Advanced Search
MyIDEAS: Login

Valuing quality changes in Caribbean coastal waters for heterogeneous beach visitors

Contents:

Author Info

  • Beharry-Borg, Nesha
  • Scarpa, Riccardo

Abstract

The quality of the coastal waters is now a major environmental issue in Tobago due to its role in supporting the economically important tourism sector and for safeguarding public health. In this paper we report the results of two choice experiments designed to estimate willingness to pay (WTP) for an improvement in coastal water quality for two groups of beach recreationists: snorkellers and nonsnorkellers. Responses from 284 respondents were analyzed and included both locals and tourists to the island who participated in beach recreation. Latent class and mixed multinomial logit models were used in the analysis of the responses to explain the presence of any unobserved taste heterogeneity. An additional advantage of using these models was the ability to determine individual-specific WTP estimates for each attribute. The results indicate that individual specific-means of WTP estimates vary significantly between snorkellers and nonsnorkellers. The results from the analysis using the latent class model identified two subgroups with distinct preferences with the snorkeller group. Unobserved taste heterogeneity was better represented for the nonsnorkellers with a mixed multinomial logit model. This study not only addresses the lack of valuation estimates on this island but also demonstrates the importance of using estimation methods that account for individual-specific differences in WTP estimates. The inclusion of individual preferences is especially important in the context of a small-island developing country where there is a need to prioritise policy recommendations due to limited financial resources and conflicting objectives for natural resource management.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6VDY-4Y7PCMY-1/2/294ce9bebec204f25ae72d18371ee63d
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 69 (2010)
Issue (Month): 5 (March)
Pages: 1124-1139

