Marine-policy-zEstimating The Damage Cost of Plastic Waste in Galapagos Islands: A Contingent Valuation Approach
Marine-policy-zEstimating The Damage Cost of Plastic Waste in Galapagos Islands: A Contingent Valuation Approach
Marine Policy
journal homepage: http://www.elsevier.com/locate/marpol
A R T I C L E I N F O A B S T R A C T
Keywords: Plastic waste affects various ecosystems in the world. The oceanic islands are one of the most affected places by
Galapagos islands this type of material. A significant case of plastic pollution occurs in the Galapagos Islands. The Galapagos
Plastic pollution Islands, located west of Ecuador, have one of the most biodiverse ecosystems on the planet. It is the home of
Economic value
unique species in the world, and since 1978 it has been considered as a Natural World Heritage. However, the
Contingent valuation
Ecuador
Galapagos Islands are threatened by plastic pollution. Therefore, this study aims to quantify the cost of envi
ronmental damage generated by plastic waste in the Galapagos Islands. The non-market economic valuation
approach was used to implement contingent valuation. It was determined that the Willingness to Pay of Ecua
dorian families, to reduce plastic pollution, was between US$ 4.90 - US$ 14.51 per year, with a median of US$
7.65. This estimated value can serve as a reference to demand compensation from those who are generating
pollution. At the end of the document, public policies are discussed based on the results obtained.
* Corresponding author.
E-mail address: [email protected] (M.A. Zambrano-Monserrate).
1
Ecuador is divided into 24 provinces, and the provinces are divided into cantons. There are 221 cantons.
2
Since 1996 artisanal fishermen clean the most remote islands, but a record of the waste has only been kept for three years.
3
Entanglement due to oceanic plastic pollution is a threat to at least 243 marine species, in addition to being the deadliest [54].
https://doi.org/10.1016/j.marpol.2020.103933
Received 29 December 2019; Received in revised form 25 February 2020; Accepted 12 March 2020
Available online 31 March 2020
0308-597X/© 2020 Elsevier Ltd. All rights reserved.
M.A. Zambrano-Monserrate and M.A. Ruano Marine Policy 117 (2020) 103933
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M.A. Zambrano-Monserrate and M.A. Ruano Marine Policy 117 (2020) 103933
cases, animals such as blue-footed booby (Sula nebouxii) consume quality (31%), and dog feces (24%). 87% of British respondents
microplastic,4 which is a deadly chemical element for different species5 expressed a positive willingness to pay. British tourists were willing to
[4]. pay £ 1.03 per adult per visit, which gave an average of £ 0.90 for the
Some scientists mention that the most effective solution is to attack entire sample. Also, Brouwer et al. [18] analyzed the social costs of
the problem at the source; cleaning the beaches is only a partial mea marine litter along the coasts of three European countries (Greece,
sure. It is necessary to determine where the garbage comes from and Bulgaria, and the Netherlands). Using the choice experiment method,
thus design appropriate strategies to prevent contamination of the ar they found that Bulgarian beach visitors are willing to pay significantly
chipelago [4]. However, before implementing appropriate strategies more than Greek and Dutch visitors for both marine plastics washed
(policies and regulations), it is crucial to estimate the cost of environ ashore and cigarette butts left behind by visitors. Their results have
mental damage generated by these wastes in the ocean. The estimation important implications for the size and transferability of the social
of this cost represents an economic reference for environmental resto (estimated) costs of marine litter in Europe.
