IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v69y2018icp225-236.html
   My bibliography  Save this article

In search of an inclusive approach: Measuring non-market values for the effects of complex dam, hydroelectric and river system operations

Author

Listed:
  • Jones, Benjamin A.
  • Berrens, Robert P.
  • Jenkins-Smith, Hank
  • Silva, Carol
  • Ripberger, Joe
  • Carlson, Deven
  • Gupta, Kuhika
  • Wehde, Wesley

Abstract

Hydroelectric dams have social, cultural, and environmental impacts on society through both alterations of riverine effects (both downstream and in reservoirs) and the production and distribution of hydropower in a broader geographical area. Management of complex dam, hydroelectric, and river systems frequently requires tradeoffs between alternative operational profiles, each with its own set of heterogeneous external effects. Substantial evidence suggests that segments of the public hold non-market values, including non-use values, for both riverine environmental effects and a wide array of external effects of hydropower production and distribution. However, non-market non-use valuation exercises related to re-purposing dam operations continue to focus exclusively on downstream external effects, calling into question their usefulness in decision-making processes. Focusing on the Glen Canyon Dam (GCD), a critical source of hydropower and peaking capacity on the Colorado River, US, we measure non-market values, expected to be significantly composed of non-use values, using the contingent valuation (CV) method for two proposed management options inclusive of multiple social, cultural, and environmental effects of both downstream riverine effects and hydropower production and distribution in the broader basin. To provide a defensible basis for inclusion of relevant external effects in the valuation exercise, we undertook a multi-year study of the GCD policy domain. Using a nationally-representative, address-based CV internet survey, results from an advisory referendum voting format suggest that the average US household has a median net willingness to pay (WTP) to continue existing GCD operations of $21.51 per year [95% CI: $2.98, $40.04] after accounting for WTP to change operations under the US Department of Interior's preferred alternative. Net non-market value for continuing operations is $2.9 billion per year, aggregating across US households.

