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1 Department of Energy/Environmental Protection Agency 1 Workshop on Using Contingent Valuation 2 to Measure Non-Market Values 3

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1 Department of Energy/Environmental Protection Agency 1 Workshop on Using Contingent Valuation 2 to Measure Non-Market Values 3 1 1 DEPARTMENT OF ENERGY/ENVIRONMENTAL PROTECTION AGENCY 2 WORKSHOP ON USING CONTINGENT VALUATION 3 TO MEASURE NON-MARKET VALUES 4 5 * * * 6 7 THURSDAY, MAY 19, 1994 8 9 * * * 10 11 HYATT DULLES 12 2300 DULLES CORNER BOULEVARD 13 CONCORD A AND B 14 HERNDON, VIRGINIA 15 * * * 16 A meeting of the DOE/EPA Workshop on Using 17 Contingent Valuation to Measure Non-Market Values was held 18 on Thursday, May 19, 1994, commencing at 8:47 a.m., Dr. Paul 19 Portney, presiding. 2 1 DISCLAIMER 2 Although the information in this report has been funded in 3 part by the United States Environmental Protection Agency, 4 it does not necessarily reflect the views of the Agency and 5 no official endorsement should be inferred. Mention of trade 6 names or commercial products does not constitute endorsement 7 or recommendation for use. 3 1 C O N T E N T S 2 Session 1 3 Dr. Anthony Fisher...........................Page 20 4 Dr. Peter Diamond............................Page 52 5 Dr. Michael Hanemann.........................Page 6 7 Session 2 8 Dr. Howard Schumann..........................Page 9 Dr. William Schultze.........................Page 10 Dr. William Desvousges.......................Page 11 Dr. Jonathan Baron...........................Page 12 13 Session 3 14 Dr. Jordon Louviere..........................Page 15 Dr. Alan Randall.............................Page 16 Dr. Ronald Cummings..........................Page 17 18 Dinner Speaker 19 Dr. Thomas Lovejoy...........................Page 4 1 P R O C E E D I N G S 2 (8:47 a.m.) 3 DR. BJORNSTAD: My name is David Bjornstad. As Chair 4 of this event, I would like to welcome you on behalf of the 5 Oak Ridge National Laboratory. 6 I would also like to spend just a moment in making a 7 couple of announcements and recognizing a couple of people 8 before we get going with this. As you have noticed, this is 9 a complicated event put on. 10 And, I would like to thank Jim Cohn, who served as my 11 Co-Chair; Cynthia Moody, who is the administrative person 12 for the event; Linda Hampton, who helped Cynthia, and Joy 13 Lee of our business office. 14 And, I would like to ask you if you have any problems 15 at all to please see them at the outside desk. I have some 16 telephone numbers in which you can take telephone calls or 17 fax messages. 18 I'm sorry that Leslie Ackers, who spoke with several of 19 you regarding financial matters, wasn't able to make it 5 1 today. And, I would like everyone to know that the 2 telephones and restrooms are the second right. Take two 3 rights as you go out the door. 4 I have also received a great deal of help as we have 5 put this together from a number of individuals and 6 particularly from Paul Portney and Peter Diamond, Terry 7 Smith and Bob Shelton. I am very grateful for the help I've 8 gotten from them. 9 And, I'm also grateful for the support we got from the 10 Department of Energy and from the EPA. If their 11 representatives have a few words to say to you as we begin 12 today -- they gave us a great deal of support and a great 13 deal of freedom with the agenda to pursue for this 14 conference. 15 In particular, Don Rosenthal and Howard Bruenspeck with 16 DOE helped us out; and, Mary Jo Kiley. They have been 17 supportive. They also provided the resources that have made 18 this possible. And, for that we are very happy. 19 As you know, the theme that we have settled on for this 6 1 is a research agenda or research questions. And, for that 2 we want to encourage as broad as possible participation. 3 We have prepared a set of draft papers. I hope 4 everyone has received a set. Some of those have been 5 updated. And, make sure that you stop by the desk and have 6 the latest papers that are available. 7 I want to encourage you to provide written comments or 8 other comments from the audience so that we may have the 9 benefit of your thoughts. And, our goal will be to put out 10 a published conference volume. So, please give people your 11 best ideas along the way. 12 We are going to have a transcript of the meeting. And, 13 as a consequence, anyone that speaks will need to speak into 14 a microphone so that they can be recorded. We have two 15 microphones here and we have microphones in the front. 