How Sensitive Are Environmental Valuations To Economic Downturns?
Loureiro, Maria L. ; J. B. Loomis, (2017). "How Sensistive are Environmental Valuations to Economic Downturns? Ecological Economics", 140, 235-240.
Abstract
This paper assesses the temporal stability of willingness to pay estimates (WTP) under changing economic conditions. Specifically, two questions are addressed: a) is WTP stable over time? And b) if it is not, are the changes just driven by socio-economic effects, or something else? In order to investigate these questions, we used data from the Contingent Valuation Method (CVM) study conducted after the Prestige oil spill in Spain in 2006, and a second wave of the same survey repeated in 2009, after Spain entered a serious recession. Median WTP estimates dropped from €60.36 in 2006 to €26.92 in 2009 per household, a statistically significant reduction. To investigate the amount of the drop in WTP due to observables versus changes in preferences between 2006 and 2009, we use the 2006 logit WTP coefficient estimates with 2009 levels of the independent variables and we obtain a WTP of €46.37. This estimate is statistically different from the 2009 estimate (€26.92). In the same fashion, by using 2009 logit WTP coefficients with 2006 data, we obtain an estimate of €50.29, also different from the 2006 estimate. Implications of these findings for temporal stability of welfare measures and benefit transfer exercises are also discussed.
The role of social norms on conservation programmes in shellfish fisheries
Alló, M., Loureiro, M.L., (2017). "The role of social norms on conservation programs in shellfish fisheries", Marine Policy 84134-141.
Abstract
Ostrom (1990) has argued that in collective action problems, social factors are crucial in order to promote conservation. A survey instrument among shellfish gatherers has been used to analyse their preferences with respect to a proposed conservation management programme, assessing the effect of co-management initiatives and the impact of social norms on extraction. Results show that shellfish gatherers working in a Marine Protected Area (MPA) behave more conservatively with respect to their counterparts in terms of their current extraction patterns, promoting species conservation. With regards to social norms, expected believes about the fulfilment of the current extraction regulation in their network, allow for the acceptance of restrictions imposed by the conservation management plan without decreasing the shellfish gatherers’ utility in any significant way.
The Economics of Oil Spills
Loureiro, ML., Alló, M., (2017). "The economics of oil spills". Oxford Research Encyclopedia, DOI: 10.1093/acrefore/9780199389414.013.501
Abstract
Vessel oil spills are very serious natural hazards that have affected coasts worldwide for many decades. Although oil spills from tankers are highly publicized, very little is known about the role played by the incentives and regulatory instruments in place to prevent them. In order to shed some light on these issues, data were collected worldwide on large oil spills from multiple databases, starting in the 1970s, and merged with other socioeconomic records. A crucial concern is that that large oil spills have been undercompensated over time with respect to the damages caused. A meta-analysis was estimated in order to assess relevant factors affecting the damage claimed in oil spills and the compensations received by the affected parties. Meta-regression results show that the legislation applied (strict unlimited liability versus limited liability) played a crucial role in both the amount claimed and the final compensation received. Also, time-trend variables are shown as determining factors for both the damages and claims that are finally paid. To correct the large gap between damage claimed and compensation scenarios, it is recommended to strengthen compensation funds, while carrying out more comprehensive assessment studies which apply valuation methods comparable with those proposed by green capital initiatives for marine ecosystem services, and which could be used successfully during the litigation process.
The Cost of Mediterranean Sea Warming and Acidification: A Choice Experiment Among Scuba Divers at Medes Islands, Spain
Rodrigues, L. C., van den Bergh, J. C., Loureiro, M. L., Nunes, P. A., & Rossi, S. (2016). "The cost of Mediterranean Sea warming and acidification: a choice experiment among scuba divers at Medes Islands, Spain". Environmental and resource economics, 63(2), 289-311.
