Question

Allowed 4 questions please answer all 4

1.

Hedonic price methods may be used to do all of the following EXCEPT Select one: a. use travel cost and quantity of visits can to estimate demand curve for recreation site b. estimate the impact of pollution on home prices c. indicates how workers willingly expose themselves to elevated risk levels to have more resources that income can buy. d. estimate the impact of climate change on agricultural land values

2.

3.

4.

Answer 1

Answer a :-

Correct option : C

Reason : The demand for the recreational site it is determined by Hedonic travel cost method which is a technique that reveals how much users are willing to pay for the individual characteristics of outdoor recreation sites. The prices of Recreation attributes are estimated by regressing travel cost on the bundle of characteristics associated with each of several potential destination sites.

While option B and C pricing can be determined by using the value of surrogate good or service to measure the implicit price of a non market good .For example house prices can be used to provide a value of particular environmental attribute

Answer b :-

Step 1 :-

Define the market scenario.

Step 2 :-

Determine method of collecting data (mail, telephone, interviews, etc ).

Step 3 :-

Determine the elicitation method (direct questions, discrete choice, bidding game, etc)

Step 4 :-

Determine sample size , method to reduce bias, etc

Step 5 :-

Determine the functional form of model.

Step 6 :-

Estimate the demand function.

Answer c :-

Correct option : B

Include both market and non market benefits

Answer d :-

Correct option : C

Reason : use value is the value that people derived from direct use of the good however non use values the values that people assigned to economic goods even if they have never will never use. Non consumptive uses are generally considered those uses through which wildlife is washed, studied for recorded without being killed only for recreation education and research purpose .

Non consumptive uses will form a part of non use value.