16 I will make sure that this document is placed in the 17 reading rooms at EPA and DOE. And, we will make electronic 18 copies. 19 It's going to be a big document. And, I'm not going to 7 1 attempt to send it to everyone. But, if you have a need for 2 it, we will make sure you can get a disk of it or something 3 like this. 4 Finally, we are going to prepare some summary 5 statements of what the research agenda looks like. We will 6 mail it to everyone for your comments. 7 But, if you have comments before we do that, please 8 feel free to send them directly to me or to Jim Cohn. And, 9 we will try to incorporate them early on. 10 Finally, I would like to introduce our Chair for today, 11 Paul Portney, who is currently the Vice President and Senior 12 Fellow at RFF. Paul is a former Director of the Center for 13 Risk Analysis and the Quality Environment Division. 14 He has done a variety of things. He has been a Chief 15 Economist for the Council of Environmental Quality. 16 He has spent some time at Cal, Berkeley and some time 17 at Princeton. He received his Ph.D. from Northwestern 18 University. 19 And, I think, as everyone in the room knows, he has 8 1 been a very serious player and publishing very widely and 2 participating in a variety of different events that are 3 related to the environment and the evaluation of risk 4 analysis. 5 So, Paul, I would like to thank you very much for doing 6 this in chairing this meeting. 7 DR. PORTNEY: David, thank you very much. I have a few 8 very brief introductory remarks to make. 9 I think before I do that I want to give both Abe Haspel 10 of the Department of Energy and Al McGartland of EPA, the 11 guys who put up the money for this conference, an 12 opportunity to say a few words. So, Abe, come on up. 13 MR. HASPEL: Thank you, Paul. On behalf of the 14 Department of Energy, welcome to the DOE and EPA Workshop on 15 Contingent Valuation. 16 I would like to thank all of you for taking time away 17 from your other commitments to be here today. And, now that 18 you are here, I encourage you to share your thoughts and 19 ideas about contingent valuation. 9 1 Your participation in the discussions will assure that 2 this workshop is a success. And, that's what we all want. 3 As David noted, the purpose of this workshop is to help 4 set an agenda for future research on contingent valuation 5 methods. Toward this end, we have commissioned 13 papers 6 covering a variety of topics on contingent valuations. 7 I hope that you've had a chance to review some of the 8 papers before coming here today. We pushed hard to get the 9 papers mailed to you before the conference. 10 My personal thanks to all of the authors who have 11 completed their papers on time. As you all know from a 12 variety of conferences, when the papers are still coming in 13 it makes it much more difficult to participate. So, again, 14 thanks to all the authors. 15 Another round of thanks goes to the Steering Committee 16 that helped select the topics and authors for the workshop 17 papers -- Paul Portney, Peter Diamond, and early in the 18 workshop planning process, Terry Smith. All patiently 19 discussed various topics and corresponded with all of the 10 1 authors. Without their help, we wouldn't be here today. 2 In addition to being on the Steering Committee, Paul, 3 as you know, has graciously agreed to moderate the workshop. 4 You will note that benefit from his talents as a moderator 5 during the next day and a half. 6 Many of you are aware of the controversy surrounding 7 the use of contingent valuation today. Much of this 8 controversy relates to natural resource damage assessment 9 regulations now being promulgated by the Department of the 10 Interior and NOAA. 11 I would like to tell you a short story about a 12 controversy that I was involved in on the same topic 15 13 years ago. Reid Johnson and I were both working as Economic 14 Policy Fellows and had just joined the Department of the 15 Interior when we were asked to participate in a project at 16 Bryce Canyon National Park. 17 The Park was being threatened by the development of the 18 old coal field about seven miles off of Yovimpa Point. And, 19 so they had come to the Policy Office where Reid and I were 11 1 both having our fellowship and said, "Can you help us?" 2 So, Reid and I, being good students of this area, 3 decided, well, what we would do, we would be real smart and 4 we would do a contingent valuation study of the visitors and 5 try to get a handle on what the Park was worth.
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