as in new window
Handle: RePEc:eee:ecolec:v:69:y:2010:i:5:p:1124-1139

Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Choice experiment Coastal waters Latent class model Mixed multinomial logit model Beach recreation;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Stephane Hess & John Rose, 2009. "Should Reference Alternatives in Pivot Design SC Surveys be Treated Differently?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(3), pages 297-317, March.
  2. Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," University of California Transportation Center, Working Papers qt1j6814b3, University of California Transportation Center.
  3. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
  4. Joan Walker & Jieping Li, 2007. "Latent lifestyle preferences and household location decisions," Journal of Geographical Systems, Springer, vol. 9(1), pages 77-101, April.
  5. Kling, Catherine L. & Bockstael, Nancy & Michael, W., 1999. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers 12334, Iowa State University, Department of Economics.
  6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
  7. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
  8. Leida Mercado & James Lassoie, 2002. "Assessing Tourists' Preferences for Recreational and Environmental Management Programs Central to the Sustainable Development of a Tourism Area in the Dominican Republic," Environment, Development and Sustainability, Springer, vol. 4(3), pages 253-278, September.
  9. Milon, J. Walter & Scrogin, David, 2006. "Latent preferences and valuation of wetland ecosystem restoration," Ecological Economics, Elsevier, vol. 56(2), pages 162-175, February.
  10. Riccardo Scarpa & Mara Thiene, 2005. "Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences," Land Economics, University of Wisconsin Press, vol. 81(3).
  11. Stephen Hynes & Nick Hanley & Riccardo Scarpa, 2008. "Effects on Welfare Measures of Alternative Means of Accounting for Preference Heterogeneity in Recreational Demand Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1011-1027.
  12. Kenneth E. McConnell, 1977. "Congestion and Willingness to Pay: A Study of Beach Use," Land Economics, University of Wisconsin Press, vol. 53(2), pages 185-195.
  13. Brown, Katrina & Adger, W. Neil & Tompkins, Emma & Bacon, Peter & Shim, David & Young, Kathy, 2001. "Trade-off analysis for marine protected area management," Ecological Economics, Elsevier, vol. 37(3), pages 417-434, June.
  14. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
  15. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
  16. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
  17. Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294.
  18. Eric Ruto & Guy Garrod & Riccardo Scarpa, 2007. "Valuing Animal Genetic Resources: A Choice Modeling Application to Indigenous Cattle in Kenya," Working Papers in Economics 07/05, University of Waikato, Department of Economics.
  19. George Parsons & Steven Thur, 2008. "Valuing Changes in the Quality of Coral Reef Ecosystems: A Stated Preference Study of SCUBA Diving in the Bonaire National Marine Park," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 40(4), pages 593-608, August.
  20. Naidoo, Robin & Adamowicz, Wiktor L., 2005. "Biodiversity and nature-based tourism at forest reserves in Uganda," Environment and Development Economics, Cambridge University Press, vol. 10(02), pages 159-178, May.
  21. Greg Lindsey & Ann Holmes, 2002. "Tourist Support for Marine Protection in Nha Trang, Viet Nam," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 45(4), pages 461-480.
  22. Scarpa, R. & Thiene, M. & Train, K., 2008. "Appendix to Utility in WTP space: a tool to address confounding random scale effects in destination choice to the Alps," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(4), November.
  23. Mauricio Sillano & Juan de Dios Ort�zar, 2005. "Willingness-to-pay estimation with mixed logit models: some new evidence," Environment and Planning A, Pion Ltd, London, vol. 37(3), pages 525-550, March.
  24. Bell, Frederick W. & Leeworthy, Vernon R., 1990. "Recreational demand by tourists for saltwater beach days," Journal of Environmental Economics and Management, Elsevier, vol. 18(3), pages 189-205, May.
  25. Bill Provencher & Kenneth A. Baerenklau & Richard C. Bishop, 2002. "A Finite Mixture Logit Model of Recreational Angling with Serially Correlated Random Utility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1066-1075.
  26. Riccardo Scarpa & Kenneth G. Willis & Melinda Acutt, 2007. "Valuing externalities from water supply: Status quo, choice complexity and individual random effects in panel kernel logit analysis of choice experiments," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 50(4), pages 449-466.
  27. Brander, Luke M. & Van Beukering, Pieter & Cesar, Herman S.J., 2007. "The recreational value of coral reefs: A meta-analysis," Ecological Economics, Elsevier, vol. 63(1), pages 209-218, June.
  28. Joseph A. Herriges & Daniel J. Phaneuf, 2002. "Inducing Patterns of Correlation and Substitution in Repeated Logit Models of Recreation Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1076-1090.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Maria Cunha-e-Sá & Lívia Madureira & Luis Nunes & Vladimir Otrachshenko, 2012. "Protesting and Justifying: A Latent Class Model for Contingent Valuation with Attitudinal Data," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 52(4), pages 531-548, August.
  2. Yoo, James & Simonit, Silvio & Connors, John P. & Kinzig, Ann P. & Perrings, Charles, 2014. "The valuation of off-site ecosystem service flows: Deforestation, erosion and the amenity value of lakes in Prescott, Arizona," Ecological Economics, Elsevier, vol. 97(C), pages 74-83.
  3. Penn, Jerrod & Hu, Wuyang & Cox, Linda J. & Kozloff, Lara, 2012. "Beach Quality and Recreational Values: A Pictorialized Stated Preference Analysis of Residents and Tourists," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119813, Southern Agricultural Economics Association.
  4. Garcίa-Yi, Jaqueline, 2010. "Heterogeneous Motivations of Household - Level Coca Growing Areas: The Case of an Indigenous Community in Peru," Proceedings of the German Development Economics Conference, Hannover 2010 23, Verein für Socialpolitik, Research Committee Development Economics.
  5. Stephane Hess & Nesha Beharry-Borg, 2012. "Accounting for Latent Attitudes in Willingness-to-Pay Studies: The Case of Coastal Water Quality Improvements in Tobago," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 52(1), pages 109-131, May.
  6. Paudel, Krishna P. & Caffey, Rex H. & Devkota, Nirmala, 2011. "An Evaluation of Factors Affecting the Choice of Coastal Recreational Activities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(02), May.
  7. Sonja S. Teelucksingh & Paulo A.L.D. Nunes, 2010. "Biodiversity Valuation in Developing Countries: A Focus on Small Island Developing States (SIDS)," Working Papers 2010.111, Fondazione Eni Enrico Mattei.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:69:y:2010:i:5:p:1124-1139. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.