You are undertaking a contingent valuation study to determine the social damages from pollution at a...
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You are undertaking a contingent valuation study to determine the social damages from pollution at a beach, which is caused by a local factory. 1. Identify at least two groups of people that you would like to target when undertaking the survey. Explain why this is a normative decision. 2. When designing your survey, you will need to specify a market scenario. Give an example of such a scenario, and explain why your scenario is consistent with best practice. After completing your study, you identify that there are two groups of people, with a different willingness to pay (WTP) to remove the pollution. Group 1 has 50 members, with a WTP of $30 each. Group 2 has 500 members, with a WTP of $6 each. Suppose that it costs a total of $4,400 to clean up the pollution. Assume that these costs would be paid for by a head tax (where everyone pays the same amount). 3. Is there a pareto improvement? Is there a potential pareto improvement? Explain. 4. What is the efficient outcome? Identify the normative assumption behind your answer. You are undertaking a contingent valuation study to determine the social damages from pollution at a beach, which is caused by a local factory. 1. Identify at least two groups of people that you would like to target when undertaking the survey. Explain why this is a normative decision. 2. When designing your survey, you will need to specify a market scenario. Give an example of such a scenario, and explain why your scenario is consistent with best practice. After completing your study, you identify that there are two groups of people, with a different willingness to pay (WTP) to remove the pollution. Group 1 has 50 members, with a WTP of $30 each. Group 2 has 500 members, with a WTP of $6 each. Suppose that it costs a total of $4,400 to clean up the pollution. Assume that these costs would be paid for by a head tax (where everyone pays the same amount). 3. Is there a pareto improvement? Is there a potential pareto improvement? Explain. 4. What is the efficient outcome? Identify the normative assumption behind your answer.
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1 When undertaking the survey to determine the social damages from pollution it would be important to target at least two groups of people the residents living in the vicinity of the beach and the vis... View the full answer
Related Book For
Cost Benefit Analysis Concepts and Practice
ISBN: 978-0137002696
4th edition
Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer
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