1)The Kennebec River in Maine is a popular recreation destination for fishermen, paddlers, and hikers. In addition, the homes that line the river are desirable summer homes. Your consulting firm, Earth Inc., was contracted to determine the economic value of the environment along the Kennebec River waterway.

What valuation method would you use in your study? Define the two major categories and explain the differences between them. How do you decide which method to use?

If you decided to design and implement a survey to aid with your study, whatmajor steps do you need to follow? What are the most important steps that you would need to follow to come up with a valid and reliable survey?

What essential information do you have to capture in the survey?Design the information component of the survey instrument.

What is the target population for this study? Identify whose values you have to estimate.

What format for eliciting WTP amounts would you use? Why?

What seems to be the most suitable payment vehicle (e.g. how would you collect the money)? Why?What seems to be the most efficient way for administering this particular survey to your sample population? Why?

How many surveys you would administer? Why?

What potential measurement biases might arise in your survey? (Note: think about those that apply to this specific case and not stated preferences studies in general).

Provide several meaningful questions (8-10) that you would like to include in your survey, including the WTP elicitation question.