Based on the findings described in the previous sections, the following information provides a reasonable basis for recommending an approach where general waterway health improvements on a significant waterway can be assessed (expressed as one-off payments in $2015): Meta-analysis of 16 choice modelling studies by Rolfe and Brouwer (2008) found an average WTP of $2.10 per km of waterway in good health per household Values provided by van Bueren and Bennett indicate a WTP of between $0.11 to $2.72 (midpoint $1.30) per km of improvement in waterway health per household on these, a WTP of $1.00 to $3.00 per Victorian household per km of significant water way returned to good health, or prevented from degrading, appears reasonable These values should be multiplied across a relevant number of households depending on the significance of the waterway. Where more specific attributes can be assessed for significant waterways, such as fish species or water quality attributes, it is recommended that values for the George River and/or Moorabool River be considered, as these both exist within an urban setting in large Australian cities and are more likely to satisfy benefit transfer requirements. Note that Georges River values (see Table 3) should only be applied to 38% of households when aggregating across Victoria to account for and 18% of households for the Moorabool River. Wetlands The literature revealed a range of wetland values depending on quality, size, and location. The typical range for preservation of wetlands was found to be between $0.0005 and $0.005 per hectare per household. For a Victorian application, this equate to between approximately $1,000 and $10,000 per hectare of wetland conserved, highlighting the large degree of uncertainty in these estimates. Bays
Based on the findings described in the previous sections, the following information provides a reasonable basis for recommending an approach where general waterway health improvements on a significant waterway can be assessed (expressed as one-off payments in $2015): Meta-analysis of 16 choice modelling studies by Rolfe and Brouwer (2008) found an average WTP of $2.10 per km of waterway in good health per household Values provided by van Bueren and Bennett indicate a WTP of between $0.11 to $2.72 (midpoint $1.30) per km of improvement in waterway health per household on these, a WTP of $1.00 to $3.00 per Victorian household per km of significant water way returned to good health, or prevented from degrading, appears reasonable These values should be multiplied across a relevant number of households depending on the significance of the waterway. Where more specific attributes can be assessed for significant waterways, such as fish species or water quality attributes, it is recommended that values for the George River and/or Moorabool River be considered, as these both exist within an urban setting in large Australian cities and are more likely to satisfy benefit transfer requirements. Note that Georges River values (see Table 3) should only be applied to 38% of households when aggregating across Victoria to account for and 18% of households for the Moorabool River. Wetlands The literature revealed a range of wetland values depending on quality, size, and location. The typical range for preservation of wetlands was found to be between $0.0005 and $0.005 per hectare per household. For a Victorian application, this equate to between approximately $1,000 and $10,000 per hectare of wetland conserved, highlighting the large degree of uncertainty in these estimates. Bays
18-01-12_Valuing-externalities_FINAL_updated-contact.docx