ration or compensation measures. In relation to the restoration and conservation of coastal ecosystems,
The non-market economic valuation (EV) allows these costs to be the work of Park et al. [19] stands out. They evaluated the conservation
quantified through an indicator measured in monetary units [10–12]. value of tidal planes in Shinan, Korea. In general, Korean households
The contingent valuation method (CVM) is one of the most used ap were willing to pay a significant amount for the conservation of these
proaches to quantify the costs of environmental damage [13]. While ecosystems. They estimated that the average WTP for the preservation of
many studies have used this methodology to quantify environmental the Shinan Tidal Flat was approximately KRW 3100 (US$ 2.75) per year
damage to air and water, few studies have used this method to estimate per household. They used the CVM. Along the same lines, Tonin [20]
the cost of damage (caused by plastic) to the marine environment [14]. used the CVM to estimate the willingness to pay for biodiversity resto
The work of Choi and Lee [13] stands out, who estimated the Willing ration and conservation scenarios in some unique coral habitats in the
ness to Pay (WTP) of the residents of Seoul (Korea) to remove micro North Adriatic Sea, Italy. They found that households are willing to
plastics from the ocean in that locality. They found that families are spend, on average € 35.42 one time only. They emphasize that prior
willing to pay an average of US$ 2.59 annually. knowledge and awareness of marine biodiversity are key determinants
After the literary review, no previous work on the subject is evi for the WTP.
denced in the studied location. Therefore, this research aims to estimate
the cost of environmental damage of plastic waste in Galapagos. The 3. Methodology
main results show that families are willing to pay on average between
US$ 4.90 - US$ 14.51 per year, with a median of US$ 7.65. The rest of 3.1. Contingent valuation
the document is structured as follows: literature review is presented in
section 2. The methodology is described in section 3. The results are The Galapagos Islands are a natural resource that lacks an explicit
presented in section 4. Section 5 concludes. market per se. As such, the valuation of a natural resource is different
from the valuation of market goods [21]. Lo and Jim [22] explain that
2. Literature review natural resources, not traded directly in the markets, can be assigned
monetary value by using the non-market Economic Valuation (EV)
As mentioned in the previous section, few studies have used the CVM method. Contingent Valuation (CV) is one of the most popular and used
to quantify environmental damage (caused by plastic) to the marine non-market EV methods [23].
environment. However, other studies have used contingent valuation The CV method analyzes people’s preferences directly for environ
and other direct and indirect methods to find economic values and mental goods or services [24]. This methodology is generally imple
promote the conservation of coasts and beaches. In this section, some mented using questionnaires designed following economic principles. In
studies with these characteristics are reviewed. the questionnaire, a hypothetical environmental improvement is pre
Beharry-Borg and Scarpa [15] economically valued a change in the sented, and implicit compensation is required between personal income
quality of coastal waters in Tobago. Using the choice experiment and environmental quality [22]. People who participate in the ques
method, they found that the specific individual means of the WTP esti tionnaire are asked to indicate their maximum WTP to avoid negative
mates vary significantly between two heterogeneous groups: those who environmental change (In this particular case, the deterioration of the
practice snorkeling and those who do not. The authors stress the Galapagos Islands due to plastic pollution).
importance of including individual preferences in the context of a
developing country where it is necessary to prioritize policy recom 3.2. Focus groups, pilot surveys and questionnaire design
mendations. This is due to limited financial resources and conflicting
objectives for the management of natural resources. Along the same Previous data collection, pilot surveys, and focus groups were con
lines, Loomis and Santiago [16] evaluated the improvement of water ducted in order to assess the questionnaire, following the recommen
quality in four beaches of Puerto Rico. Using the CVM and choice dations by Kanninen [25] and Haab and McConnell [26]. The focus
experiment method, they found that the average WTP was US$ 54 and groups were made up of 12 people over 18 years old who were interested
US$ 51 per visit, respectively. They concluded that there are no signif in the problem of plastic pollution in the Galapagos Islands. The selected
icant differences in WTP estimates between the two methods. people were chosen according to the “snowball6” non-probabilistic
Blakemore and Williams [17] used the CVM and travel cost method sampling method. Additionally, 30 pilot surveys were conducted
to value the beach of Olu Deniz, Turkey, economically. According their face-to-face with open-ended questions to people over 18. Both focus
results, the majority of beach users (70%) were British, who used the groups and pilot surveys were conducted in three cities: Quito, Guaya
beach for recreational activities and to enjoy open spaces and land quil, and Cuenca. At this stage, the hypothetical improvement scenario
scapes. They found that the main dislikes are garbage (41%), water was validated, and the frequency and schemes of the bids were defined.
