U.S .Environmental Protection Agency
Science Advisory Board (SAB)

Committee on Valuing the Protection of Ecological Systems and Services (C-VPESS)
Summary Meeting Minutes of a Public Teleconference Meeting
12:30 p.m. - 2:30 p.m. (Eastern Time)

March 20, 2007

Committee: The SAB Committee on Valuing the Protection of Ecological Systems and
Services (C-VPESS). (See Roster - Attachment A.)

Date and Time: March 20, 2007, 12:30 pm - 2:30 pm (Eastern Time) (see Federal
Register Notice - Attachment B)

Location: Participation by Telephone Only

Purpose: The purpose of the teleconference is to discuss draft text developed by

committee members for a draft report related to valuing the protection of
ecological systems and services. (See Meeting Agenda - Attachment C.)

Attendees: Members of the C-VPESS:

Dr. Barton H. (Buzz) Thompson, Jr. (Chair)

Dr. Kathleen Segerson (Vice-Chair)

Dr. Ann Bostrom

Dr. Terry Daniel

Dr. A. Myrick Freeman

Dr. Dennis Grossman

Dr. Robert Huggett

Dr. Douglas MacLean

Dr. Harold Mooney

Dr. Louis Pitelka

Dr. Stephen Polasky

Dr. Holmes Rolston

Dr. Paul Risser

Dr. Mark Sagoff

Consultants to the C-VPESS
Dr. Joseph Arvai

EPA SAB Staff

Dr. Angela Nugent (Designated Federal Officer)

Other Members of the public (see Attachment D)

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Teleconference Summary:

The teleconference agenda (see Meeting Agenda - Attachment C) was adjusted
because there were no written comments submitted to the SAB and no requests for public
comment, and because Dr. Robert Costanza was not able to join the call. The committee
discussed draft text related to mediated modeling near the end of the call.

The DFO opened the meeting by noting that the proceedings conformed to the
requirements of the Federal Advisory Committee Act and that the members of the
chartered SAB had met the requirements of the Ethics in Government Act.

Dr. Buzz Thompson thanked members for their continued participation in the
series of teleconference calls. He confirmed that the final scheduled face-to-face meeting
of the committee would be help on May 1-2, 2007 in Washington D.C. He noted that he
had worked with Dr. Segerson and the DFO to identify "next steps" related to topics
discussed at the Committee's previous teleconference calls and asked C-VPESS members
to contact Dr. Nugent if there were questions about action items. He asked committee
members to refer to the March 9th draft report in their comments during the remaining
teleconferences.

A committee member asked whether the committee was planning any additional
teleconferences beyond the last scheduled C-VPESS teleconference on April 10th. Dr.
Nugent noted that some committee members had asked about mechanisms for providing
comments on components of the report not listed on the agendas for the six planned C-
VPESS teleconferences (February 27th through April 10th). Dr. Thompson responded that
he would consult with Dr. Segerson and Dr. Nugent about the best available approach.

Introduction to Methods Addressing Public and Group Expressions of Value (Part 2.
Section 4.5. pp. 78-79) and Referenda and Initiatives (Part 3. Section 6.2. pp. 282-292)

Dr. Thompson introduced the topic of "Public and Group Expressions of Values"
with a discussion of the "Referenda and Initiatives," since Dr. William Ascher had not
been able to participate in the call. He summarized the substantive written comments
received (see Attachment E), remarked that he believed Dr. Ascher would wish to
address all of them in revising the text, and committed to follow up with him regarding
revisions.

He noted a question relating to the broad issue of public and group expressions of
value and asked the committee whether the section should include any mechanisms for
obtaining "public and group expressions of value" other than referenda or citizen value
juries. He noted that there was no literature assessing the merits of jury awards as a basis
for valuation and observed that jury awards present a variety of potential problems.
Another member of the committee expressed concern about including in this section an
additional topic that was purely exploratory and was not supported by research related to
valuation. Dr. Thompson suggested including additional language in the introduction to

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Section 5 regarding the ability of various methods to gather revealed or stated valuation
information at a public level. He suggested that the language note that, although other
types of actions or decisions exist that might provide some insight into valuation at a
public level, the committee believes their use would raise concerns at the moment. Dr.
Segerson noted an additional related point. She suggested that the text on p. 78 line 20-
23 be modified to state that referenda and initiatives are just two examples of ways the
public and groups express values but not list any other specific approaches. She
suggested that the text identify the general topic of "public and group expressions" as an
area for future investigation.

The committee then provided additional oral comment. One member suggested
that the section include specific examples where referenda have been used as a basis for
valuation information. Dr. Thompson noted that he could provide Dr. Ascher with
references on benefits related to Napa Valley. Dr. Polasky noted that he could also
provide Dr. Ascher citations on open-space initiatives, where there were several good
examples that could illustrate how information on referenda have been used to obtain
valuation information. Dr. Thompson asked other committee members to send Dr.

Ascher any relevant citations.

Dr. Polasky also provided oral comment that the first sentence in section 4.5 on
page 78 (lines 5-7) should drop the words "as consumers." He noted that while economic
methods captured individual preferences, they were not necessarily exclusively restricted
to capturing consumer preferences. Economic stated-preference methods can be used to
gather responses about provision of a public good that may have an existence value.

