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Use of damage schedules in environmental valuation: The case of urban Singapore

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  • Euston Quah
  • Edward Choa
  • K. C. Tan

Abstract

Increasing concerns over environmental degradation have amplified the role of environmental economics and the valuation of non-pecuniary environmental resources as tools of analysis to facilitate the design of policies. To date, however, environmental valuation methods have continued to be unreliable, misleading and contentious as a guide to resource allocations and damage compensations. In this paper, a damage schedule is developed based on the scales of relative importance translated from people's judgments about values of various environmental damages or losses. The variance stable rank method is applied to the paired comparison responses to obtain the scale values as well as the importance of rankings. Statistical tests of significance are used to determine the level of the agreement among the survey respondents and the degree of correspondence between different respondent groups. This will determine the number of relative importance scales required to adequately represent the responses from all respondents. The scales of relative importance will then be translated into damage schedules. The setting for analysis is based on urban Singapore.

Suggested Citation

  • Euston Quah & Edward Choa & K. C. Tan, 2006. "Use of damage schedules in environmental valuation: The case of urban Singapore," Applied Economics, Taylor & Francis Journals, vol. 38(13), pages 1501-1512.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1501-1512
    DOI: 10.1080/00036840500399842
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    References listed on IDEAS

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    1. Kahneman, Daniel & Ritov, Ilana & Schkade, David A, 1999. "Economic Preferences or Attitude Expressions?: An Analysis of Dollar Responses to Public Issues," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 203-235, December.
    2. Loomis, John & Peterson, George & Champ, Patricia & Brown, Thomas & Lucero, Beatrice, 1998. "Paired comparison estimates of willingness to accept versus contingent valuation estimates of willingness to pay," Journal of Economic Behavior & Organization, Elsevier, vol. 35(4), pages 501-515, May.
    3. George L. Peterson & Thomas C. Brown, 1998. "Economic Valuation by the Method of Paired Comparison, with Emphasis on Evaluation of the Transitivity Axiom," Land Economics, University of Wisconsin Press, vol. 74(2), pages 240-261.
    4. Ratana Chuenpagdee, 1998. "Damage Schedules for Thai Coastal Areas: An Alternative Approach to Assessing Environmental Values," EEPSEA Research Report rr1998081, Economy and Environment Program for Southeast Asia (EEPSEA), revised Aug 1998.
    5. Ratana Chuenpagdee & Jack L. Knetsch & Thomas C. Brown, 2001. "Environmental Damage Schedules: Community Judgments of Importance and Assessments of Losses," Land Economics, University of Wisconsin Press, vol. 77(1), pages 1-11.
    6. Patrucua Champ & John Loomis, 1998. "WTA Estimates Using the Method of Paired Comparison: Tests of Robutness," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(3), pages 375-386, October.
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    Cited by:

    1. Euston Quah, 2015. "Pursuing Economic Growth in Asia: The Environmental Challenge," The World Economy, Wiley Blackwell, vol. 38(10), pages 1487-1504, October.
    2. Mahasuweerachai, Phumsith & Pangjai, Siwarut, 2016. "Scope Insensitivity in Child's Health Risk Reduction: A Comparison of Damage Schedule and Choice Experiment Methods," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235577, Agricultural and Applied Economics Association.

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