The final questionnaire consisted of four parts. The first part evalu
ated the relationship of people with the environment and natural
4
Saltwater, the heat of the sun, and time degrade plastics forming
microplastics.
5 6
There are documented encounters of 693 wildlife species with marine First, a group of people was randomly selected to be interviewed. A person
debris, impacted through ingestion, entanglement, transportation and habitat interested in environmental problems was chosen from this group. In turn, he
alteration [54]. was asked to refer other people with the same characteristics.
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M.A. Zambrano-Monserrate and M.A. Ruano Marine Policy 117 (2020) 103933
resources. The second part first assessed and measured the knowledge 3.4. Bias control and payment vehicle
and importance of the population towards the problem of plastic
pollution in the Galapagos Islands. Subsequently, in this same section, CV studies highlight the importance of controlling the different
the respondent was informed about the problem of plastic pollution in biases that originate due to the methodology. As such, to control the
the Galapagos Islands. In the third part, the hypothetical improvement hypothetical bias,9 the valuation question was created to make the re
scenario and the various strategies to mitigate the different biases were spondents feel like they were paying the agreed money. Even more, the
raised and evaluated. In the last section, questions were asked about the survey reminded them that they had limited income and had to consider
socioeconomic characteristics of the population.7 their opportunity cost. Several studies back up that these types of stra
tegies reduce the hypothetical bias [24,27,33].
3.3. Sampling and measurement of WTP On the other hand, to control the strategic bias10, the survey speci
fied that if more than 50% of respondents agree to pay for the
This study reduced the sampling area to three cities in Ecuador: improvement, the policy would be implemented, and citizens would pay
Quito, Guayaquil, and Cuenca. These cities are considered the most for it. While, if more than 50% of respondents do not agree, the program
important in Ecuador, in addition to being the most populated. An would not continue. This procedure suggests to respondents that their
expert market research company conducted the survey. The sampling answers would affect the implementation of the policy, reducing the
technique that was used was the Proportionate Stratified Sampling. This presence of excessively large or small WTP values.
technique, belonging to the probabilistic sampling family, consists of Respondents who answered “no” to the general proposal were asked
dividing the entire population under study into different subgroups or a follow-up question about their main reason for not wanting to
strata so that an individual (families in this case) can only belong to a contribute to the program. The response options were: a) the competent
stratum. The stratum variable considered in this case was the cities. The authorities are already spending enough to fight the problem of plastic
sample size of each stratum was proportional to the population size of pollution in the Galapagos Islands, b) I do not trust that the money raised
the stratum. Thus, the optimal sample size for Guayaquil was 445 ob will be managed appropriately, c) It is not my job to finance this type of
servations, 451 for Quito, and 104 for Cuenca. The company randomly projects, d) My current economic situation does not allow me to pay, e)
selected a family from each stratum. Heads of households or spouses Plastic pollution is not a problem in the Galapagos Islands, f) There are
capable of making financial decisions and paying taxes were more important environmental problems than plastic pollution in the
interviewed. Galapagos Islands. The responses to the first three options were
This research used face-to-face interviews,8 as it has proven to be the considered as protest responses, while the other three options are true
most reliable approach in CV studies [27]. One of the points in favor is zeros [34,35]. Labao et al. [34] mention that reasons other than the
that interviewers can clearly explain the hypothetical market to re assumption that the good does not have value for the respondent and
spondents; therefore, they may have enough information to discern if money restrictions should be considered protest responses.
they are willing to pay for the proposed improvement scenario [24]. According to the results from the focus groups, the value for the
The sample was collected as follows: the interviewers visited the annual payment was chosen. Participants in the focus group said they
households in the sample and asked if they would participate or not in preferred annual fees since it was easier to picture it as a real situation
the survey. If they agreed, the interviewers started the survey. Other than other types of payment that could turn out as more complex or
wise, they were excluded from the sample, and the company extracted unrealistic. Egan et al. [36] discuss the advantages of using annual fees
new stratified homes from the sample. This procedure was repeated until over different types. The payment vehicle chosen in our study was an
the number of optimal observations for each city was obtained. The income tax. This type of tax is very realistic and fits very well with the
surveys were conducted between October 20, 2019, and November 22, annual payments that family heads can afford [13]. Also, it is used as a
2019, and follow up calls were placed to randomly selected respondents financial source for government policy, and it is closely related to the
to gauge the interviewers’ performance. policy of reducing plastics in the oceans and beaches.