Suggested Citation

  • Jones, Benjamin A. & Berrens, Robert P. & Jenkins-Smith, Hank & Silva, Carol & Ripberger, Joe & Carlson, Deven & Gupta, Kuhika & Wehde, Wesley, 2018. "In search of an inclusive approach: Measuring non-market values for the effects of complex dam, hydroelectric and river system operations," Energy Economics, Elsevier, vol. 69(C), pages 225-236.
    • Handle: RePEc:eee:eneeco:v:69:y:2018:i:c:p:225-236
    DOI: 10.1016/j.eneco.2017.11.024
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988317304164
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2017.11.024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bennett, Jeffrey W. & van Bueren, Martin & Whitten, Stuart M., 2004. "Estimating society's willingness to pay to maintain viable rural communities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(3), pages 1-26.
    2. Loomis, John & Ekstrand, Earl, 1998. "Alternative approaches for incorporating respondent uncertainty when estimating willingness to pay: the case of the Mexican spotted owl," Ecological Economics, Elsevier, vol. 27(1), pages 29-41, October.
    3. Champ, Patricia A. & Alberini, Anna & Correas, Ignacio, 2005. "Using contingent valuation to value a noxious weeds control program: the effects of including an unsure response category," Ecological Economics, Elsevier, vol. 55(1), pages 47-60, October.
    4. repec:ebl:ecbull:v:3:y:2004:i:6:p:1-13 is not listed on IDEAS
    5. John C. Bergstrom & Richard C. Ready, 2009. "What Have We Learned from Over 20 Years of Farmland Amenity Valuation Research in North America?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 21-49.
    6. Douglas Noonan, 2003. "Contingent Valuation and Cultural Resources: A Meta-Analytic Review of the Literature," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 159-176, November.
    7. Timothy C. Haab & Matthew G. Interis & Daniel R. Petrolia & John C. Whitehead, 2013. "From Hopeless to Curious? Thoughts on Hausman's "Dubious to Hopeless" Critique of Contingent Valuation," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(4), pages 593-612.
    8. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    9. Richard T. Carson & W. Michael Hanemann & Raymond J. Kopp & Jon A. Krosnick & Robert Cameron Mitchell & Stanley Presser, 1998. "Referendum Design And Contingent Valuation: The Noaa Panel'S No-Vote Recommendation," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 484-487, August.
    10. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    11. George Parsons & Kelley Myers, 2017. "Fat tails and truncated bids in contingent valuation: an application to an endangered shorebird species," Chapters, in: Daniel McFadden & Kenneth Train (ed.), Contingent Valuation of Environmental Goods, chapter 2, pages 17-42, Edward Elgar Publishing.
    12. Per-Olov Johansson & Bengt Kriström, 2011. "The New Economics of Evaluating Water Projects," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 231-254, October.
    13. Zein Kallas & José A. Gómez‐Limón & Manuel Arriaza, 2007. "Are citizens willing to pay for agricultural multifunctionality?," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 405-419, May.
    14. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    15. Longo, Alberto & Markandya, Anil & Petrucci, Marta, 2008. "The internalization of externalities in the production of electricity: Willingness to pay for the attributes of a policy for renewable energy," Ecological Economics, Elsevier, vol. 67(1), pages 140-152, August.
    16. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank C. & Silva, Carol L. & Weimer, David L., 2004. "Information and effort in contingent valuation surveys: application to global climate change using national internet samples," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 331-363, March.
    17. Mattmann, Matteo & Logar, Ivana & Brouwer, Roy, 2016. "Hydropower externalities: A meta-analysis," Energy Economics, Elsevier, vol. 57(C), pages 66-77.
    18. Lewbel, Arthur & McFadden, Daniel & Linton, Oliver, 2011. "Estimating features of a distribution from binomial data," Journal of Econometrics, Elsevier, vol. 162(2), pages 170-188, June.
    19. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank & Silva, Carol & Weimer, David L., 2003. "The Advent of Internet Surveys for Political Research: A Comparison of Telephone and Internet Samples," Political Analysis, Cambridge University Press, vol. 11(1), pages 1-22, January.
    20. Loureiro, Maria L. & Loomis, John B. & Nahuelhual, Laura, 2004. "A comparison of a parametric and a non-parametric method to value a non-rejectable public good," Journal of Forest Economics, Elsevier, vol. 10(2), pages 61-74, September.
