OIDD 261 Lecture Notes - Lecture 8: Firestone Tire And Rubber Company, Public Participation
Notes on Slides 13:
Using Risk Ladders to determine Perceived Risk
Develop Regression Equations for Health Risk Judgments
Illustrative Examples:
• Radioactive Material from Junkyard (Brazil)
• Yucca Mountain
• Alar
• British Beef
Strategies for Dealing With Stigma:
• Better design of products (Ford Pinto; Firestone Tires)
• Better design of facilities
• Need to increase trust in experts, managers and institutions
• Trust is easier to destroy than create
• Sources of bad news are more credible than sources of good news
• Public participation in decision making process
• Reduce social amplification
• Educate media
• Educate government
Reduce Stigma Impacts:
• Provide insurance
• Insure new facilities
• Guarantee property values
• Provide compensation
Notes on Slides 14:
Use and Non-Use Value
Use Value:
• Value attached to consuming or experiencing the good (or bad) personally
Non-use value (existence value)
• Value attached to knowledge that certain goods exist even if person doesn’t benefit from
them (maybe future generations)
Willingness to Pay and Willingness to Accept for Use and Non Use Values
• Use of surveys to elicit respondents
• Open ended question
• closed-ended iterative bidding (upping value for every “no”)
• Contingent ranking method: which would you prefer? A tax for waste far from you or a
rebate for waste close to you?
• Referendum Method: contingent combined with closed-ended iterative
Personal interviews>telephone surveys> mail surveys
Use WTP to prevent a future incident rather than one that has already occurred
Have a clear scenario that is understood by people
Follow-up questions so that one is sure that scenario and choice is understood
WTP is independent of inclusiveness of the question
• The higher the moral satisfaction the higher the WTP (embedding effects occur)
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Document Summary
Illustrative examples: radioactive material from junkyard (brazil, yucca mountain, alar, british beef. Reduce stigma impacts: provide insurance, guarantee property values, provide compensation. Use value: value attached to consuming or experiencing the good (or bad) personally. Non-use value (existence value: value attached to knowledge that certain goods exist even if person doesn"t benefit from them (maybe future generations) A tax for waste far from you or a rebate for waste close to you: referendum method: contingent combined with closed-ended iterative. Use wtp to prevent a future incident rather than one that has already occurred. Have a clear scenario that is understood by people. Follow-up questions so that one is sure that scenario and choice is understood.