The valuation question was raised as a consultative referendum.
Respondents answered a question about their maximum WTP for a 4. Results
public (hypothetical) program that reduces plastic pollution in Gal
apagos. In this study, the dichotomous choice format, presented by The most important results of this research are described below.
Bishop and Heberlein [28]; was used. It was recommended for the first First, some descriptive statistics on the relationship of people with the
time by the NOAA Panel to evaluate the credibility and reliability of the environment and natural resources are shown, particularly towards
CV method [29]. This approach is compatible with incentives, avoids the plastic pollution in the Galapagos Islands. Acceptance rates are also
lack of response and outliers, and represents a lower cognitive burden analyzed at each bid level. Subsequently, empirical estimates are shown
for the respondent [30]. Moreover, according to Borzykowski et al. [31]; using different parametric models. Finally, the WTP of people to reduce
this approach perfectly mimics a market situation, so it is relatively easy plastic pollution in the Galapagos Islands is estimated.
to understand.
Initially, respondents were asked if they were willing to pay for a
public (hypothetical) program that reduces plastic pollution in the
Galapagos Islands. If the respondents answered “yes,” then they were
given a bid where the respondents had to answer “yes” or “no” (in order
to accept or decline) the bid. Six different bids were established based on 9
The situation in which the interviewee could declare an exaggeratedly high
the results of the focus groups and the pre-test surveys: 0.25, 0.50, 1, 3,
WTP because the scenario of improvement is hypothetical [55].
5, and 10 US$. Each respondent was presented with a single randomly 10
Respondents may think that if the improvement is carried out, it will be
assigned bid from one of these six payment levels. Many studies, financed by the beneficiaries, according to the WTP declared in the surveys. If
including that of Zografakis et al. [32]; allow this random assignment. so, the interviewee will likely choose the least credible amount as a response.
On the other hand, the interviewee may be convinced that if the implementa
tion of the improvement program is carried out, it will be independent of their
7
The complete questionnaire can be found as supplementary material, which response. As [56] points out, “it is interesting for the person, from a selfish point of
was translated from Spanish. view, to give false signals, to pretend to have a lower interest than what is really had
8
In the CV methodology, the term “face-to-face interviews” is used to refer to in a certain collective activity,” to offer, in short, a strategic response, not an
the process of people responding to surveys. honest one.
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M.A. Zambrano-Monserrate and M.A. Ruano Marine Policy 117 (2020) 103933
4.1. Descriptive statistics of negative WTP. However, it does not solve the problem of infinite WTP
[31]. Also, mixed models like Spike Log-normal could be used. The Spike
The majority of respondents (71%) said that natural resources are model proposed by Kristro €m [41]; assumes that the data follow a
very important. However, only a small percentage (18%) of the total two-part distribution, with a mass of probability at a price of zero, fol
respondents said they participated as volunteers in an environmental lowed by a continuous probability distribution at nonzero prices [42].
organization. Also, only 29% of those interviewed said they had The estimates of the three models described above are shown in
collaborated financially with an environmental organization in the last Table 1. The main independent variable is the bid value that was pre
12 months. Attendance at training/talks related to the care of the sented to the respondents. Additional control variables were included
environment natural resources was also low. Only 33% of the heads of (see details in the Appendix). The inclusion of control variables should
household interviewed said they had attended such events. not alter the mean of the WTP since the latter is evaluated on the average
Regarding the problem of plastic pollution in the Galapagos Islands, of these variables. However, it allows controlling the heterogeneous
72% of respondents revealed that they did not know that the islands characteristics of the population [31]. In all models, the sign of the
have this problem. However, 65% of household heads consider the issue variable “bid” is negative and statistically significant. This result in
of plastic pollution in the area as very important. Fig. 2 dicates that the greater the bid, the lower the probability of people
Fig. 3 shows the relationship between different levels of bids and paying. This result is consistent with the findings of Ferreira and Mar
acceptance rates. For example, when the bid was US$ 0.25, the average ques [43] in Portugal, Jianjun et al. [44] in China, and Khong et al. [45]
acceptance rate was 70.5%. In contrast, when the bid increased to US$ in Vietnam.