    21. Berrens, Robert P. & Ganderton, Philip T. & Silva, Carol L., 1996. "Valuing The Protection Of Minimum Instream Flows In New Mexico," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(2), pages 1-16, December.
    22. Elisabetta Strazzera & Margarita Genius & Riccardo Scarpa & George Hutchinson, 2003. "The Effect of Protest Votes on the Estimates of WTP for Use Values of Recreational Sites," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(4), pages 461-476, August.
    23. Ma, Chunbo & Rogers, Abbie A. & Kragt, Marit E. & Zhang, Fan & Polyakov, Maksym & Gibson, Fiona & Chalak, Morteza & Pandit, Ram & Tapsuwan, Sorada, 2015. "Consumers’ willingness to pay for renewable energy: A meta-regression analysis," Resource and Energy Economics, Elsevier, vol. 42(C), pages 93-109.
    24. Joseph Little & Robert Berrens, 2004. "Explaining Disparities between Actual and Hypothetical Stated Values: Further Investigation Using Meta-Analysis," Economics Bulletin, AccessEcon, vol. 3(6), pages 1-13.
    25. Trudy Ann Cameron, 1991. "Interval Estimates of Non-Market Resource Values from Referendum Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 67(4), pages 413-421.
    26. McConnell, K. E., 1997. "Does Altruism Undermine Existence Value?," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 22-37, January.
    27. Murakami, Kayo & Ida, Takanori & Tanaka, Makoto & Friedman, Lee, 2015. "Consumers' willingness to pay for renewable and nuclear energy: A comparative analysis between the US and Japan," Energy Economics, Elsevier, vol. 50(C), pages 178-189.
    28. Flores, Nicholas E., 2002. "Non-paternalistic altruism and welfare economics," Journal of Public Economics, Elsevier, vol. 83(2), pages 293-305, February.
    29. Lindhjem, Henrik & Navrud, Ståle, 2011. "Are Internet surveys an alternative to face-to-face interviews in contingent valuation?," Ecological Economics, Elsevier, vol. 70(9), pages 1628-1637, July.
    30. Paul R. Portney, 1994. "The Contingent Valuation Debate: Why Economists Should Care," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 3-17, Fall.
    31. Lockwood, Michael & Loomis, John & De Lacy, Terry, 1994. "The relative unimportance of a nonmarket willingness to pay for timber harvesting," Ecological Economics, Elsevier, vol. 9(2), pages 145-152, February.
    32. Mann, Stefan & Wustemann, Henry, 2008. "Multifunctionality and a new focus on externalities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 293-307, February.
    33. Kevin J. Boyle & Mark Morrison & Darla Hatton MacDonald & Roderick Duncan & John Rose, 2016. "Investigating Internet and Mail Implementation of Stated-Preference Surveys While Controlling for Differences in Sample Frames," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(3), pages 401-419, July.
    34. Andrea Klinglmair & Markus Gilbert Bliem & Roy Brouwer, 2015. "Exploring the public value of increased hydropower use: a choice experiment study for Austria," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 4(3), pages 315-336, November.
    35. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    36. Li, Hui & Jenkins-Smith, Hank C. & Silva, Carol L. & Berrens, Robert P. & Herron, Kerry G., 2009. "Public support for reducing US reliance on fossil fuels: Investigating household willingness-to-pay for energy research and development," Ecological Economics, Elsevier, vol. 68(3), pages 731-742, January.
    37. Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2012. "Willingness to Pay for Downtown Public Goods Generated by Large, Sports-Anchored Development Projects: The CVM Approach," Working Papers 12-01, Department of Economics, Appalachian State University.
    38. Steven B. Caudill & Peter A. Groothuis & John C. Whitehead, 2011. "The Development and Estimation of a Latent Choice Multinomial Logit Model with Application to Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 983-992.
    39. Carlson, Deven E. & Ripberger, Joseph T. & Jenkins-Smith, Hank C. & Silva, Carol L. & Gupta, Kuhika & Berrens, Robert P. & Jones, Benjamin A., 2016. "Contingent Valuation and the Policymaking Process: An Application to Used Nuclear Fuel in the United States," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 7(3), pages 459-487, October.
    40. Blomquist, Glenn C. & Dickie, Mark & O'Conor, Richard M., 2011. "Willingness to pay for improving fatality risks and asthma symptoms: Values for children and adults of all ages," Resource and Energy Economics, Elsevier, vol. 33(2), pages 410-425, May.
