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Practical tools for value transfer in Denmark – guidelines and an example

Appendix A: Table of Danish primary valuation studies on priority environmental goods

Water

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/indivi-dual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Hasler, B., Lundhede, T., Martinsen, L. Neye, S. & Schou, J.S.: Valuation of groundwater protection versus water treatment in Denmark by Choice Experiments and Contingent Valuation, NERI Technical Report no. 543. 2005 2004 CE and CV
Payment vehicle:
Increase in annual water bill
Elicitation format CV:
Payment card
Interview method:
Postal
Population:
Danish population
Sample:
Representative of the Danish population
Testing/focus group
Pre-tested questionnaire		 WTP per household/year
CE:
Naturally clean groundwater 1,899
Very good conditions for plant and animal life (i.e. good surface water quality) 1,204
Total 3,104
Purified water 912
CV:
Very good conditions for plant and animal life   (i.e. good surface water quality  711
Purified water 529		 1,899
1,204
3,104
912
711
529		 n = 584
Response rate = 65%


Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/individual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Toivonen, A.L., Appelblad, H., Bengtsson, B., Geertz-Hansen, P.,
Gudbergsson, G., Kristofersson, D., Kyrkjebo, H., Navrud, S., Roth E.,
Tuunainen P.and Weissglas, G.: Economic Value of Recreational Fisheries in the Nordic Countries. Nordic Council of Ministers, 2000.		 October 1999 - January 2000 CV
Payment vehicle:
Increase in income taxes
Elicitation format
CV: DC and OE
Interview method:
Postal
Population:
Danish
Sample:
Representative
Testing/focus group:
Pretest		 WTP/inidividual/year
Use value
Recreational fishing
Salmon and sea trout
River: 809
Perch, pike, pike-perch
Lake: 648
Grayling, brown trout, arctic char Lake : 889
Use and non-use value Preservation of  Nordic freshwater fish stocks:
2150		 901
722
990
2395		 The sample size was 25 000 Nordic citizens aged 18 - 69.
n = 2 376 in Denmark
Response rate = 45.8 %.

Landscape

Reference/
Authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/individual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Jordal-Jørgensen, J.,  : Samfundsmæssig værdi af vindkraft. Copenhagen, Denmark. 1995. 1995 CV and
(simplified) HP
Payment vehicle:
Not known
Elicitation format CV:  Not known
Interview method:
Personal
Population:
Houses next to windmills across Denmark
Sample:
Not known
Testing/focus group
Not Known
HP		 WTP  for moving the windmills per household/year
1236 DKK /year for the households that said they were annoyed by the windmills and stated their WTP
All wind mill sites
0.0004 DKK/kWh
Single mills
0.0011 DKK/kWh
Clusters of mills
0.0009 DKK/kWh
Wind parks
0.0002 DKK/kWh
All wind mill sites
0.0098 DKK/kWh		 0.0047
0.00128
0.00105
0.0023
0.01140		 A random sample of 102 of 1,931 wind farms was drawn, and used for CV and HP6.1.1.1.1.1 CVn = 281
Response rate = 71 %6.1.1.1.1.2 HP Property prices of 74 properties situated close to windmills were studied
Reference/
Authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/individual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Anthon, S. and Thorsen, B.J.  2002: Værdisætning af statslig skovrejsning. En husprisanalyse [Valuing afforestation – a hedonic approach]. Report for the Forest and Nature Agency, Ministry of the Environment, Denmark, 57 pp. Data collection
1984-2001		 HP
True Skov by Århus (100 ha) and Bakkely Skov by Vemmelev (60 ha.)
Model assuming that WTP as house price decline with increasing distance to the forest.		 HP
True Skov
29 – 32 mill
Bakkely Skov
 2 - 4 mill. 		29.9 – 33 mill
2.1- 4.1 mill		 598 houses  for  the community of  True
233 houses for
Vemmelev community
Boiesen, J., Jacobsen, J.B., Thorsen, B.J., Strange, N. & Dubgaard, A. 2005.
Værdisætning af de danske lyngheder. Arbejdsrapport,  KVL, Frederiksberg.		 2004 CE and CV
Payment vehicle:
Annual income tax earmarked for the purpose
Elicitation format:
DC
Interview method:
Postal
Population:
Danish population
Sample:
Representative of the Danish population
Testing/focus group
Pre-tested questionnaire sent to 200 respondents		 WTP per household/year
CE:
Increased area of moorland
400-750
CV
Increased area of moorland
300		 400-750
300		 n=899
Response rate=56.7 %

