Monday, February 23, 2009

Contingency Evaluation

Contingency valuation must pertain to a problem where the public can directly see the implications of action or inaction.  In Phoenix, one of the most "visible" environmental problems is air visibility.  Due to the affects of urban sprawl and relatively relaxed emissions standards, the Phoenix air visibility is one of the worst in the country.  Several factors could be discussed in relation to the results of both action and inaction would produce successful and reliable survey results.  Another environmental problem that contingency evaluation would accurately address is the amount of noise pollution stemming from the combination of an urban revitalization and airport proximity.  The lack of sound barrier structure has been an issue discussed for several years, but little has been done to address the problem.  Once again, this is an issue where the affects of both action and inaction can clearly be demonstrated.  The public responds to issues that are apparent and has significant impact on their daily lives.  These two issues would allow for contingency valuation to successfully place non-use existence values.

Noise pollution and air visibility issues are environmental problems that are clear and immediate to the public.  Broader issues, such as the protection of endangered animals and the long term impact of global warming would not benefit from the use of contingency valuation because they cannot easily be translated into a theoretical market scenario.  The inability to do this causes poor results from CV because the public cannot accurately determine the rate at which they would pay for a program that they cannot comprehend.  Other means need to be taken to establish the non-use existence values for such environmental problems.

1 comment:

  1. Hi Tyler,
    I agree with you that issues which are broader do not benefit from CV. I also mentioned global warming as one of the problems that would not be conducive to using contingent valuation.
    I do think that when a problem is more visible to the public and localized it is important to use the CV method.

    ReplyDelete