Citizen Value Juries (Part 3. Section 6.3. pp. 293-301)

Dr. Thompson opened the discussion by summarizing written comments received.
He noted that he was reluctant to discuss in this subsection valuation inferences from
actual jury awards because they present special analytical problems. Again, he proposed
that the introduction to the section discuss such "alternative" methods of obtaining public
and group expressions of value briefly. He acknowledged the need to adjust the text in
the following ways:

¦	possibly softening the language relating to the characterization of the 2002
McMillan article.

¦	providing a more expanded discussion of the potential of using citizen juries to
generate non-monetary valuation metrics or expressions. Such discussion would
be included in the main body of the text.

¦	including discussion of potential disadvantages of citizen juries compared with
use of referenda and initiatives

The committee then discussed a written comment from Dr. Terry Daniel
regarding the advantages and disadvantages of using citizen juries, compared to other
information gathering methods that might be more representative of a broader population
that was less informed. Some committee members questioned the "importance of getting
opinions from uninformed or less informed people" and asked whether EPA did not have

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a responsibility to educate people about ecological impacts. A committee member noted
that it was easy to discern the differences between stakeholders participating in a
stakeholder negotiation and members of the public participating in a citizen jury (in the
former, self-interest is the driver; in the latter, citizen juries make a decision on behalf of
the public interest), but surveys of uninformed or less-informed individuals are
"somewhere in the middle" and hard to assess. Dr. Thompson noted that this issue was
broader than the citizen jury method write-up. He stated that he would consult with Dr.
Segerson and the DFO about where and how to enhance discussion of these issues and
follow up with Dr. Daniel.

Mediated Modeling (Part 3. Section 5.2. pp. 272-280) -

In the absence of Dr. Robert Costanza, Dr. Thompson asked committee members
to expand on general comments that they submitted in writing or that they believed were
valuable for committee discussion. He also invited additional oral comment.

One member of the committee asked whether Section 5.2 properly belonged
under "Deliberative Processes for Eliciting Values" because, as described, the method did
not elicit values and instead "imported" valuation information from other sources. He
suggested that the section had merit for the report but belonged elsewhere, perhaps in the
section on modeling ecological systems. He noted that the section did not add much
content on eliciting valuation information from groups beyond information presented in
section 5.1, "Valuation by Decision Aiding/Structured Decision Making." Another
member agreed that the write-up did not focus on eliciting valuation information. Yet
other members questioned the proposed relocation of the text, since, in their view,
mediated modeling seemed to be broader than ecological modeling.

A member also noted that the scope of mediated modeling seemed broader than
value elicitation and seemed to go beyond valuation to a "more complete process of
decision-making." Members noted similarities to section 5.1 "Valuation by Decision
Aiding/Structured Decision Making" and asked if the mediated modeling discussion
might be combined with section 5.1. They also asked if both section 5.1 and 5.2 methods
might be combined under some new heading, such as "Interactive Processes for
Stakeholder Involvement." Dr. Segerson suggested that if both methods were being
included in the report because their purpose was to elicit values, both write-ups could
benefit from additional detail and information about value elicitation. If the methods,
instead, were intended for another purpose involving valuation, it would be helpful for
that purpose to be more clearly expressed and the report could categorize the methods
more appropriately. The DFO noted that the committee also was considering the
placement of text on "Ecological Benefit Indicators" and "Focus Groups," additional
methods that involve group processes.

The committee then discussed the use of the term "value" on page 272, line 29.
Members asked that the parenthetical expression "(means toward an end)" be dropped
because it is not consistent with usage adopted by the committee for the report.

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Dr. Thompson concluded the discussion by noting that he would discuss follow-
up related to the mediated modeling section with Dr. Segerson and the DFO and
communicate a proposed plan to Dr. Costanza.

Introduction to Methods Using Cost as a Proxy for Values (Part 2. Section 4.6. pp. 79-80)
Replacement Costs (Part 3. Section 7.1. p. 302-303)

Tradeable Permit Prices (Part 3. Section 7.2. p. 303-304)

Dr. Polasky summarized substantive comments received on the topic of "cost as a
proxy for value." He noted that the general discussion on pp. 79-80 could be edited so
that it would not suggest a general criticism of Habitat Equivalency Analysis (HEA), but
instead focus more narrowly on analytical issues associated with cost as a proxy for
value. It could discuss a concern about using HEA costs as value, but not categorically
criticize HEA.

Concerning the "Replacement Cost" write-up, Dr. Polasky agreed to expand the
section because there is much interest in replacement cost approaches, they are widely
used, and they are "easy to abuse." A member suggested that in addition to the specific
criteria that need to be met for replacement costs, the section should also discuss the
difference between the economist's understanding of "substitution at the margin" and the
ecologist's understanding of "replacement in nature." Substitution at the margin is not
the same as replacement of function.

Several committee members also suggested that the section include examples.
The committee discussed the merits of including the Catskill example and whether the
criteria for replacement costs were met. The group decided that the example was so
prominent that it was appropriate to mention it explicitly to discuss the merits of using
replacement costs and the challenge of meeting the criteria. References to more detailed
discussion of the example could be inserted in a footnote.

Dr. Polasky noted that the Replacement Cost section could be expanded and will
illustrate that replacement cost approaches are different from inferring value from a
marketable permit.