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/individual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Bjørner, T., Russel, C.F., Dubgaard, A., Damgaard, C. & Andersen, L.M. 2000: Public and private preferences for environmental quality in Denmark, AKF forlaget. 1999
Comment:
Survey for testing methodological  issues like the framing
effect		 CV
Payment vehicle:
Annual pass for a forest and lake area
Elicitation format:
OE
Interview method:
Postal
Population: Respondents were chosen in three municipalities close to Tokkekøb Hegn
Sample:
Representative 
Testing/focus group
Focus groups and pretesting		 WTP/individual
for an annual admission card
233-261 annually
for access to
Tokkekøb Hegn		 252-283 n = 2 581
Response rate = 69.8 %

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/indivi-dual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Dubgaard, A.: Economic Valuation of Recreation in Mols Bjerge. 1996. AKF Forlaget SØM publikation, 11,1-230. 1991-1992 CV
Payment vehicle:
A lump sum for unlimited admission to Mols Bjerge area during a one year period (annual pas).
Elicitation format:
OE and DC
Interview method:
Self-fill questionnaire
Population:
130 000 estimated users of the area
Sample:
On-site sampling on 20 representative visit days during one year. Weighting to adjust for on-site sampling bias.
Testing/focus group:
No information given. 		WTP/individual
for a annual admission card
44-71
(30 – 50  per
activity day)		 56-84
(38 – 56  per
activity day)		 n = 3000 divided in 13 sub-samples

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/individual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Dubgaard, A.: Economic Valuation of Recreational Benefits from Danish Forests, in S. Dabbert, A. Dubgaard, L. Slangen & M. Whitby (Eds.): The Economics of Landscape and Wildlife Conservation, CAB International, Wallingford, UK, 1998. [53-64] 1993-1994 CV
Payment vehicle:
Lump sum for unlimited admission to all Danish forests for one individual during a one year period (Annual Pass)
Elicitation format:
OE
Interview method:
Mail questionnaire
Population:  
Permanent residents in Denmark within the age groups 15-76 years
Sample: Representative of the population.
Testing/focus group:
No information given.		 WTP/individual
for a annual admission card
128  		165 n = 2 424
Response rate = 83.7%

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/indivi-dual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Hasler, B., Damgaard, C.K., Erichsen, E.H., Jørgensen, J.J. & Kristoffersen, H.E. 2002: De rekreative værdier af skov, sø og naturgenopretning. - værdisætning af naturgoder med husprismetoden. AKF Forlaget. Data collection
1985-2000		 HP
Houseowners' willingness to pay for forest amenities in four forested areas in Denmark. The analysis also includes an analysis of the houseowners'
willingness to pay for lake views in six lake areas in Denmark and for houses close to the forest.  		HP
Houses with a view to a lake are on average valued 125,000 higher
Covering differences
between the lakes the value ranges from 330,000 at one lake and to 0 at another.
House prices are declining by 0.04%
when the distance to the forest increases by 1%.		 129,000
341,000		 289 transactions
for lake view
1 483 transactions
for forest

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/
individual and per year or as a one-time amount)		 WTP
in 2005-DKK		 Sample size
Olsen , S. B. &  Lundhede, T.  2005: Rekreative værdier ved konvertering til naturnær skovdrift. En værdisætningsunder-søgelse udført vha. metoden Discrete Choice Experiments. Specialerapport, akf-forlaget. 2004.
Comment:
Master thesis.		 6.1.1.2 Choice Experiment Interview method:
Postal
Population:
Danish population
Sample:
Representativeness discussed
Testing/focus group
Pre-testing and focus groups		 WTP per household/year
Conifer to deciduous forest 770
Conifer to mix of deciduous and conifer 969
Deciduous to mix of conifer and deciduous 199
Clear cut to shelterwood harvest regime 205
Clear cut to selective harvest regime 856
From shelterwood to selective harvest regime 651
No dead trees left to some dead trees left for natural decay 114		 770
969
199
205
856
651114		 n = 1200
Response rate: 57%

