Measuring the value of remediation in muskegon lake
Download
1 / 24

Measuring The Value of Remediation in Muskegon Lake - PowerPoint PPT Presentation


  • 75 Views
  • Uploaded on

Measuring The Value of Remediation in Muskegon Lake. Dr. Paul Isely Seidman College of Business Grand Valley State University & Carrie Hause Elaine Isely. Funding. National Oceanic and Atmospheric Administration Great Lakes Commission

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Measuring The Value of Remediation in Muskegon Lake ' - marlie


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Measuring the value of remediation in muskegon lake

Measuring The Value of Remediation in Muskegon Lake

Dr. Paul Isely

Seidman College of Business

Grand Valley State University

&

Carrie Hause

Elaine Isely


Funding
Funding

  • National Oceanic and Atmospheric Administration

    • Great Lakes Commission

    • West Michigan Shoreline Regional Development Commission

  • Area of Concern in Muskegon Lake

  • $10 million ARRA funding

  • Socioeconomic monitoring


Purpose
Purpose

  • Hedonic Analysis of Housing Values

  • Travel Cost Study of Recreation Values

  • Contingent Valuation study of Use and Non-Use Values



Data

  • County assessor database

    • House characteristics

    • Sales information

  • AWRI shoreline inventory


Houses > 800m from Lake not Used

Houses affected by Lake Michigan not Used

Houses <100m from Lake not Used


Model
Model

LnPrice as a function or:

Floor area .000359***

Basement area .000118***

age -.00563***

age2 .000018**

Bear Lake .497***

Garage space .0562***

Industrial -.068

Stone .0529*

Bathrooms .0606***

Yearsold 2 - 20 SUPPRESSED

District2 -.24***

District3 -.26***

Occupancy2 -.18***

Occupancy3 -.0712

NEIGHBORHOODS SUPPRESSED

Distance Lake -.000151***

Lnnatratio .0297***

Lnhardratio -.0532***

_cons 10.7***

N 934

legend: * p<.1; ** p<.05; *** p<.01




Value of lake recreation
Value of Lake Recreation

  • Mailed survey as part of a CV study

  • A little more than 15% response rate


The question
The QUestion

To restore just 1 acre of wetland habitat in Muskegon Lake, 1 in every 300 households in Michigan would need to contribute $A to this fund. If more households contribute, more habitat can be restored.

Given your household income and expenses, would you be willing to make a one time, tax-deductible donation of $A? _____YES _____NO


The results
The Results

  • Model 1 - $2.5 Million

  • Model 2 - $9 Million

  • Average $5.7 Million

  • Re survey occurring this year to improve sample



Travel cost1
Travel Cost

  • Stated costs plus time cost

  • Calculated costs using mileage and normal expenses plus time cost

  • These were averaged together for the model estimations


Consumer surplus
Consumer Surplus

Value in $

Travel Cost

Trips

Quantity


Value of a trip 2009
Value of a Trip 2009

  • Coefficient on TRAVEL COST is -0.036

  • Value of a single trip is 1/(-βTRAVEL COST)

  • Value of a single trip to Muskegon Lake is $27.77




ad