Conclusion of Teleconference

Dr. Thompson thanked members for their participation and committed to
identifying action items with the goal of revising text discussed during the teleconference
before the May 1-2 meeting. A member also noted that EPA's Office of Research and
Development was sponsoring a "Valuation of Ecological Benefits Progress Review
Meeting" on April 23 - 24, 2007. The DFO volunteered to circulate an announcement
about the workshop to committee members

The teleconference was adjourned at 2:15 p.m.

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Respectfully Submitted:

/s/

Angela Nugent
Designated Federal Official

Certified as True:

/s/

Dr. Barton H. (Buzz) Thompson, Jr.
Chair

SAB Committee on Valuing the
Protection of Ecological Systems
and Services

List of Attachments

Attachment A: Roster of the SAB C-VPESS
Attachment B: Federal Register Notice
Attachment C: Meeting Agenda

Attachment D: Attendees from the Public Who Requested or Were Provided Call-in
Information

Attachment E: Comments from Members and Consultants of the SAB Committee on
Valuing the Protection of Ecological Systems and Services (C-VPESS) on the 3/09/07
draft report for discussion at the 3/20/07 C-VPESS public teleconference call

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Attachment A:

Roster of the U.S. Environmental Protection Agency
Science Advisory Board
Committee on Valuing the Protection of Ecological Systems and

Services

CHAIR

Dr. Barton H. (Buzz) Thompson, Jr., Robert E. Paradise Professor of Natural
Resources Law, Stanford Law School, and Director, Woods Institute for the
Environment, Stanford University, Stanford, CA

VICE-CHAIR

Dr. Kathleen Segerson, Professor, Department of Economics, University of
Connecticut, Storrs, CT

MEMBERS

Dr. William Louis Ascher, Donald C. McKenna Professor of Government and
Economics, Claremont McKenna College, Claremont, CA

Dr. Gregory Biddinger, Coordinator, Natural Land Management Programs, Toxicology
and Environmental Sciences, ExxonMobil Biomedical Sciences, Inc, Houston, TX

Dr. Ann Bostrom, Associate Professor, School of Public Policy, Georgia Institute of
Technology, Atlanta, GA

Dr. James Boyd, Senior Fellow, Director, Energy & Natural Resources Division,
Resources for the Future, Washington, DC

Dr. Robert Costanza, Professor/Director, Gund Institute for Ecological Economics,
School of Natural Resources, University of Vermont, Burlington, VT

Dr. Terry Daniel, Professor of Psychology and Natural Resources, Department of
Psychology, Environmental Perception Laboratory, University of Arizona, Tucson, AZ

Dr. A. Myrick Freeman, William D. Shipman Professor of Economics Emeritus,
Department of Economics, Bowdoin College, Brunswick, ME

Dr. Dennis Grossman, Principal Associate - Biodiversity Protection and Conservation
Planning, Environmental and Natural Resources Department, Abt Associates Inc.,
Bethesda, MD

Dr. Geoffrey Heal, Paul Garrett Professor of Public Policy and Business Responsibility,

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Columbia Business School, Columbia University, New York, NY

Dr. Robert Huggett, Consultant and Professor Emeritus, College of William and Mary,
Williamsburg, VA

Dr. Douglas E. MacLean, Professor, Department of Philosophy, University of North
Carolina, Chapel Hill, NC

Dr. Harold Mooney, Paul S. Achilles Professor of Environmental Biology, Department
of Biological Sciences, Stanford University, Stanford, CA

Dr. Louis F. Pitelka, Professor, Appalachian Laboratory, University of Maryland Center
for Environmental Science, Frostburg, MD

Dr. Stephen Polasky, Fesler-Lampert Professor of Ecological/Environmental
Economics, Department of Applied Economics, University of Minnesota, St. Paul, MN

Dr. Paul G. Risser, Chair, University Research Cabinet, University of Oklahoma,
Norman, OK

Dr. Holmes Rolston, University Distinguished Professor, Department of Philosophy,
Colorado State University, Fort Collins, CO

Dr. Joan Roughgarden, Professor, Biological Sciences and Evolutionary Biology,
Stanford University, Stanford, CA

Dr. Mark Sagoff, Senior Research Scholar, Institute for Philosophy and Public Policy,
School of Public Affairs, University of Maryland, College Park, MD

Dr. Paul Slovic, Professor, Department of Psychology, Decision Research, Eugene, OR

Dr. V. Kerry Smith, W.P. Carey Professor of Economics, Department of Economics,
W.P. Carey School of Business, Arizona State University, Tempe, AZ

CONSULTANTS TO Till COMMITTEE

Dr. Joseph Arvai, Professor, Environmental Science and Policy Program, and
Department of Community, Agriculture, Resource and Recreation Studies (CARRS),
Michigan State University, East Lansing, MI

Dr. Allyson Holbrook, Assistant Professor of Public Administration and Psychology,
Survey Research Laboratory, University of Illinois at Chicago, Chicago, IL

Dr. Jon Krosnick, Frederic O. Glover Professor in Humanities and Social Sciences,
Professor of Communication, Director, Methods of Analysis Program in the Social
Sciences, Associate Director, Institute for Research in the Social Sciences, Stanford

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University, Palo Alto, CA

SCIENCE ADVISORY BOARD STAFF

Dr. Angela Nugent, Designated Federal Officer, 1200 Pennsylvania Avenue, NW
1400F, Washington, DC, Phone: 202-343-9981, Fax: 202-233-0643,

