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Abstract The benefits of reduced eutrophication effects in the Stockholm archipelago, Sweden, are estimated by an application of the contingent valuation method. The mean willingness to pay per adult resident in the counties of Stockholm and Uppsala is estimated to SEK 436-725 per year. This corresponds to a population estimate of SEK 506-842 milli...
Contexts in source publication
Context 1
... consists of a cluster of approximately 24,000 island, in all-different sizes and shapes. It is situated in Stockholm County (see Figure 1), which has about 1.8 million inhabitants, i.e., about 20% of the total Swedish population. ...
Context 2
... Moreover, there were no rejection of hypotheses of independence in three tests related to the place of living of respondents and non-respondents. For the willingness to respond to the questionnaire, it did not seem to make any difference whether one lives (1) in Stockholm County or Uppsala County; (2) in a municipality in Stockholm County with coastline to the Baltic Sea or not; or (3) in a municipality included in the Stockholm archipelago as defined in Figure 1 or not. 3 Hence, this analysis of non-respondents suggests that due attention should be paid to systematic differences between respondents and non-respondents whenever sex turns out to be a crucial variable. Any other systematic difference could not be found. ...
Citations
... Like the direct valuation studies of NWR, studies of indirect valuation of NWR as reductions in eutrophication vary with respect to scale and methods. A large number of studies have been applied to the Baltic Sea (Söderqvist, 1998;Sandström, 1999;Söderqvist and Scharin, 2000;Soutukorva, 2001), with also a focus on the eutrophied freshwaters in the UK (Pretty et al., 2003) and in the US (Dodds et al., 2009), and harmful algal blooms in the US coastal waters Hoagland et al. (2002). The studies applied to the Baltic Sea use different valuation methods, the contingent valuation method (CVM), the travel cost method (TCM). ...
... However, studies applying CVM are subjected to much criticism concerning their hypothetical way of estimating values (see, e.g., (Turner et al., 2003)). The CVM is used by Söderqvist and Scharin (2000) and the Sandström (1999) and Soutukorva (2001) for estimating individuals' willingness to pay (WTP) for an improved sight depth in Laholm Bay at the Swedish West coast and in the Stockholm archipelago. ...
... Another strand of studies have demonstrated how the recreational value of surface waters is contingent on water clarity and influences the willingness to pay for cleaner surface waters (Söderqvist and Scharin, 2000;Atkins and Burdon, 2006;Atkins et al., 2007;Vesterinen et al., 2010). We used these studies for step 4 of our analysis, which requires valuation estimates for cardinal scale improvements in water clarity for waterfront property owners, beachgoers, and residents. ...
... A recent survey shows that during summer months 41% of the population and 34% of foreign tourists head for the beaches for swimming (VisitDenmark, 2016). Beachgoers' WTP for improving water quality also increases per unit of improvement in Secchi depth (Söderqvist and Scharin, 2000). A travel cost study from Finland reports that reducing average water clarity by a meter leads to a loss of beachgoer benefits in the order of €29-87 million annually (Vesterinen et al., 2010). ...
... We consider the resident population of the municipalities bordering the water bodies along with an estimate of the summer residents, based on the number of holiday homes and other tourist accommodation (camping sites, holiday centers, hostels and marinas) in the same municipalities (Statistics Denmark, 2017). Following the above procedure for adjusting study results to a policy site valuation estimate (OECD, 2012; Barbier et al., 2016) we conducted benefit transfer from an original study in Sweden (Söderqvist and Scharin, 2000) with the result that beachgoers' WTP is assumed to amount to €79 per meter of Secchi depth improvement. We assume that children are included under adults' WTP. ...
