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Choice modelling: assessing the environmental values of water supply options

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  • Blamey, Russell K.
  • Gordon, Jenny
  • Chapman, Ross
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    Abstract

    Three criticisms of the contingent valuation method (CVM) are considered in this article. One technique that would appear to answer such criticisms is choice modelling (CM). CM permits value estimates for different goods sharing a common set of attributes to be pieced together using the results of a single multinomial (conditional) logit model. The CM approach to environmental value assessment is illustrated in the context of a consumer‐based assessment of future water supply options in the Australian Capital Territory. CM is found to provide a flexible and cost‐effective method for estimating use and passive use values, particularly when several alternative proposals need to be considered.

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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 43 (1999)
    Issue (Month): 3 (September)
    Pages:

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    Handle: RePEc:ags:aareaj:117163

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    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    Keywords: Resource /Energy Economics and Policy;

    References

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    5. Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January.
    6. R. K. Blamey & J. W. Bennett & M. D. Morrison, 1999. "Yea-Saying in Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 75(1), pages 126-141.
    7. Flores, Nicholas E. & Carson, Richard T., 1995. "The Relationship Between the Income Elasticities of Demand and Willingness to Pay," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148795, Australian Agricultural and Resource Economics Society.
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    Citations

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    Cited by:
    1. Fiona Gibson & Michael Burton, 2014. "Salt or Sludge? Exploring Preferences for Potable Water Sources," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 57(3), pages 453-476, March.
    2. Mallawaarachchi, Thilak & Quiggin, John C., 2001. "Modelling socially optimal land allocations for sugar cane growing in North Queensland: a linked mathematical programming and choice modelling study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), September.
    3. Windle, Jill & Rolfe, John, 2003. "Diversification in the Sugar Industry: The Grower's Perspective in Central Queensland, Australia," 14th Congress, Perth, Western Australia, August 10-15, 2003 24360, International Farm Management Association.
    4. Windle, Jill & Rolfe, John, 2005. "Diversification choices in agriculture: a Choice Modelling case study of sugarcane growers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), March.
    5. Anand, P.B., 2001. "Consumer Preferences for Water Supply? An Application of Choice Models to Urban India," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    6. Roy Brouwer, 2009. "Multi-Attribute Choice Modeling of Australia’s Rivers and Wetlands: A Meta-Analysis of Ten Years of Research," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-05, CSIRO Sustainable Ecosystems.
    7. Julie Poirier, 2012. "How to Deal with Protest Bids and Preference for the Status Quo in Choice Experiments ?," Working Papers 2012-02, Centre de Recherche en Economie et Statistique.
    8. Marit E. Kragt & Jeff Bennett, 2008. "Developing a Questionnaire for Valuing Changes in Natural Resource Management in the George Catchment, Tasmania," Environmental Economics Research Hub Research Reports 0808, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    9. R.K. Blamey & J.W. Bennett & J.J. Louviere & M.D. Morrison & J.C. Rolfe, 2002. "Attribute Causality in Environmental Choice Modelling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(2), pages 167-186, October.
    10. Blamey, R. K. & Bennett, J. W. & Louviere, J. J. & Morrison, M. D. & Rolfe, J., 2000. "A test of policy labels in environmental choice modelling studies," Ecological Economics, Elsevier, vol. 32(2), pages 269-286, February.
    11. Bennett, Jeffrey W., 2005. "Australasian environmental economics: contributions, conflicts and ‘cop-outs’," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), September.
    12. Tran Huu Tuan & Henrik Lindhjem, 2008. "Meta-analysis of nature conservation values in Asia & Oceania: Data heterogeneity and benefit transfer issues," EEPSEA Research Report rr2008072, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jul 2008.
    13. Helen Scarborough & Jeff Bennett & Rodney Carr, 2004. "Using Choice Modeling to Investigate Equity Preferences," Economics Series 2004_03, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
    14. Julia Martin-Ortega & Giacomo Giannoccaro & Julio Berbel, 2011. "Environmental and Resource Costs Under Water Scarcity Conditions: An Estimation in the Context of the European Water Framework Directive," Water Resources Management, Springer, vol. 25(6), pages 1615-1633, April.
    15. Harun Rasid & Wolfgang Haider, 2003. "Floodplain Residents' Preferences for Water Level Management Options in Flood Control Projects in Bangladesh," Natural Hazards, International Society for the Prevention and Mitigation of Natural Hazards, vol. 28(1), pages 101-129, January.
    16. Crase, Lin & Dollery, Brian & Lockwood, Michael, 2002. "Transaction Costs and Welfare in the Permanent Water Market in NSW," 2002 Conference (46th), February 13-15, 2002, Canberra 125076, Australian Agricultural and Resource Economics Society.
    17. Juan Walter Tudela Mamani, 2010. "Experimentos de elección en la priorización de políticas de gestión en Áreas Naturales Protegidas," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
    18. Dupont, Diane P., 2011. "Reclaimed Wastewater and the WTP to avoid Summer Water Restrictions: Incorporation Endogenous Free-riding Beliefs," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108778, Agricultural Economics Society.

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