(nugent. angel a@epa. gov)


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Attachment B: Federal Register Notice

Science Advisory Board Staff Office; Notification of Six
Public Teleconferences of the Science Advisory Board
Committee on Valuing the Protection of Ecological
Systems and Services

[Federal Register: December 28, 2006 (Volume 71, Number 249)]

[Notices]

[Page 78202-78203]

ENVIRONMENTAL PROTECTION AGENCY
[FRL-8262-8]

Science Advisory Board Staff Office; Notification of Six Public
Teleconferences of the Science Advisory Board Committee on Valuing the
Protection of Ecological Systems and Services

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

SUMMARY: The EPA Science Advisory Board (SAB) Staff Office announces
six public teleconferences of the SAB Committee on Valuing the
Protection of Ecological Systems and Services (C-VPESS) to discuss
components of a draft report related to valuing the protection of
ecological systems and services.

DATES: The SAB will conduct six public teleconferences on February 5,
2007, February 13, 2007, February 27, 2007, March 6, 2007, March 20,
2007, and March 27, 2007. Each teleconference will begin at 12:30 p.m.
and end at 2:30 p.m. (eastern standard time).

LOCATION: Telephone conference call only.

FOR FURTHER INFORMATION CONTACT: Any member of the public wishing to
obtain general information concerning this public teleconference may
contact Dr. Angela Nugent, Designated Federal Officer (DFO), via
telephone at: (202) 343-9981 or e-mail at: nugent.angelaBepa.gov.
General information concerning the EPA Science Advisory Board can be
found on the EPA Web site at: http://www.epa.gov/sab.

SUPPLEMENTARY INFORMATION: The SAB was established by 42 U.S.C. 4365 to
provide independent scientific and technical advice, consultation, and
recommendations to the EPA Administrator on the technical basis for
Agency positions and regulations. The SAB is a Federal advisory
committee chartered under the Federal Advisory Committee Act (FACA), as
amended, 5 U.S.C., App. The SAB will comply with the provisions of FACA
and all appropriate SAB Staff Office procedural policies.

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Background: Background on the SAB C-VPESS and its charge was
provided in 68 Fed. Reg. 11082 (March 7, 2003) . The purpose of the
teleconference is for the SAB C-VPESS to discuss components of a draft
advisory report calling for expanded and integrated approach for
valuing the protection of ecological systems and services. The
Committee will discuss draft assessments of methods for ecological
valuation and application of those methods for valuing the protection
of ecological systems and services.

These activities are related to the Committee's overall charge: to
assess Agency needs and the state of the art and science of valuing
protection of ecological systems and services and to identify key areas
for improving knowledge, methodologies, practice, and research.

Availability of Meeting Materials: Agendas and materials in support
of the teleconferences will be placed on the SAB Web Site at:
http://www.epa.gov/sab/ in advance of each teleconference.

Procedures for Providing Public Input: Interested members of the
public may submit relevant written or oral information for the SAB to
consider during the public teleconference and/or meeting.

Oral Statements: In general, individuals or groups requesting an

oral

presentation at a public SAB teleconference will be limited to three
minutes per speaker, with no more than a total of one-half hour for all
speakers. To be placed on the public speaker list, interested parties
should contact Dr. Angela Nugent, DFO, in writing (preferably via e-
mail) 5 business days in advance of each teleconference.

Written Statements: Written statements should be received in the
SAB Staff Office 5 business days in advance of each teleconference
above so that the information may be made available to the SAB for
their consideration prior to each teleconference. Written statements
should be supplied to the DFO in the following formats: One hard copy
with original signature, and one electronic copy via e-mail (acceptable
file format: Adobe Acrobat PDF, WordPerfect, MS Word, MS PowerPoint, or
Rich Text files in IBM-PC/Windows 98/2000/XP format).

Accessibility: For information on access or services for
individuals with disabilities, please contact Dr. Angela Nugent at
(202) 343-9981 or nugent.angela0epa.gov. To request accommodation of a
disability, please contact Dr. Nugent preferably at least ten days
prior to the teleconference, to give EPA as much time as possible to
process your request.

Dated: December 22, 2006.

Anthony Maciorowski,

Associate Director for Science, EPA Science Advisory Board Staff
Office.

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Attachment C: Meeting Agenda

EPA Science Advisory Board
Committee on Valuing the Protection of Ecological Systems and Services (C-VPESS)

Public Teleconference
March 20, 2007,12:30 p.m. - 2:30 p.m. Eastern Time

Purpose: The purpose of the teleconference is to discuss draft text developed by
committee members for a draft report related to valuing the protection of
ecological systems and services.