We estimate economic benefits for seaside recreation and waterfront property when reducing nitrogen leaching to coastal water bodies. We apply impact pathway and benefit transfer methodology, linking total nitrogen concentration to water clarity (Secchi-depth). Ten catchments are analyzed comparing results for 2010 to a policy scenario that complies with the EU Water Framework Directive. The scenario reduces leaching with 5200 ton N, downstream discharges to estuaries by 35% and provide significant Secchi-depth improvements. Our integrated assessment predicts an annual economic benefit for local residents of €35 million, and co-benefits of up to €57 million. Benefits are catchment-specific and differ for downstream discharges from €1 to €32 per kg N, while for upstream discharge losses they range up to €10 per kg N. When expressed per unit of farmland the policy scenario displays economic benefits spanning €8–176/ha. The span reflects the different physical, biological and human circumstances of each catchment. Available here: https://doi.org/10.1016/j.marpolbul.2019.01.010
... While such studies have a long tradition in North America, recent studies confirm similar impacts in Nordic countries (Vesterinen et al. 2010;Artell and Huhtala, 2016). Another strand of studies have demonstrated how the recreational value of surface waters is contingent on water clarity and influences the willingness to pay for cleaner surface waters (Söderqvist and Scharin, 2000;Atkins and Burdon, 2006;Atkins et al., 2007;Vesterinen et al., 2010). As a point of departure for step 4 of the present analysis requires valuation estimates for cardinal scale improvements in water clarity for waterfront property owners, beachgoers and residents, which we derive from the above type of studies. ...
... A recent survey shows that during summer months 41% of the population and 34% of foreign tourists head for the beaches for swimming (VisitDenmark, 2016). Beachgoers' WTP for improving water quality also increases per unit of improvement in Secchi depth (Söderqvist and Scharin, 2000). A travel cost study from Finland reports that reducing average water clarity by a meter leads to a loss of beachgoer benefits in the order of €29-87 million annually (Vesterinen et al., 2010). ...
... We consider the resident population of the municipalities bordering the water bodies along with an estimate of the summer residents, based the number of holiday homes and other tourist accommodations (camping sites, holiday centers, hostels and marinas) in the same municipalities (Statistics Denmark, 2017). Following the above procedure for adjusting study results to a policy site valuation estimate (OECD, 2012; Barbier, 2016) we conducted benefit transfer from an original study in Sweden (Söderqvist and Scharin, 2000) with the result that beachgoers' WTP is assumed to amount to €79 per meter of Secchi depth improvement. We assume that children are included under adults' WTP. ...
We estimate economic benefits for seaside recreation and waterfront property when reducing nitrogen leaching to coastal water bodies. We apply impact pathway and benefit transfer methodology, linking total nitrogen concentration to water clarity (Secchi-depth). Ten catchments are analyzed comparing results for 2010 to a policy scenario that complies with the EU Water Framework Directive. The scenario reduces leaching with 5200 ton N, downstream discharges to estuaries by 35% and provide significant Secchi-depth improvements. Our integrated assessment predicts an annual economic benefit for local residents of €35 million, and co-benefits of up to €57 million. Benefits are catchment-specific and differ for downstream discharges from €1 to €32 per kg N, while for upstream discharge losses they range up to €10 per kg N. When expressed per unit of farmland the policy scenario displays economic benefits spanning €8–176/ha. The span reflects the different physical, biological and human circumstances of each catchment. Published as: Economic benefits of reducing agricultural N losses to coastal waters for seaside recreation and real estate value in Denmark, Marine Pollution Bulletin 140:146-156. DOI: 10.1016/j.marpolbul.2019.01.010.
... For example, sight depth is a useful ecological endpoint that has been used in several studies that demonstrate a WTP by Swedish beachgoers for improved recreational experiences (see Sandström, 1996 andSoutukorva, 2005 for a study of travel expenditures and Söderqvist and Scharin, 2000 for a stated preference study). The recreational value stated by survey respondents in e.g., the Söderqvist and Scharin (2000) study could be linked to the site depth improvement provided by an eelgrass bed to provide a value-based monetary estimate. However, if respondents also internally considered benefits to fish populations or carbon sequestration when stating their WTP for the hypothetical water clarity improvement, then we may be double counting benefits and thus over-estimating the contribution of eelgrasses' water clarity-generating functions. ...
