ECON6003 2020-21 Problem Set Template p.6 Q3 (10 marks) Consider the following hypothetical example of a contingent valuation survey conducted in a city in Country A. The following survey questionnaire was distributed among all households in the city. 'We would like you to consider an improved municipal waste collection service for your household. We as a community aim to increase our community's re- use and recycling rate of our e-waste, from close to zero to 20 per cent, to improve sustainability of our resource use. The table below presents the summary of our proposed e-waste collection plan. Current No service Proposed Twice per month Collection frequency No service Types of e-waste to be collected Large Small household appliances (e.g., toasters, clocks, hair dryers); household appliances (e.g., fridges, radiators, TVs, air conditioners); Tools (e.g., drills, lawn mowers); Toys and leisure equipment (e.g., electrical train sets, speakers, DVD players) No service Mode of waste collection and transportation By private companies contracted by the city. A bin will be provided for small appliances, tools and toys. For large appliances, you will be asked to fill in an request form so that a collecting team will schedule a visit your home. Online None Method of payment An increase in the Council Tax How much of an increase in the Council Tax would you be willing to pay for the proposed service?' Please state the amount. The increased tax rate will be effective, starting the calendar year of 2021, when the new e-waste collection service begins. Your student ID number: ECON6003 2020-21 Problem Set Template p.7 3a. The City Council would like to use the survey result to evaluate the feasibility of introducing the proposed introduction of their e-waste collection service. The Council also intends to use the survey data to learn how much its community members value the sustainability in their resource use. Explain two of the known potential issues for utilising the survey data, reflecting on the commonly identified issues surrounding the contingent valuation method. (4 marks) (Issue 1) (Issue 2) ECON6003 2020-21 Problem Set Template p.6 Q3 (10 marks) Consider the following hypothetical example of a contingent valuation survey conducted in a city in Country A. The following survey questionnaire was distributed among all households in the city. 'We would like you to consider an improved municipal waste collection service for your household. We as a community aim to increase our community's re- use and recycling rate of our e-waste, from close to zero to 20 per cent, to improve sustainability of our resource use. The table below presents the summary of our proposed e-waste collection plan. Current No service Proposed Twice per month Collection frequency No service Types of e-waste to be collected Large Small household appliances (e.g., toasters, clocks, hair dryers); household appliances (e.g., fridges, radiators, TVs, air conditioners); Tools (e.g., drills, lawn mowers); Toys and leisure equipment (e.g., electrical train sets, speakers, DVD players) No service Mode of waste collection and transportation By private companies contracted by the city. A bin will be provided for small appliances, tools and toys. For large appliances, you will be asked to fill in an request form so that a collecting team will schedule a visit your home. Online None Method of payment An increase in the Council Tax How much of an increase in the Council Tax would you be willing to pay for the proposed service?' Please state the amount. The increased tax rate will be effective, starting the calendar year of 2021, when the new e-waste collection service begins. Your student ID number: ECON6003 2020-21 Problem Set Template p.7 3a. The City Council would like to use the survey result to evaluate the feasibility of introducing the proposed introduction of their e-waste collection service. The Council also intends to use the survey data to learn how much its community members value the sustainability in their resource use. Explain two of the known potential issues for utilising the survey data, reflecting on the commonly identified issues surrounding the contingent valuation method. (4 marks) (Issue 1) (Issue 2)
