. Studies on valuing the storm protection role of coastal forests
8.4.2. Velocity of storm surge (Wi)
8.4.3. Socio-economic factors (Si )
8.4.5. Description of sample areas
8.4.6. Valuing residential damages
8.6. Results and discussion
8.6.1. Fully Collapsed (FC) Houses
8.6.3. Partially Collapsed (PC) Houses
8.6.4. Damages averted due to mangrove vegetation
8.6.5. Storm protection value of mangroves
8.6.6. Value per km width of mangroves
8.6.7. Value per hectare of mangroves
8.7. Conclusions and policy recommendations
9 Valuation of Recreational Amenities from Environmental Resources: The Case of Two National Parks in Northern Pakistan
9.2. Studying two parks in Pakistan
9.3.2. Factors that determine recreational demand
9.3.3. Sample size, sampling and data collection methods
9.3.4. Econometric models
9.3.5. Estimating revenues
9.4. Results and discussion
9.4.1. Descriptive statistics
9.4.2. Estimation of benefits based on the individual travel cost method
9.4.3. Recreational value of parks
9.5. Conclusions and policy implications
10 Valuing the Land of Tigers: What Indian Visitors Reveal
10.2. Studies estimating recreational value
10.3. Methodology for ZTCM
10.4. Nature of a Sundarban tour
10.4.1. The tour packages
10.5. Survey design and sampling
10.6. Data exploration: descriptive statistics
10.6.1. Some practical issues
10.6.1.1. Multi-point tourists
10.6.1.2. Foreign tourists
10.6.1.3. Duration of stay
10.6.1.4. Market segmentation
10.6.1.5. Number of zones
10.6.2. Zonal explanatory variables
10.7. Empirical estimates
10.7.2. Valuation: the consumer surplus
10.7.3. Revenue maximising entry-fee
10.8. Conclusion and policy implications
11 Estimating Welfare Losses from Urban Air Pollution using Panel Data from Household Health Diaries
11.3. Data sources and survey design
11.5. Estimating household health production function model
11.5.1. Household health production function
11.5.2. Demand for mitigating activity
11.5.3. Empirical specification
11.6.1. Estimates of equations
11.6.2. Welfare gains from reduced sick Days (H)
Welfare gains to working individuals
Gains to non-working individuals
11.6.3. Welfare gains from reduced mitigating activities (M)
12 Children in the Slums of Dhaka: Diarrhoea Prevalence and its Implications
12.2. Determinants and costs of child diarrhoea
12.3. Study area and sampling
12.4. Methods of estimation
12.4.1. Econometric model
12.4.2. Model Specification Test
12.4.3. Dependent variables
12.4.4. Independent variables
12.4.5. Engineering Variables
12.4.6. Behavioural variables
12.4.7. Socio-economic variables
12.5. Results and discussion
12.5.1. Mean test between affected and unaffected households
12.5.2. Empirical results
12.5.3. Prevalence of child diarrhoea
12.5.4. Duration of child diarrhoea episodes
12.6. Cost and sensitivity analysis of child diarrhoea
12.7. Conclusions and policy recommendations
13 Red Wells, Green Wells and the Costs of Arsenic Contamination in Bangladesh
13.3.1. Valuation of benefits of arsenic water
13.4.1. Estimating the sickness dose-response function
13.4.2. Medical expenses from arsenicosis
13.4.3. Averting expenditure at the household level
13.4.4. WTP for switching water source from red to green
13.4.5. Total welfare loss due to arsenic exposure
13.5. Discussions and conclusions
14 Air Quality and Cement Production: Examining the Implications of Point Source Pollution in Sri Lanka
14.2. Air pollution and health impacts
14.5. Methodology and estimation
14.5.1. Estimation of dose response functions
14.5.2. Estimation of mitigation expenditure functions
14.5.3. Empirical specifications
14.5.4. Calculation of welfare gain
14.6. Results and discussion
14.6.1. Results of the reduced form equations for dose response equations
14.6.2. Results of the reduced form equations of mitigation cost functions
14.6.2. Welfare gain of community through MC with various reductions of current SPM Level
14.7. Conclusions and policy implications
15 Revisiting the Need for Improved Stoves: Estimating Health, Time and Carbon Benefits
15.2. Indoor air pollution problem in developing countries: a review
15.3. Study area and data
15.4.1. Determinants of IAP
15.4.2. Valuation of benefits
15.4.4. Benefit cost analysis
15.5. Results and discussion
15.5.1. Indoor air pollution problem in rural Nepal
15.5.2. Measurement of economic benefit from intervention
15.5.3. Issue of endogeneity
15.5.7. Cost of intervention
15.5.8. Cost benefit analysis
15.6. Conclusions and recommendations
16 Benefits from Reduced Air Pollution in Delhi and Kolkata: A Hedonic Property Price Approach
16.2. The hedonic price model and choice of functional forms
16.2.2. The quadratic Box-Cox model
16.3. Data sources and design of household survey
16.4. Model for estimation and measurement of variables
16.4.1. Hedonic property price function:
16.4.2. Inverse demand function12 or individual marginal willingness-to-pay function for environmental quality
Variables for the hedonic property price function:
Distance characteristics:
16.5. Estimates of hedonic property value model with alternative functional forms
16.6. Inverse demand functions for environmental quality and welfare gains from reduced air pollution
17 The Value of Statistical Life
17.2.1. Conceptualizing value of life issues
17.2.2. Economic foundations
17.3. Econometric specification of the hedonic wage function
17.4.1. Functional form of the dependent variable
17.4.4. Workers’ behaviour and habits
17.4.5. Effect of insurance benefits
17.4.6. Life-cycle issues
17.4.7. Discount rate for health benefits and the value of life
18 An Assessment of Demand for Improved Household Water Supply in Southwest Sri Lanka
18.2. Use of the CV method to measure WTP
18.3. Planning, design and administering the survey
18.3.1. Initial preparatory work
18.3.2. Study design issues
18.3.3. Survey instrument
18.3.4. Enumerator training
18.3.5. Survey administration
18.3.6. Data entry and quality checks
18.4.2. Assessment of demand
Environmental Valuation in South Asia
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