Estimating the economic value of trees at risk from a quarantine disease

Authors

  • F.J. Areal
  • A. MacLeod

Abstract

The total economic value of tree species susceptible to Phytophthora ramorum, the causative agent of sudden oak death, was investigated in North Yorkshire. The results of a dichotomous-choice contingent-valuation study, using a ‘follow-up’ dichotomous-choice question, are presented. Two approaches were used in order to obtain the mean willingness to pay (WTP): a bivariate probit model that provides information about the crucial variables that affect the WTP, and the maximization of a loglikelihood function that accounts for a double-bounded bid. Previous studies suggest that the second approach produces more accurate estimates. Using both methods the mean WTP was estimated to be approximately £55 per annum per individual taxpayer over five years. This is similar to values placed by the public on trees susceptible to P. ramorum in California, USA

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Published

2007-02-01