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Contingent behavior and odor nuisances. The case of "Le Cortine" selection and composting plant in the Province of Siena

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  • Alice Baccheschi

    ()

  • Salvatore Bimonte

    ()

  • Silvia Ferrini

    ()

Abstract

Recent regulation on waste fees establishes the change from tax to tariff to cover the total management cost of the collection and selection services. It does not consider the external costs (externalities). This causes a distortion in the system of relative prices. In this paper, we focus on one particular type of externality: the odour due to the waste treatment and we estimate the damage produced by a selection and composting centre. In the literature, we can find different hedonic price and contingent valuation studies that aim to estimate individual willingness to pay (WTP) to improve air quality reducing contaminants with (direct or indirect) effects on human health. However, few studies focus on reversible externalities, such as odour. This study intends to enrich the literature on this area. To the authors’ knowledge, it is the first attempt to estimate the WTP to reduce odour emissions due to a selection and composting centre. Considering the peculiarity of the case study, we produce our estimates with the relatively new method of Contingent Behaviour.

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Bibliographic Info

Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 542.

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Date of creation: Sep 2008
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Handle: RePEc:usi:wpaper:542

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Keywords: Contingent Behaviour; odor nuisance; external effects.;

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  1. Trudy Ann Cameron, 1992. "Combining Contingent Valuation and Travel Cost Data for the Valuation of Nonmarket Goods," Land Economics, University of Wisconsin Press, vol. 68(3), pages 302-317.
  2. John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, 2008. "Combining Revealed And Stated Preference Data To Estimate The Nonmarket Value Of Ecological Services: An Assessment Of The State Of The Science," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 872-908, December.
  3. Jeffrey Englin & Trudy Cameron, 1996. "Augmenting travel cost models with contingent behavior data," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(2), pages 133-147, March.
  4. Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January.
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