    41. Berrens, Robert P. & Brookshire, David & Ganderton, Philip & McKee, Mike, 1998. "Exploring nonmarket values for the social impacts of environmental policy change," Resource and Energy Economics, Elsevier, vol. 20(2), pages 117-137, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Otrachshenko, Vladimir & Tyurina, Elena & Nagapetyan, Artur, 2022. "The economic value of the Glass Beach: Contingent valuation and life satisfaction approaches," Ecological Economics, Elsevier, vol. 198(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jones, Benjamin A. & Ripberger, Joseph & Jenkins-Smith, Hank & Silva, Carol, 2017. "Estimating willingness to pay for greenhouse gas emission reductions provided by hydropower using the contingent valuation method," Energy Policy, Elsevier, vol. 111(C), pages 362-370.
    2. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    3. Alok Bohara & Joe Kerkvliet & Robert Berrens, 2001. "Addressing Negative Willingness to Pay in Dichotomous Choice Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 173-195, November.
    4. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    5. Li, Hui & Jenkins-Smith, Hank C. & Silva, Carol L. & Berrens, Robert P. & Herron, Kerry G., 2009. "Public support for reducing US reliance on fossil fuels: Investigating household willingness-to-pay for energy research and development," Ecological Economics, Elsevier, vol. 68(3), pages 731-742, January.
    6. John C. Whitehead & Andrew Ropicki & John Loomis & Sherry Larkin & Tim Haab & Sergio Alvarez, 2023. "Estimating the benefits to Florida households from avoiding another Gulf oil spill using the contingent valuation method: Internal validity tests with probability‐based and opt‐in samples," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 705-720, June.
    7. Polis, Hilary Jacqueline & Dreyer, Stacia Jeanne & Jenkins, Lekelia Danielle, 2017. "Public Willingness to Pay and Policy Preferences for Tidal Energy Research and Development: A Study of Households in Washington State," Ecological Economics, Elsevier, vol. 136(C), pages 213-225.
    8. Liao, Shu-Yi & Tseng, Wei-Chun & Chen, Chi-Chung, 2010. "Eliciting public preference for nuclear energy against the backdrop of global warming," Energy Policy, Elsevier, vol. 38(11), pages 7054-7069, November.
    9. John C. Whitehead & O. Ashton Morgan & William L. Huth & Gregory S. Martin & Richard Sjolander, 2020. "Altruistic and Private Values For Saving Lives With an Oyster Consumption Safety Program," Risk Analysis, John Wiley & Sons, vol. 40(11), pages 2413-2426, November.
    10. Cook, David & Davíðsdóttir, Brynhildur & Kristófersson, Daði Már, 2018. "Willingness to pay for the preservation of geothermal areas in Iceland – The contingent valuation studies of Eldvörp and Hverahlíð," Renewable Energy, Elsevier, vol. 116(PA), pages 97-108.
    11. John C. Whitehead & Timothy C. Haab & Ju‐Chin Huang, 1998. "Part‐Whole Bias in Contingent Valuation: Will Scope Effects Be Detected with Inexpensive Survey Methods?," Southern Economic Journal, John Wiley & Sons, vol. 65(1), pages 160-168, July.
    12. Catherine Chambers & John Whitehead, 2003. "A Contingent Valuation Estimate of the Benefits of Wolves in Minnesota," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(2), pages 249-267, October.
    13. Lindhjem, Henrik & Navrud, Ståle, 2011. "Using Internet in Stated Preference Surveys: A Review and Comparison of Survey Modes," International Review of Environmental and Resource Economics, now publishers, vol. 5(4), pages 309-351, September.
    14. Helga Fehr-Duda & Robin Schimmelpfennig, 2018. "Wider die Zahlengläubigkeit: Sind Befragungsergebnisse eine gute Grundlage für wirtschaftspolitische Entscheidungen?," ECON - Working Papers 297, Department of Economics - University of Zurich, revised Dec 2018.
    15. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    16. Whitehead, John C., 2016. "Plausible responsiveness to scope in contingent valuation," Ecological Economics, Elsevier, vol. 128(C), pages 17-22.
    17. Kaczmarski, Jesse I., 2022. "Public support for community microgrid services," Energy Economics, Elsevier, vol. 115(C).
    18. Franceschi, Dina & Vásquez, William F., 2011. "Do Supervisors Affect the Valuation of Public Goods?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), pages 1-17, August.
    19. Alló, Maria & Loureiro, Maria L., 2014. "The role of social norms on preferences towards climate change policies: A meta-analysis," Energy Policy, Elsevier, vol. 73(C), pages 563-574.
    20. Ngouhouo Poufoun, Jonas & Abildtrup, Jens & Sonwa, Dénis Jean & Delacote, Philippe, 2016. "The value of endangered forest elephants to local communities in a transboundary conservation landscape," Ecological Economics, Elsevier, vol. 126(C), pages 70-86.

    More about this item

    Keywords

    Colorado River; Glen Canyon Dam; Hydropower; Non-market; Non-use values; External effects of hydropower;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:69:y:2018:i:c:p:225-236. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.