Economic Valuation of Damages Due to the Prestige Oil Spill in Spain



Download 0.53 Mb.
Page3/5
Date07.02.2018
Size0.53 Mb.
#40064
1   2   3   4   5

  1. If continue the process.

  2. If pool cells j and j+1 into 1 cell with boundaries (

  3. Repeat (d) until cells are pooled sufficiently to allow for a monotonic increasing cdf.

  4. Calculate the pdf as the step function difference of the cdf.

This manual approach yields closed form solutions for single referendum questions. In addition to its easy computation, another main advantage of the Turnbull model is the direct calculation of the variance of the pj’s, which is also straightforward. In the Turnbull the Fj’s are the cdf and the pj’s are the pdf. Since Fj and Fj-1 have zero covariance, then the variance associated with the pj’s is obtained as:

(2)

Previous studies that use the Turnbull distribution (such as Kriström (1990); Carson, Wilks and Imber (1994); Hutchinson et al.(2001)) assumed that the true distribution function is piece-wise linear between the point estimates of the empirical distribution function (edf), and that such distribution is bounded by an arbitrary upper bound. Given the previous literature, the mean lower bound WTP for the oil spill prevention program is given by:



Download 0.53 Mb.

Share with your friends:
1   2   3   4   5




The database is protected by copyright ©ininet.org 2024
send message

    Main page