10, the bid rate was reduced to 37.4%. In general, the higher the bid, the People’s relationships with natural resources influence their WTP.
lower the acceptance rate. On the other hand, the ratio of negative re Respondents, who said that natural resources are very important or
sponses is shown in square brackets. The relationship with the bid is important, are more likely to pay than those who consider this type of
positive. These findings are consistent with economic theory and show resources as not important. This finding is consistent with the results of
that the proposed program has a good level of acceptance. Tonin [20]; who emphasizes that the awareness/importance that people
give to natural resources is a key factor in explaining their WTP. Also,
those people who collaborated economically with an environmentalist
4.2. Empirical analysis
organization in the last 12 months are more likely to contribute mone
tarily than those who did not. Likewise, respondents who attended
Most CV studies often eliminate protest responses from the analysis.
training/talks related to the care of the environment and/or natural
However, the elimination of protest responses is only justified if the
resources during the last year are more likely to pay than those who did
group of protesters is not significantly different from the rest of the
not attend. Finally, those people who said that the problem of plastic
sample [37,38] and if these observations are a random part of the
pollution in the Galapagos Islands is a very important/important issue
sample that can be excluded without affecting the results [39]. If the
are more likely to pay than those who consider the issue as “not
above is not fulfilled, protest bidders are likely to declare a WTP value
important."
different from the rest of the sample. Therefore, eliminating these re
The effects of sociodemographic and economic variables on WTP are
sponses would be falling into a significant sample selection bias. Ghosh
also analyzed. This study demonstrates that income positively and
et al. [58] recommend estimating a two-step Heckman probit model to
significantly affects WTP. This finding is consistent with the studies by
account for this possible bias. Thus, this procedure was initially imple
Dribek and Voltaire [35] in Tunisia [44], in [47] in Norway. However, it
mented in our study. The equation of interest is the probit equation of
contradicts the findings of Cazabon-Mannette et al. [46] in Tobago, who
the calibrated dichotomous choice question.11 For the selection equa
found no evidence that the income affects the WTP of people by pre
tion, the dependent variable was the general valuation question.12 The
serving sea turtles in that locality. Other variables considered in the
null hypothesis of the likelihood ratio test of independent equations
present study were: “sex,” “age,” and “education.” There is no evidence
(rho ¼ 0) could not be rejected (X2 ¼ 0.33; p-value ¼ 0.6213), indicating
that these variables significantly affect WTP. Studies by other authors
that there is no evidence of selection bias.13
who have used CV have found similar results. For example, the educa
After checking the above, two simple parametric models were esti
tion of people was not significant in the Chen and Qi [48] studies in
mated: one logistic (with symmetric distribution) and another Log-
China and Indab [49] in the Philippines. Likewise, age did not affect the
Normal (with asymmetric distribution). Also, a mixed parametric
WTP of those interviewed in the study by Cook et al. [50] in Iceland. Sex
model was estimated: Spike Log-Normal (with asymmetric distribution).
was a non-significant variable in Tonin [20] research in Italy. Finally,
Previous studies have shown that the estimation of WTP (both mean and
there are no significant differences between the families of different
median) is sensitive to the assumption of distribution assumed [40].
cities in relation to their WTP.
