Environmental and Resource Economics Workshop: Dr. A. M. Tanvir Hussain
| Dates: | 3 May 2016 |
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| Times: | 13:00 - 14:00 |
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| What is it: | Seminar |
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| Organiser: | School of Social Sciences |
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| Who is it for: | University staff |
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| Speaker: | Dr A. M. Tanvir Hussain |
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Environmental and Resource Economics Workshop
Title: Willingness to pay for environmental goods under uncertainty
Abstract:
We develop a microeconomic approach for valuing the benefits from a public environmental good under uncertainty and the possibility of insurance. Most environmental goods (and ecosystem services) are non-market-traded, and benefits from such goods are typically enjoyed under conditions of uncertainty. Uncertainty can arise from the environmental side (e.g. ecosystem or climate), or from the economics side (e.g. income). In this paper, we consider (binary) uncertainty in the provision of an environmental good. We use a constant-elasticity-of-substitution (CES) utility function, where utility depends on a market-traded consumption good and an environmental good which is exogenously provided in a fixed quantity. The CES function is nested in a constant- relative-risk-aversion form. As a benefit measure, we derive the marginal willingness to pay (WTP) for changes in (i) the probability of loss, (ii) the size of loss, and (iii) the current level of the environmental good. We also numerically explore the effects of subjective and objective risk parameters on income and environmental elasticities of marginal WTP.
Speaker
Dr A. M. Tanvir Hussain
Role: Senior Researcher & Lecturer
Organisation: University of Freiburg
Travel and Contact Information
Find event
G.030/31
Arthur Lewis Building
Manchester
