Evaluation of the Loses of Noise Pollution in Macao with Contingent Valuation Method
Received date: 2004-07-06
Revised date: 2006-02-12
Online published: 2006-06-15
The contingent valuation method (CVM) is a simple, flexible non-market valuation method that is widely used in cost benefit analysis and environmental impact assessment. However, this method is subject to severe criticism. The criticism revolves mainly around two aspects, namely, the validity and the reliability of the results, and the effects of various biases and errors. The research used two-way bidding gaming methods by asking residents questions about the noise pollution through telephone, and by analyzing the residents' willingness to pay (WTP) and willingness to accept (WTA) to imitate market process. The returned 956 effective samples out of total 1920 surveyed samples were calculated with SPSS to estimate the value losses of the noise pollution in Macao. The result indicated that the residents' WTP and WTA for noise pollution was about 128.98 MOP (The currency money in Macao, 1 USD = 8.033 MOP), 257.78 MOP per capita per month for every adult, and the total economic losses of the noise pollution was between 773.7~825.7 million MOP per year.
It was clear that there existed a disparity between WTP and WTA and this disparity was influenced by many different factors such as income effect, substitution effect, transaction costs, and broad based preferences. According to literature, the disparity between WTP and WTA for a same commodity ranges from a low of 2.4 times to a maximum of 61 times. In our research, the disparity was only 2 times. Our research designed to ask the same individual WTA and WTP was an accepted good idea to reduce the bias. The noise pollution was a serious environmental problem in Macao. Some factors would bear significant influence on WTP and WTA values, which were income, person numbers of the family and the interest to noise pollution. Some shortcomings and advantages in the application of CVM were discussed at the end of the paper.
Li Jinping,Wang Zhishi . Evaluation of the Loses of Noise Pollution in Macao with Contingent Valuation Method[J]. Advances in Earth Science, 2006 , 21(6) : 599 -604 . DOI: 10.11867/j.issn.1001-8166.2006.06.0599
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