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/individual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Termansen, M., C.J. McClean, and R. Scarpa: "Economic Valuation of Danish Forest Recreation Combining Mixed Logit Models and GIS", Paper presented at the Association of Environmental and Resource Economists Conference. Budapest, Hungary.  2004 1994 and 1997 DKK Count data models, Travel cost method – RUM
Value of day-trip forest recreation in Denmark, and of various improvements to forest recreation sites viewpoints
The probability of an individual choosing each site was modelled as a function of travel costs; forest area; proportion of broadleaved trees; site proximity to the coast; natural area bordering the site.		 Fixed Parameter Model
Mixed Mean Value Per Trip (DKK/Trip) 22.8   
Maximum Value for a Site (Million DKK/Year) 5.6
Minimum Value per Trip (DKK/Trip) 22,584  
Total Value for All Sites (Million DKK/Year) 1,301   
Logit Model   
Mixed Mean Value Per Trip (DKK/Trip) 24.7 
Maximum Value for a Site (Million DKK/Year) 14.2   
Minimum Value per Trip (DKK/Trip) 17,201   
Total Value for All Sites (Million DKK/Year) 1,405    		26.5
6.5
26,265
1,513
28.7
16.5
20,005
1,634		 On-site survey
n = 28,947;
Response rate = 50% was used to estimate the Random Utility Models.
Household survey
n = 812
response rate = 83.7% was used to estimate the total demand for recreational trips


Reference/
Authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/individual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Olsen, S.B., J. Ladenburg, M.L. Petersen, U. Lopdrup, A.S. Hansen and A. Dubgaard: Motorways versus nature – A welfare economic valuation of impacts. IMV-rapport 2005  2005 CVM – Postal
WTP to ensure realisation of preferred layout out of two possible layouts for the future Silkeborg motorway.
Population: People in Silkeborg and Gjern municipalities
CE – Internet and postal
WTP to protect different types of nature from encroachment by a new motorway
Population: The Danish population
Samples: Discussion of  Representativeness
Pre-testing and focus groups employed
A range of experiments is carried out		 Respondents preferring:
-             Resendal layout 660/477 DKK (Open ended(OE)/double bounded dichotomous choice(DBDC))  per household per year
-             Ringvej layout 1023/542 (OE/DBDC) DKK per household per year
Forest:
From 10 to 5 km motorway 460 DKK. From 10 to 0 km  motorway 912 DKK
Wetland:
From 5 to 2.5 km motorway 476 DKK
From 5 to 0 km motorway 783 DKK
Heath:
From 5 to 0 km motorway 341 DKK per household per year		 660/477
1023/542
460
912
476
783
341		 n = 2000
Response rate: 74%
Internet n = 5830
Response rate: 50.1%
Postal n = 600
Response rate: 60.5%


Ecosystem function and biodiversity

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/indivi-dual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Bjørner T., Hauch, J.  & Jespersen, S.  2004: Biodiversitet, sundhed og usikkerhed - en værdisætningsunder-søgelse ved contingent ranking metoden. Working paper from the secratariat of the Danish Economic Council (DØRS). 2004. 2004 CR
Payment vehicle:
Increase in the price of food products
Interview method:
Personal interview
Population:
Danish population
Sample:
Representative of the Danish population
Testing/focus group
Focus group and pre-test		 WTP per household/year
213-230 DKK annually
per household for a one percent increase in the population of birds.		 213-230 n = 1000
Response rate not given.

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/indivi-dual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Lundhede, T., Hasler, B. & Bille, T. 2005 Værdisætning af naturgenopretning og bevarelse af fortidsminder i Store Åmose i Vestsjælland. Skov og Naturstyrelsen, København.
2005		  2005 6.1.1.3 CE Payment vehicle:
Additional tax
Interview method:
Internet based questionnaire
Population:
The entire Danish population
and locally in the area of Store Åmose
Sample:
A sample of the population of the entire country and a sample of the population of West Zealand.
Testing/focus group
Pre-test and
focus groups		 WTP per individual /year
DKK 500 per year per person for changing Store Åmose’s currently
»low biological diversity« to a higher level described as »high
biological diversity		 500 n = 1,636
Response rate 51%.