Abstract
A choice experiment is undertaken to elicit preferences of scuba divers in the Marine Protected Area of Medes Islands (Spain). This is the first non-market valuation study of a typical Mediterranean habitat, the Coralligenous, which is characterized by high biodiversity, geomorphologic complexity and iconic species like gorgonians. This habitat is not only very attractive for scuba diving, but is also threatened by climate change and ocean acidification, which is our motivation for undertaking this valuation study. Choice attributes include the number of divers on a diving trip, underwater landscape, presence of jellyfish species, expected state of gorgonians, and price of a dive. Results of multinomial and random parameter logit models indicate a decrease in the attractiveness of Coralligenous areas for scuba diving as a result of both environmental pressures. Estimates of welfare values show that the local extinction of gorgonians had the highest negative effect on utility equivalent to a cost of €60 per dive, followed by abundance of stinging jellyfish with a cost of €26 per dive. Choice probabilities for the selection of different dive experiences indicate the highest rejection rates for the combined sea warming and acidification scenarios.
Ecosystem Services and REDD: Estimating the Benefits of Non-Carbon Services in Worldwide Forests
Ojea, E. M. Loureiro, M. Alló, M. Barrio. 2016. “Ecosystem Services and REDD: Estimating the Benefits of Non-Carbon Services in Worldwide Forests” World Development, doi:10.1016/j.worlddev.2015.10.002
Abstract
Forest ecosystems are playing an increasingly important role in climate change mitigation through programs on Reducing Emissions from Deforestation and Forest Degradation (REDD), which targets carbon sequestration. However, decades of environmental valuation studies evidence the economic benefits of other forest ecosystem services different than carbon, and there is no evidence on how these economic benefits differ in countries where REDD is to be implemented. To respond to this question, we conduct a global meta-analysis of forest primary studies published over the past 30 years in which we estimate the economic benefits related to different forest ecosystem services in targeted REDD countries, and discuss the implications of considering these economic figures in REDD decision making. A systematic review of the scientific literature leads to the selection of 52 original studies to conduct a meta-analysis on 205 observations. We obtain that the economic benefits of forest ecosystem services in REDD countries are always greater than in other countries, and provide economic ranges of services to serve as a reference to REDD decision making in relation to co-benefits and opportunity costs. The results have implications for future avoided deforestation programs, which should take co-benefits into account in order to better articulate payments for ecosystems and create proper incentives for forest conservation and sustain local livelihoods.
Economic valuation of climate‐change‐induced vinery landscape impacts on tourism flows in Tuscany
Nunes, P. A., & Loureiro, M. L. (2016). "Economic valuation of climate‐change‐induced vinery landscape impacts on tourism flows in Tuscany". Agricultural Economics, 47(4), 365-374.
Abstract
It is widely acknowledged that landscape features can play a major role in determining tourism demand. The present article assesses the impact of vinery landscape and high‐quality wine production on regional tourism flows in Tuscany, an important tourist region in Italy and renowned for its enchanting countryside. Thus, vinery landscape and high‐quality wine production have been included as explanatory variables in our model for tourism flows. This model has been estimated for both international and domestic markets for the whole region of Tuscany. Estimation results confirm that land areas devoted to the production of these superb Tuscan wines, in the particular case of Siena including the Brunello di Montalcino, play an important role in explaining international tourism flows. In this context, we estimate climate‐change‐induced impacts on vinery landscape and quality wines in the tourism sector. These are estimated to cause a loss in the tourism revenues of nearly 15 and 20 million Euros a year, respectively, for 2020 and 2050, for the Tuscany region. Such losses are quite significant, and reiterate the urgency to identify and implement adequate policy options so as to moderate such land use changes, and respective negative welfare impacts.
The incidence of calorie labeling on fast food choices: A comparison between stated preferences and actual choices
Loureiro, M. L., & Rahmani, D. (2016). "The incidence of calorie labeling on fast food choices: A comparison between stated preferences and actual choices". Economics & Human Biology, 22, 82-93.