The logistic model is the most used out of the simple parametric
At the end of each estimate, some goodness of fit tests are shown. The
models since the estimation of WTP is relatively simple compared to
likelihood ratio (LR) statistic is significant at 1% in the Logistic model
other models. Also, the results estimated by a logistic model usually
and Log-Normal model; this means that the coefficients of the slopes are
coincide with those estimated by non-parametric models [30]. However,
statistically significant jointly to explain the probability that people are
these types of models, being symmetrical, could yield a negative or
willing to pay or not. The same interpretation follows the Wald test for
infinite WTP. Both results from economic theory are not acceptable,
the Spike Log-Normal model. Also, count R2 is presented, which shows
since if an individual does not value a good, his WTP should be zero, and
the percentage of observations that the model correctly classified. For
not negative.14 Besides, the WTP should not be infinite, since this
example, in the Logistic model, 72.1% of the observations were correctly
regularly depends on the income of people, which is finite [30]. A
classified. Additionally, the probability of Pearson’s goodness-of-fit test
parametric model with an asymmetric distribution like the log-normal
is shown. In the Logistic and Log-Normal models, this value is higher
could better fit the true WTP. This type of model solves the problem
than 0.05, so there is a good fit of the estimated models. Finally, the
Akaike (AIC) and Bayesian (BIC) information criteria are presented.
11 That model, with the lowest information criteria, is considered the best
Excluding protest responses.
12 goodness-of-fit. In this case, the Log-Normal model meets that condition.
Including protest responses.
13
The full results of this procedure are not shown to save space but are
available upon request. 4.3. Estimation of willingness to pay (WTP)
14
A negative result could only be accepted if the public program can be
considered as a deterioration. The calculation of the WTP (mean and median) depends on the
5
M.A. Zambrano-Monserrate and M.A. Ruano Marine Policy 117 (2020) 103933
Fig. 2. Statistics on the relationship of people with natural resources and the environment. Elaboration: The authors.
Around the world, humans produce about 1.3 billion tons of plastic
assumption of the distribution assumed [40]. For example, the WTP that
arise from the “log” distributions is higher, due to the asymmetry and waste per year, a figure that will increase to 2.2 billion by 2025. In
countries like Ecuador, whose garbage collection services are limited,
the correct bias of these distributions. This result is standard, as recog
nized in Bengochea-Morancho et al. [51]. Thus, Table 2 shows that the some of these plastic wastes inevitably end up in the oceans or on the
beaches, where they have the potential to affect wildlife and human
mean WTP of the logistic model is much lower than the mean WTP of the
non-symmetric models. On the other hand, it is observed that the health [52].
In recent years, one of the places that have been most affected by
average of the logistic model is similar to the median of the log-normal
model. One possible explanation for this is that the median blocks the plastic pollution is the Galapagos Islands. The Galapagos Islands are one
of the most biodiverse places on the planet, and although 97% of its
asymmetric effect of the log-normal distribution, so its value could
approach the logistics average. The confidence intervals for each model islands are inhabited by humans, plastic waste from all over the world
reaches its shores. They reach the islands at such a high rate that it is
were estimated to determine if these differences are significant.
Because WTP measurements (mean and median) are non-linear almost impossible to keep their coastal areas clean. Many of the endemic
species that inhabit the islands live in piles of garbage, confusing plastic
15
nlcom in Stata.
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M.A. Zambrano-Monserrate and M.A. Ruano Marine Policy 117 (2020) 103933
Acknowledgements
waste with food, or getting trapped in the rubble [4].
Although numerous studies have analyzed plastic pollution in the All persons who have made substantial contributions to the work
world, few studies have focused on analyzing the effect of plastic reported in the manuscript (e.g., technical help, writing and editing
pollution on oceanic islands [53]. Even less, they have used economic assistance, general support), but who do not meet the criteria for
valuation approaches. Only recent work by Choi and Lee [13] stands authorship, are named in the Acknowledgements and have given us their
out, who estimated the WTP of the residents of Seoul (Korea) to remove written permission to be named. If we have not included an Acknowl
microplastics from the ocean in that locality. They found that families edgements, then that indicates that we have not received substantial
are willing to pay an average of US$ 2.59 annually. contributions from non-authors.
Considering the global importance of the Galapagos Islands, this
7
M.A. Zambrano-Monserrate and M.A. Ruano Marine Policy 117 (2020) 103933
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