Journal of Forest Economics > Vol 16 > Issue 3

Designing a forest-energy policy to reduce forest fires in Galicia (Spain): A contingent valuation application

Mario Soliño, , solino.mario@inia.es Albino Prada, , aprada@uvigo.es María X. Vázquez, , maxose@uvigo.es
 
Suggested Citation
Mario Soliño, Albino Prada and María X. Vázquez (2010), "Designing a forest-energy policy to reduce forest fires in Galicia (Spain): A contingent valuation application", Journal of Forest Economics: Vol. 16: No. 3, pp 217-233. http://dx.doi.org/10.1016/j.jfe.2009.11.006

Published: 0/8/2010
© 0 2010 Mario Soliño, Albino Prada, María X. Vázquez
 
Subjects
 
Keywords
JEL Codes:Q23Q42Q48Q51
BiomassContingent valuationOpen-endedHeckman sample selectionProtest responses
 

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In this article:
Introduction
Methodology: contingent valuation and elicitation formats
The survey instrument
The payment vehicle: identifying protest responses
Contingent valuation results
WTP aggregation and conclusions

Abstract

Recent issues of this journal have presented an interesting debate regarding forest fires in Galicia, Spain. This article proposes a forest-energy programme that will contribute to reducing the risk of forest fires in this Atlantic Region of Southern Europe. We apply the contingent valuation method to assess a programme whereby 10% of the electricity produced from coal, fuel oil and gas would be replaced by electricity generated in biomass power plants. The programme would begin implementation in 2005 and it would take 6 years (up to 2010) before we reach the 10% goal. The results show that Galician households are willing to pay a mean of 38 Euros per year. In addition, we have introduced an innovative procedure to detect protest responses related to the payment vehicle in a contingent valuation. Heckman's sample-selection procedure is used to analyse the WTP function.

DOI:10.1016/j.jfe.2009.11.006