... The authors have found a positive correlation between income and WTP for biodiversity, with a corresponding elasticity of substitution between 1.7 and 2, depending on the chosen model specification. (2003) Landscape amenities 1.11 Lindhjem and Tuan (2012) Biodiversity 1.37 Hökby and Söderqvist (2003) Collective ecosystem services 1.47 Ready et al. (2002) Water quality improvement 1.69 Liu and Stern (2008) Collective marine ecosystem services 2.38 Jacobsen and Hanley (2009) Biodiversity 2.63 Broberg (2010) Contingent value of predator species 2.70 Carlsson and Johansson-Stenman (2000) Air quality improvement 3.13 Chiabai et al. (2011) Collective woodland ecosystem services 3.23 Söderqvist and Scharin (2000) Water quality improvement 3.70 Wang and Whittington (2000) Air quality improvement 3.70 Barbier et al. (2015) Water quality improvement 3.85 Whitehead et al. (2000) Recreation services improvement 4.17 Hammitt et al. (2001) Preservation of wetlands 4.55 Wang et al. (2013) Water quality improvement 4.76 Yu and Abler (2010) Air quality improvement 5.00 Barton (2002) Water quality improvement 7.14 Source: Calculations based on Table 1 in Drupp (2016) These estimates indicate, almost without exception, that the elasticity of substitution σ is greater than 1. This means that, generally speaking, conventional consumption and ecosystem services are substitutable in the welfare function, but also that they are not perfect substitutes. ...
In 2015, the Dutch working group on discount rates (Werkgroep Actualisatie Discontovoet) recommended using the standard discount rate in cost-benefit analyses (CBAs) of nature, while taking into account annual relative price increases of 1% for the effects on ecosystem services. The increase is not to be applied if the particular ecosystem service is substitutable. In this report, we examine for which ecosystem services CBA researchers need to apply the 1% increase. At issue is the change in the ecosystem services that directly affect people’s welfare, known as final ecosystem services, such as food supply, drinking water, flood protection, quality of the environment, green recreation and natural heritage. Changes in intermediate services, such as pollination and carbon sequestration, have an indirect impact on welfare, through their effects on final services and conventional consumption.
Two matters play an important role in determining the relative price increase: the relative growth rate of nature compared to the growth rate of consumption, and the degree to which nature is substitutable. If nature grows more slowly than consumption and is not or only partly substitutable, it will become scarcer in the future. This justifies the application of a relative price increase. The data show that, over the past few decades, ecosystem services have become comparatively scarcer in the Netherlands: the annual growth rate of GDP was between 0 and 3% higher than that of ecosystem services. However, data published in international studies reveal that the elasticity of substitution between ecosystem services and conventional consumption is generally greater than 1. Therefore, substitution of ecosystem services with other goods or services is, to a certain extent, possible. Combining both insights, it appears that on the basis of historical data a relative price increase of 1% is defensible for a large share of ecosystem services, even though they are all substitutable to some degree. A look at the latest WLO scenarios (CPB/PBL, 2015a) about future growth rates of nature and consumption provides comparable results.
When highly location-dependent ecosystem services become comparatively scarce in or near urban areas, their marginal utility increases, which means that a relative price increase of more than 1% can be justified. Several provisioning services, such as those related to food, wood and energy, should not be subject to relative price increases, because technology-based substitutions or imported goods ensure that the growth in their supply keeps pace with the growth in consumption. In contrast, a worldwide decline in provisioning services could give rise to the application of a relative price increase.
... 1 See for example Söderqvist and Scharin (2000), Lindahl et al. (2005), Kosenius (2010), Wang and Calderon (2012), Ahtiainen and Vanhatalo (2012), the Swedish Agency for Marine and Water Management (2013), and Stybel and Schernewski (2013) for studies on associated topics. These studies examine the welfare effects of improved water quality through measures such as mussel farming. ...