12:30- 12:35 Opening of Teleconference

Dr. Angela Nugent, Designated
Federal Officer

12:35 - 12:40 Review of Agenda

Dr. Buzz Thompson, Chair
Dr. Kathleen Segerson, Vice-
Chair

12:40 - 12:50 Public Comments

12:50 -1:15 Introduction to Methods Addressing Deliberative

Processes that Involve Values (Part 2, Section 4.4; pp.
76-78) and Mediated Modeling (Part 3, Section 5.2, pp.
272-280) - Summary of written comments and response

-	Committee Discussion

-	Next Steps

1:15- 1:40 Introduction to Methods Addressing Public and Group
Expressions of Value (Part 2, Section 4.5, pp. 78-79)
and Referenda and Initiatives (Part 3, Section 6.2, pp.
282-292) Summary of written comments and response

-	Committee Discussion

-	Next Steps

TBA

Dr. Robert Costanza

Committee

Dr. Buzz Thompson

Dr. Buzz Thompson and Stephen
Polasky

Committee

Dr. Buzz Thompson

1:40 - 2:05 Citizen Value Juries (Part 3, Section 6.3, pp. 293-301)
Summary of written comments and response

-	Committee Discussion

-	Next Steps

2:05 - 2:25 Introduction to Methods Using Cost as a Proxy for
Values (Part 2, Section 4.6, pp. 79-80)

Replacement Costs (Part 3, Section 7.1, p. 302-303)
Tradeable Permit Prices (Part 3, Section 7.2, p. 303-304)

-	Summary of written comments and response

-	Committee Discussion

-	Next Steps

Dr. Buzz Thompson

Committee

Dr. Buzz Thompson

Dr. Stephen Polasky

Committee

Dr. Buzz Thompson

2:25 - 2:30 Summary and Next Steps

Dr. Buzz Thompson

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Attachment D: Attendees from the Public Who Requested or Were Provided Call-

in Information

Mary Jane Calvey
Pat Casano
Nancy Beck
Jim Christman
Patrick Frey
Pieter Booth
Paul Hendley
Traci Iott

Darrell Osterhoudt
Jean Public
Matt Shipman
Wayne Munns

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Attachment E: Compilation of Comments from Members and Consultants

of the C-VPESS

Comments from Members and Consultants of the SAB Committee on Valuing the Protection
of Ecological Systems and Services (C-VPESS) on the 3/09/07 draft report for discussion at
the 3/20/07 C-VPESS public teleconference call
Comments received as of 7:00 a.m. 3/20/07

Comments Received

A. Comments on Introduction to Methods Addressing Deliberative Processes that

Involve Values (Part 2, Section 4.4; pp. 76-78)	 15

Comments from Bill Ascher	15

Comments from Ann Bostrom	15

Comments from Rick Freeman	16

B.	Comments on Valuation by Decision Aiding/Structured Decision Making (Part 3,
Section 5.1, pp. 262-271)	 16

Comments from Bill Ascher	16

C.	Comments on Mediated Modeling (Part 3, Section 5.2, pp. 272-280)	 16

Comments from Bill Ascher	16

Comments from Ann Bostrom	17

Comments from Terry Daniel	17

Comments from Rick Freeman	18

Comments from Lou Pitelka	19

D.	Comments on Introduction to Methods Addressing Public and Group Expressions
of Value (Part 2, Section 4.5, pp. 78-79) and Introduction to Part 3 Section 6	19

Comments from Bill Ascher	19

Comments from Lou Pitelka	19

E.	Comments on Referenda and Initiatives (Part 3, Section 6.2, pp. 282-292)	 19

Comments from Ann Bostrom	19

Comments from Bill Ascher	20

Comments from Terry Daniel	20

Comments from Rick Freeman	20

Comments from Lou Pitelka	21

F.	Citizen Value Juries (Part 3, Section 6.3, pp. 293-301)-	21

Comments from Bill Ascher	22

Comments from Ann Bostrom	22

Comments from Terry Daniel	22

Comments from Lou Pitelka	23

G..	Introduction to Methods Using Cost as a Proxy for Values (Part 2, Section 4.6, pp.
79-80), Replacement Costs (Part 3, Section 7.1, p. 302-303), Tradeable Permit Prices
(Part 3, Section 7.2, p. 303-304)	23

Comments from Bill Ascher	23

Comments from Rick Freeman	23

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A. Comments on Introduction to Methods Addressing Deliberative Processes that
Involve Values (Part 2, Section 4.4; pp. 76-78)

Comments from Bill Ascher

Part 2, Section 4.4

Much of this is word-for-word with the section 6.1 beginning on p. 270

P. 77 line 14 "The final output is either the selection or identification of a preferred
management option (if the context is decision making) or a judgment about the current
state of the system relative to a previous state (if the context is evaluative)." The second half
of this sentence seems too narrow. It seems to exclude the straightforward valuation question
of a current or future ecosystem component. It is taken from just one of the steps needed for
elicitation of values (p. 253); it is not the "final output."

p. 77 line 29 "Most importantly, the model and the results derived from it have
stakeholder buy-in and reflect group consensus" It may be the intention to promote buy-in and
consensus, but it is overly optimistic to presume that buy-in and consensus will inevitably
result. Sometimes they do not.

Comments from Ann Bostrom

Page 77 line 5 - "that values are given and thatconsider defining "given" ? or adding a
clarifying statement (context-independent?)

Page 77 lines 8-12: edit as follows: In either case, decision aiding can help at any step of a
decision process, including problem structuring (e.g., Beers et al, 2006; Shaw et al, 2003),
specification of values and objectives (Keeney, 1992), and the creation, evaluation and
selection of attributes and alternatives (e.g., Gregory and Keeney, 1994; Keeney & Gregory
2005).

Page 77 last sentence and top of page 78: Can this be clarified? In what sense must values be
"explicitly incorporated into the model" in order to support the exploration of tradeoffs.