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/indivi-dual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Hansen, M. 2005: Værdien af at genoprette naturen i danske ådale.Værdisætning af rekreative og biologiske værdier - som resultat af tre vandmiljøplaner,  Vandramme- og Habitatdirektivet. Center for Skov og Landskab, KVL, København 2005 6.1.1.4 CE Payment vehicle:
Additional income tax
Interview method:
Postal survey
Population:
Entire Danish population
Sample:
Entire Danish population, but individuals with high income and high level of education are overrepresented
Testing/focus group
Pre-test and
focus group		 WTP per household /year
General scenario made for value transfer: “For a (hypothetical) wetland/river area near your home or holiday cottage”:
- Conversion from intensive agriculture to natural grass land (136), with wetlands (164) with scrubs/trees (252)
- Re-bending of streams: 410 DKK
- Improved living conditions for plants and animals; low to medium (257) or high (400)
- Access (320)
All above (i.e. largest improvement)		 136-252
410
257-400
320
1382 		n = 744
Response rate 53%.


Soil Quality

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/
individual and per year or as a one-time amount)		 WTP
in 2005-DKK		 Sample size
Szilas, C., A. Zeuthen Jeppesen & L. Kaalund 2005: Værditab ved salg af forurenede eller tidligere forurenede ejendomme med helårsbeboelse. Hovedrapport. Miljøprojekt nr. 1046. Rapport til Miljøstyrelsen og Amternes Videncenter for Jordforurening,
2005		 1996-2003
Residential property transactions		 6.1.1.5 Simplified HP Uses market price divided by officially assessed value with potential corrections for contaminated soils as a proxy for difference in housing and neighbourhood characterter-
istics.
Population:
Danish residential property  transactions that were listed in databases of contaminated or possibly contaminated sites = 7,756 transactions out of a total of 693,160 transactions for the period 1996-2003.		 Average percentage  (%) reduction in residential property market price for five categories of contaminated soils:
Suspicion  (possibly contaminated) 5.7
Contaminated 2.1
Cleaned up: 0.1
Residual contamination: 7.0
Investigated, but no findings: 7.8
Also available: Data for three Danish regions, urban/rural, and house/
appartment		 The present value of the welfare loss due to living in a contaminated or  possibly contaminated site can be calculated by multiplying the market price by the percentage reduction in property market price n = 6,925 residential property transactions


Marine and Coastal

Reference/
authors		 Year of data collection Valuation method and relevant information WTP (DKK in year of data collection) per household/individual and per year or as a one-time amount) WTP
in 2005-DKK		 Sample size
Ladenburg, J., Dubgaard, A., Martinsen, L. and Tranberg, J. 2005: Economic Valuation of the Visual Externalities of Off-Shore Wind Farms, Report from the Food and Resource Economic Institute, Report No. 178, Copenhagen. 2004 CE
Payment vehicle:
Increased annual  electricity bill per household
Interview method:
Postal
Population:
i) National population,
ii) Local population of Horns Rev (HR) and Nysted (NY) coastal areas
Sample:
Representative of the Danish poulation and the HR and NY areas
Testing/focus group
Focus group and pre-test		 WTP per household/year: For increasing the distance of wind farms from the shore from an 8 km baseline to 12, 18 and 50 km (when it is out of sight). Based on respondents’ choices between alternative off-shore wind farm locations and the associated increase in the electricity bill.
National sample:
12 km:  330
18 km   707
50 km   9046.1.1.5.1 HR local sample 12 km:  262
18 km   643
50 km   5916.1.1.5.2 NY local sample 12 km:  666
18 km   743
50 km   1223		 National sample:
12 km:  330
18 km   707
50 km   9046.1.1.5.3 HR local sample 12 km:  262
18 km   643
50 km   5916.1.1.5.4 NY local sample 12 km:  666
18 km   743
50 km   1223		 n = 362 (national),
n = 140 (HR)
n = 170 (NY)
Response rate = 51, 40 and 49 %, out of  700 national , 350 HR and 350 NY; respectively

 

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Version 1.0 December 2007, © Danish Environmental Protection Agency