Contingent Valuation Method and the beta model: an accounting economic vision for environmental damage in Atlântico Sul Shipyard

Abstract

The objective of this paper is to apply the beta model as an alternative to the Valuation Method in order to estimate the environmental asset Willingness to Pay (WTP) so that the Tribunal de Contas do Estado de Pernambuco (TCE/PE) can supervise the Atlântico Sul Shipyard (ASS) as a negative environmental externality, which is discussed here from an accounting perspective. Our methodology is exploratory, and the beta regression model was used in the contingent valuation to estimate the environmental asset. The results allowed estimating the value of the Ipojuca mangrove at US$ 134,079,793.50, and the value of the environmental damage caused by the shipyard to the public asset was valued at US$ 61,378,155.37. This latter value is object of interest to the inspection body. However, the final estimated value of the Ipojuca mangrove prompts a discussion about the implications from an accounting point of view, such as the attribution of monetary value to a public asset that does not have a financial value, problems regarding the conceptualization and valuation of public assets for governmental patrimony. It is concluded that the beta regression model to estimate the WTP for contingent valuation will serve as a contribution to the research on accounting measurement techniques for public assets.

Valuation of Local Demand for Improved Air Quality: The Case of the Mae Moh Coal Mine Site in Thailand

“…The CVM is regarded as the most flexible valuation method in principle and can be designed to valuate basically any type of environmental goods, services, and externalities [50]. The method also appears to be the only way to elicit economic benefits of the non-use values of environmental goods such as the existence value and bequest value [51].…”

“…An alternative to address the limitations of the bidding approach is the payment card method, where researchers present a number of different values on different cards and ask the respondent to pick the amount that best represents his or her WTP [55]. Although this method can overcome the limitations of the bidding approach, it also has drawbacks as respondents might limit their WTP only to one of the values presented on the cards, or the WTP might be outside the range of the printed values [51,55].…”

Estimation of Communities and Tourists Willingness to Pay for Tsunami Disaster Mitigation of Marine Tourism in the Kalianda Coastal Area, South Lampung Regency

“…Post-tsunami management on the Kalianda coast is carried out by calculating the WTP for the management of coastal protection buildings aimed at people who live around marine tourism areas and tourists visiting marine tourism sites in Kalianda District. WTP analysis on coastal protection management uses several variables, namely age (Sathya & Sekar, 2012), income (Sathya & Sekar, 2012;Harini, Ariani, Fistiningrum, & Ariestantya, 2019;Travassos, Leite, & Costa, 2017) and education level. (Sathya & Sekar 2012;Travassos et al, 2017) which has an influence on WTP (Mehvar et al, (2017).…”

Influência de reserva florestal urbana no arrefecimento do microclima em uma capital amazônica

“…Um dos métodos utilizados é o Método de Valoração Contingente (MVC), que se utiliza da Disposição a Pagar (DaP) em relação à manutenção dos serviços (ARROW et al, 1993;MOTTA, 1997;PENA et al 2015;TRAVASSOS;LEITE;COSTA, 2018). Neste método, um mercado hipotético é criado no momento em que cada indivíduo da população atribui um valor monetário pela preservação dos ecossistemas, sendo dependente da preferência de cada um (CAMARGO, 2018;MAIA;REYDON, 2004).…”