Maybe 'the model must be value-focused in order to support analysis of tradeoffs' - or
something like that?

References:

Beers PJ, Boshuizen HP A, Kirschner PA, & Guselaers, WH. Common ground, complex
problems and decision making. Group Decision and Negotiation, 15 (6): 529-556 NOV 2006

Gregory R, Keeney Rl. Creating Policy Alternatives Using Stakeholder Values
Management Science 40 (8): 1035-1048 Aug 1994

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Keeney, RL. Value-Focused Thinking. Harvard University Press, Cambridge Mass, 1992.

Keeney RL, Gregory RS. Selecting attributes to measure the achievement of objectives
Operations Research 53 (1): 1-11 JAN-FEB 2005.

Shaw D, Ackermann F, Eden C, Approaches to sharing knowledge in group problem
structuring. Journal of the Operational Research Society, 54 (9): 936-948 SEP 2003

Comments from Rick Freeman

p. 77, lines 3-6: the same premise is also in contrast to the social-psychological methods.

p. 77, lines 20-21: What is the reference, Gregory and Wellman? Or the other Gregory at al.
2001 listed on p. 379?

p. 77, lines 30-31 and the next page. I share KS's concern. See my remarks on mediated
modeling below. Valuation is distinct from reaching consensus on the model.

p. 79, lines 7-10: Cite Ashenfelter and Greenstone here, too?

B.	Comments on Valuation by Decision Aiding/Structured Decision Making (Part 3,
Section 5.1, pp. 262-271)

Comments from Bill Ascher

Part 3, Section 5.1 (Intro)

p. 259, line 5: "There may be significant institutional barriers to the full adoption at EPA of
this method (the method is "overly" transparent and frequently highlights objectives and/or
alternatives that may not be favored by managers)." This is gratuitously provocative and
insulting to EPA managers, in that it implies that they would wish to suppress valid
information about values and preferences.

C.	Comments on Mediated Modeling (Part 3, Section 5.2, pp. 272-280)

Comments from Bill Ascher
Part 3, Section 5.2

p. 261. The initial section on "brief description of method" has a lot on the rationales of the
method and requirements—out of place in the section describing the method.

p. 261, line 29. "value (means toward an end)" is confusing. Is this defining value as means
toward an end?

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p. 262, line 10. The statement that "Participants in the mediated modeling process gain deep
understanding of the process and products" needs to be caveated that this occurs "if the process
is done well." Sometimes mediated modeling falls prey to the black box problem.

p. 262, lines 15-23. Repetition of the lines above.

p. 263. more detail than is necessary (or typical of the rest of the report) about the case.

p. 263. line 25. What are "open space techniques?

p. 266. line 3: repetition of prior paragraph.

Comments from Ann Bostrom
Pages 272-280:

Page 272 line 29 - clarify by comparison with how the term value is used elsewhere in the
report?

Page 272 - lines 15-23 duplicate the previous lines.

Consensus processes may not be optimal compared to majority rules or other processes (e.g.,
starting with a Delphi process) in terms of bringing to light important variability, uncertainties,
or disagreements in beliefs. Consider referencing related group decision research? Add some
discussion of this to the section on treatment of uncertainty (p 277 lines 8-12)?

Also, the related question of who (which stakeholders and how many) should be invited to
participate in mediated modeling, or, analogously, what criteria should be used to select
participants (and how many) needs to be addressed explicitly. Perhaps a reference could be
made here to relevant discussion of that issue elsewhere in the report?

Page 277 lines 3-7 duplicate the previous paragraph

Comments from Terry Daniel
Mediated modeling

Following are all repeated segments.

P 262

15	The method is inherently dynamic - that is

16	what it does best

17	• The results can be aggregated to get a single benefits number as needed.

18	• Participants in the mediated modeling process gain deep understanding of the process

19	and products. Those who have not participated can easily view and understand the

20	results if they invest the effort. Usually the results can (with some additional effort)

21	be made accessible to a broad audience.

22	• Since the method explicitly discusses and incorporates subjective or "framing" issues,

23	it is at least open and transparent to users.

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266

3	The most serious obstacle seems to be the fact that this method is very different from

4	the top-down approach most frequently used in government. It requires that consensus

5	building be put at the center of the process, which can be very scary for institutions

6	accustomed to controlling the outcome of decision processes. The final outcome of this

7	process cannot be predetermined.

Comments from Rick Freeman

1.	On the plus side, this write up makes a strong case for the value of mediated modeling: (i)
to induce interdisciplinary collaboration among scientists developing models of systems being
studied; (ii) for using the technique to involve stakeholders in helping to determined what are
the important endpoints to concentrate attention on; and (iii) for gaining agreement on a
common understanding of how the system works.

2.	But, there is very little on valuation here, at least that way we have characterized the
problem of valuation in our deliberations.

-	If the same participants who discuss the model structure also discuss and reach agreement on
the values to be used in assessing alternative strategies, how does this differ from deliberative
valuation more generally?

-	In the fynbos case (Higgins, et al., 1997), where did the values listed in Table 1 come from?
Was there a deliberative process? Was this a form of benefits transfer? The unit value of
wildlife harvest might have been simply a market price.

-	Valuation is a process that is separate from the modeling of the underlying system. And in the
context of the Patuxent River (as I recall it) and fynbos cases, the values appear to have come
from outside of the modeling process, not as outputs of this process.