Eutrophication is one of the most serious global threats to coastal areas. One effect of eutrophication is seasonal macroalgal blooms. As a consequence, large amounts of beach-cast algae are today reported from coastal areas worldwide. In this study, we analyze nonmarket benefits by capturing local residents' Willingness To Pay (WTP) for an environmental program to regularly remove and utilize beach-cast algae to produce bioenergy and biofertilizer. Results indicate a considerable WTP among local residents in the Baltic Sea study site. This WTP estimate together with a potential increase in non-resident beach tourism amounts to potentially substantial welfare benefits from the environmental program. These benefits could encourage similar environmental programs in the future.
... Eutrophication occurs because of excess nitrogen and phosphorus inputs to waterbodies from detergents, fertilizers, livestock wastes and sewage. The economic value of reductions in eutrophication has been measured in the Stockholm archipelago of Sweden (Söderqvist and Scharin, 2000) and in Lithuania, Poland and Sweden (Markowska and Żylicz, 1999), as well as over the entire Baltic area (Ahtiainen et al., 2014). All these studies employ the contingent valuation method to evaluate various improvement scenarios related to reduced eutrophication. ...
... (3) Qualitatively, our key result on how income inequality affects the mean WTP for environmental public goods holds more generally, 1 See e.g. Kriström and Riera (1996), Söderqvist and Scharin (2000), Hammitt et al. (2001), Barton (2002), Ready et al. (2002), Horowitz and McConnell (2003), Hökby and Söderqvist (2003), Liu and Stern (2008), Scandizzo and Ventura (2008), Jacobsen and Hanley (2009), Khan (2009), Broberg (2010, Pek et al. (2010), Chiabai et al. (2011), Wang et al. (2013), Lindhjem and Tuan (2012). ...
We study how the distribution of income among members of society, and income inequality in particular, affects social willingness to pay (WTP) for environmental public goods. We find that social WTP for environmental goods decreases (increases) with income inequality if and only if environmental goods and manufactured goods are substitutes (complements). We derive adjustment factors for benefit transfer to control for differences in income distributions between a study site and a policy site. For illustration, we quantify how social WTP for environmental public goods depends on the respective income distributions for empirical case studies in Sweden and the World at large. We find that the adjustment for income inequality can be substantial.
... Omvänt skulle värdet av ett ökat fiske kunna användas för att motivera kostnader av åtgärder mot övergödningen (t.ex. Söderqvist & Scharin (2000). ...
... To illustrate our theoretical results, and to estimate the potential size of these effects, we quantify how social WTP for 1 See e.g. Kriström and Riera (1996), Söderqvist and Scharin (2000), Hammitt et al. (2001), Barton (2002), Ready et al. (2002), Horowitz and McConnell environmental public goods depends on the respective income distribution for two empirical case studies: (1) an environmental good of cultural importance, the existence of large predator species, in Sweden (from Broberg (2010)), and (2) biodiversity conservation at the global scale (from the meta-study of Jacobsen and Hanley (2009)). As for the quantitative size of effects, a benefit transfer for biodiversity conservation from the global study with high income inequality to the case context of Sweden, a country known for its low income inequality, would entail a WTP correction for income inequality of 11 percent. ...
We study how the distribution of income among members of society, and income inequality in particular, affects social willingness to pay (WTP) for environmental public goods. We find that social WTP for environmental goods increases with mean income, and decreases (increases) with income inequality if and only if environmental goods and manufactured goods are substitutes (complements). Furthermore, social WTP for environmental normally changes more elastically with mean income than with income inequality. We derive adjustment factors for benefit transfer to control for differences in income distributions between a study site and a policy site. For illustration, we quantify how social WTP for environmental public goods depends on the respective income distribution for empirical case studies in Sweden, China and the World. We find that the effects of adjusting for income inequality can be substantial.
