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Thus, contributing to the jurisdiction unit by providing subsidies to audit the external control regarding the environmental impact on the public patrimony. This paper is divided into five sections, starting with this introduction; the next section presents the CVM and the contingent valuation using the beta regression model; the third section discusses the methodological approach used in this paper; the fourth section brings the analysis of the results; then the final considerations of this work.
In order to fulfill this non-existence, the Economy of the Environment and Natural Resources classifies the techniques of valuing between direct and indirect, being the direct methods based on information from existing markets, and the indirect ones based on hypothetically created markets.
As for the indirect methods, the CVM points out travel cost and substitute market or hedonic price Guerra et al. For this study, we used an open-ended elicitation as a way to obtain it, in which the questionnaire presents the following question: This method differs from others because of the possibility to capture the value of the existing natural resources.
Therefore, this is the great advantage of the CVM: The method has a high theoretical validity, but it does not have a high market validity because it uses a market simulation model Porter, The main limitation of CVM is capturing environmental values that individuals do not understand or do not know. Another limitation concerns the method biases that affect the reliability of the results, which should be minimized with the planning of the questionnaire, the sample and the appropriate structuring of its application Willis, In addition, another limitation of the method is the fact that individuals who may be willing to pay a stated amount for a particular asset but would not express the same value because of constraints in their budget, if they were asked to pay for a larger set of environmental benefits Motta, However, considering the recommendations of the National Oceanic and Atmospheric Administration NOAA panel, the surveys to be used in a CVM research should include a range of issues not only related to socioeconomic factors income, age, education levelas well as alternatives that support the interpretation of WTP values, like social and environmental variables.
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In addition to the caution regarding the research planning, the criteria established by NOAAhelp maximize the credibility and reliability of the CVM in the polls. From that work, several econometric models have been proposed in the literature to estimate the WTP, among these, probit and logit were the most traditional models. However, traditional parametric models fail to represent the empirical data distribution, leading to specification errors bias and inconsistent results with microeconomic theory, for example, a negative WTP.
The idea of using the beta regression model with CVM is precisely to use the versatility of the beta distribution to model a variety of uncertainties, so that a more flexible model allows a better grasp of the "nuances" of the sample data, obtaining an improved estimative of WTP. The model was used for the first time as an alternative econometric approach in the CVM in Leite and posteriorly Travassos aiming to obtain better adjustments to the sample data and, therefore, a more improved estimative of the maximum WTP, in addition to meet the minimum criteria necessary to estimate the WTP.
The use of the beta model with the CVM is defined from a continuous response variable in the interval 0; 1 that represents the proportion of income that the individual is willing to spend with the public or environmental asset. Let us hear it in the comments below.
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