-	In the Iron and Steel Industry and Louisiana wetlands cases in Costanza and Ruth (1998),
there don't appear to be any values being used at all.

3.	Therefore, I propose that this material be recast to emphasize the scientific modeling as
described in point #1 above and moved to Part 2, Section 3: "Prediction of Ecological Effects."
This is where I think that the real contribution of this material lies. The discussion of valuation
here is so cursory that I don't think it adds anything to what is in the materials in the other parts
of the section on Deliberative Processes for Valuation.

4.	Here are some more specific comments:

A. pp. 272, line 8:1 don't understand what is meant by "consensus ... between science and
policy." I understand "consensus on the science" underlying a model; and I understand
"consensus about policy" - objectives, means, etc. But I think that there is an important
distinction between the realms of science and policy.

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B.	pp. 272, lines 18-19: Similarly, what is the "gulf separating the science and policy
communities"? And why do we need to bridge this gulf?

C.	pp. 272, line 9: There is no explanation of how the aggregation to get a single benefits
number is done by mediated modeling.

D.	pp. 274, lines 23, 25: If the terms "atelier approach," and "open space technique" are
retained, I think that they need to be explained.

Comments from Lou Pitelka
Part 3, Section 5.2.

1.	There are several places where text is repeated, including pg. 273, lines 15-23, and page
277, lines 3-7.

2.	A couple of terms need explanation. First, on page 274, line 1, most readers will not
know what a plant kingdom is or how many of them there are. Thus, the fact that this is a tiny
area yet is recognized as a distinct plant kingdom will be meaningless. So, either leave out this
statement or explain better. Also, on page 275, line 10, will readers know what STELLA is?

3.	Page 274, lines 12-14 are redundant.

D.	Comments on Introduction to Methods Addressing Public and Group Expressions
of Value (Part 2, Section 4.5, pp. 78-79) and Introduction to Part 3 Section 6

Comments from Bill Ascher

p. 78 line 20 "Referenda" (the plural) rather than "referendum;" also pluralize "initiatives",
pp. 78-79 This summary is beautifully written.

p. 79, line 25. "Nevertheless" rather than "nonetheless." This may seem picky, but
"nonetheless" implies equivalent worth, whereas this is not the point; "nevertheless" implies
that it happens anyway.

Comments from Lou Pitelka

Page 281. This page should be deleted as the material is include in pages 76-78.

E.	Comments on Referenda and Initiatives (Part 3, Section 6.2, pp. 282-292)

Comments from Ann Bostrom
Comments on pages 282-292:

General comment: The sensitivity of voting to the formulation/wording of referenda, is
discussed little in this section. Add discussion/refs?

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P 286 line 19 is incomplete.

P 291 rewrite sentence on lines 13-14 (delete "who" ?).

Page 292 - add a reference for the Resources for the Future efforts?

e.g.

H. Spencer Banzhaf. Wallace E. Oates, James N. Sanchirico, R. David Simpson, Randy Walsh
"Voting for Conservation: What is the American Electorate Revealing?" Resources, Winter
2006 (160), Resources for the Future, Washington DC. http://www.rff.org/rff/Documents/RFF-
Resources-160-votingconservation-REV 1 .pdf

Page 292 line 11 - change comma to period? Or complete the sentence?

Delete line 7 on page 293.

Comments from Bill Ascher

p. 276, line 25. "stated" rather than "sated"

p. 276, line 30. "county" rather than "country"

Comments from Terry Daniel

Referenda and initiatives

This section is clearly and convincingly written. The emphasis on public-regardedness/civic
values is very appropriate to the multiple method approach to value assessment advocated by
C-VPESS. However, there may be a bit more emphasis than merited on getting the method to
yield defensible monetary values (e.g., medians, means, and the issues of close versus strongly
decided cases). It seems paradoxical, for example, that referenda decided by very large
margins should be problematic viz. determining the value to the represented society of the
issue/action addressed. Such cases would seem to provide rather strong input to public policy
and decision making regarding publicly held values.

The noted cross validations between individual-based w-t-p measures and social w-t-p derived
from referenda should be expanded to include cross comparisons with survey and other
individual and group assessment methods, with or without dollar measures. With regard to
surveys that accompany or follow referenda, the emphasis on validating dollar value estimates
should be extended more evenly to include measures of what people thought that they had
voted for (beliefs and assumptions) and their motives for voting the way they did (e.g., to send
political rather than economic signals to policy makers).

The section seems to end in mid sentence.

Comments from Rick Freeman

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1.	pp. 282, line 1: As long as the method is described as applying to
referenda, I am reasonably comfortable with it. But this section starts
out including "other formal public decisions." If this term is meant to
include legislative bodies including ,e.g., county commissioners, city
councils, and so forth, then I get very uncomfortable.

2.	One of my first notes while reading this is that to estimate WTP, we
have to assume that individuals have some idea of the financial impact
of the referendum on them, if passed. I don't remember ever seeing an
estimate of what that impact would be for any of the many bond referenda
on the ballots in Maine through the years nor have I every tried to
calculate this impact for my household. The point is finally raised in

this writeup on p. 290, lines 3-8.1 think that it should be brought up
a lot earlier. Also, then, we might not spend so much time talking about
WTP estimates in the rest of the section.