Abstract
In order to test the effect of calorie information on fast food choices, we conducted a questionnaire employing two types of stated preferences methods (the best-worst-scaling and intentional questions) and a follow-up randomized field experiment in a sample of 119 participants. This combined approach allowed us to test the internal validity of preferences for fast food meals across elicitation scenarios. The results showed that calorie information reduces the probability of selecting high calorie meals only in the questionnaire, while it did not have any significant impact on actual purchasing behavior in the field experiment. Thus, the findings show that there is a clear difference between the role of calorie information on immediate stated preference choices, and the relatively low level of responsiveness in real choices in a restaurant. We believe that the current results are quite suggestive, indicating the limits of predicting actual fast food behavior, and may open the way to using data sources that combine stated methods with field experiments.
Evaluating the fulfillment of the principles of collective action in practice: A case study from Galicia (NW Spain)
Alló, M., & Loureiro, M. L. (2016). "Evaluating the fulfillment of the principles of collective action in practice: a case study from Galicia (NW Spain)". Forest policy and economics, 73, 1-9.
Abstract
We analyze the type of communal forest owners' management practices through a survey in Northern Spain. In particular, we test whether the Principles of Collective Action (PCA) postulated by Ostrom (1990) are being followed in a sample of communal forests. Second, we study whether such principles derive in better forest management practices and conservation outcomes. Our results show that PCA are not perfectly fulfilled in our sample, showing a clear room for improvement. However, we have also found that in areas where their application is more predominant, forest owners have better management practices. Specifically, we have found a negative relationship between the fulfillment of PCA and the number of forest fires in our sample, while considering other socio-economic and control variables.
Ecosystem services values in Spain: A meta-analysis
Quintas-Soriano, C., Martín-López, B., Santos-Martín, F., Loureiro, M., Montes, C., Benayas, J., & García-Llorente, M. (2016). "Ecosystem services values in Spain: A meta-analysis". Environmental Science & Policy, 55, 186-195.
Abstract
We analyzed the state of the art in research on the economic valuation of ecosystem services in Spain. A review of 150 publications was conducted and included 649 economic value estimates. The results showed an increase in the number of scientific studies on the economic valuation of ecosystem services and a dissimilar distribution across regions. Cultural ecosystem services received the most attention, and coastal systems and forested areas were the most studied ecosystem types. We found differences in the economic value estimates among categories of services and among economic valuation methods, with provisioning services and market-based methods as those that elicited the highest economic values, respectively. Our results provide an overview of past and current economic valuation studies in Spain. In addition the results depict patterns that help in understanding the effects of different factors on economic value estimates and in providing insights for future research on ecosystem services assessment in Spain. We conclude that although economic assessments remain important in scientific and policy forums, we should also recognize additional approaches that are able to incorporate the plurality of values attached to ecosystem services.
Economic impacts of marine ecological change: Review and recent contributions of the VECTORS project on European marine waters
Groeneveld, R. A., Bartelings, H., Börger, T., Bosello, F., Buisman, E., Delpiazzo, E., ... & Loureiro, M. (2016). "Economic impacts of marine ecological change: review and recent contributions of the VECTORS project on European marine waters". Estuarine, Coastal and Shelf Science, 30, 1e12.
Abstract
Marine ecological change is likely to have serious potential economic consequences for coastal economies all over the world. This article reviews the current literature on the economic impacts of marine ecological change, as well as a number of recent contributions to this literature carried out under the VECTORS project. We focus on three main types of change, namely invasive alien species; outbreakforming species, such as jellyfish and toxic algae; and gradual changes in species distribution and productivity. The case studies available in the literature demonstrate that the impacts of invasions and outbreaks on fisheries, aquaculture, and tourism can potentially amount to several tens of millions of dollars each year in some regions. Moreover, stated preference studies suggest a substantial impact on coastal tourism and non-use values that is likely not visible in case studies of specific outbreak events. Climate-driven gradual changes in distribution and productivity of commercial fish stocks will have an impact on fisheries, although these impacts are likely to be overshadowed by much larger changes in prices of seafood and fuel.