3.	Some specific comments:

A.	p. 285, line 6: Is it steps 2 and 4 or steps 3 and 5? (Same question
for p. 297, line 17.)

B.	p. 286, line 10: what is "intrinsic validity"? Is this using
"validity" in the sense of "validity of a measurement"? Perhaps some
other term would be clearer.

C.	p. 287, line 2: The reference to a decision in Portland (OR? Or ME?)

Has no context. What is this about? See a similar reference to efforts

at Resources for the Future on p. 292.

D.	p. 289, line 27:1 can't find Lowi, 1964 in the reference list.

Comments from Lou Pitelka

Part 3, Section 6.2.

1.	The word "ecosystems" is written throughout this section as "eco-systems" and needs
to be corrected.

2.	I am not sure why the material in Text boxes 14, 15, and 16 is in text boxes. In other
sections this sort of detail is included in the main text. This is the first time I have seen text
boxes.

3.	Page 286, lines 16-19. This should be written as a complete sentence, following on the
previous paragraph. It ends with a comma suggesting that some material is missing.

4.	Page 292, lines 1-3. Something is missing from this sentence. It does not make sense.

F. Citizen Value Juries (Part 3, Section 6.3, pp. 293-301)

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Comments from Bill Ascher

This is a particularly well-written, clear section.

p. 287, lines 6-13. It is fair enough to point to the advantages of citizen juries over
initiative/referendum results, but then it would be fairer still to point out that citizen juries do
not have standing as actual, official decisions by communities.

Would it be worthwhile to say something about drawing valuation inferences from actual jury
awards in cases involving environmental damage?

Comments from Ann Bostrom

Comments on pages 293-301:

P 299 lines 1-5- Macmillian et al (2002) state that "MS estimates were consistently lower than
equivalent WTP measures for the interviewed sample: overall, they were 3.5 times lower than
the interview estimates." Further the specific implementation of the market stall approach
included a diary process that I don't think is common in other citizen jury studies. MacMillian
et al. do not appear to have carried out any systematic analysis of group effects. Thus this top
paragraph on page 299 appears perhaps overly optimistic.

Comments from Terry Daniel

Citizen juries

The apologies for the "stated versus revealed" nature of citizen jury value assessments may be
somewhat overstated. Basically all decision making has a "hypothetical character" in that the
consequences of any given decision are not fully known (or even well-projected) at the time of
the choice/action, nor are all (or more strictly any) of the relevant options and conditions
known with certainty. Revealed preferences may be the most appropriate "gold standard" for
value assessments, but it is important to recognize that "actual behavior" can rarely be
construed as an unconstrained revelation of "truly held" values (one need only consider the
known effects of advertising, shelf placement in grocery stores and music and floor coverings
in department stores on "actual purchases").

Similar to the referendum section, there may be too much concern with how citizen juries can
be made to yield dollar valuations, whether as aggregates of individual valuations or as
expressions of social/civic values. Indeed one area of research that would parallel research at
the individual level of decision making/valuation would be comparisons of jury outcomes for
equivalent issues when the "verdict" is required to be expressed in dollar versus other value
metrics. As noted, one of the most important areas for application of citizen juries (and many
other methods covered in this report) is when dollar valuations can not be supported or when
monetary valuations are likely to be viewed as ethically inappropriate.

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All of the methods reviewed here share worries about how representative the group participants
are to the general public. They also share the fact that the process itself essentially assures that
however carefully selected the participants will not be representative of the general public at
the time of their decision/expression of value. This is at once a strength and a limitation of the
group deliberative methods. For determining "informed values" these may be the best
methods. However, if the target is the values/preferences/judgments of the larger, uninformed
public, these methods will generally miss the mark. Public policy/decision makers would be
well advised to consider both informed and uninformed public values, and to recognize the
strengths and limitations of both.

Comments from Lou Pitelka

Part 3, Section 6.3.

1.	Page 293, line 30. Does the government pay or the public pay? It seems as though the
public pays the government to accomplish whatever.

2.	Pages 295-297. While the material in Text Box 18 seems appropriate for a text box, the
material in boxes 19 and 20 seems as though it should be part of the regular text.

G. Introduction to Methods Using Cost as a Proxy for Values (Part 2, Section 4.6, pp. 79-80),
Replacement Costs (Part 3, Section 7.1, p. 302-303), Tradeable Permit Prices (Part 3, Section 7.2,
p. 303-304)

Comments from Bill Ascher

pp. 79-80: The denunciation of using cost as a proxy for benefit and therefore value is fair
enough, and well explained. However, to avoid throwing two babies away with the bath water,
it would be useful to 1) state at least one circumstance in which costs are voluntarily incurred,
and perhaps mention that governments make these decisions "voluntarily" all the time; and b)
state that HEA does use benefits-based valuation in estimating how much restoration is needed
(otherwise, this section may be construed as a general denunciation of HEA).

Sections 71. & 7.2: The treatment of cost as proxy is better balanced here; I had no problems
with it. Same with 7.2

Comments from Rick Freeman

Replacement Costs:

Good treatment.

At p. 302, line 13: If the Catskill example is used we will probably
need to get into Mark Sagoff s critique, which as I understand it seems
to have some merit. But then Geoff will probably want to weigh in,
although I am not aware that he has ever responded to Mark on this issue.

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