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Real-payment choice experiments: Valuing forested wetlands and spatial attributes within a landscape context

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  • Newell, Laurie W.
  • Swallow, Stephen K.
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    Abstract

    We consider the choice experiment approach to valuation, due to its focus on tradeoffs between alternatives. Our study is not hypothetical, but implements a real-payment choice experiment (CE) for a multi-attribute good. We use two real wetland parcels to create over 18 descriptions of parcels for conservation under a 10-year development-rights contract. Our payment protocol mitigates incentives to understate willingness to pay through a provision point with a rebate of excess funds. Real choice questions captured significant values for spatial attributes of wetland conservation. Average respondents positively valued 73-acre parcels surrounded by woodland, but required 100acres for parcels surrounded by residential or farm land, and accepted a 19-acre smaller parcel in exchange for full public access.

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    Bibliographic Info

    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 92 (2013)
    Issue (Month): C ()
    Pages: 37-47

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    Handle: RePEc:eee:ecolec:v:92:y:2013:i:c:p:37-47

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    Web page: http://www.elsevier.com/locate/ecolecon

    Related research

    Keywords: Choice experiments; Provision point; Proportional rebate; Field experiment; Wetland valuation; Real money; Revealed preference;

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    Cited by:
    1. Kragt, Marit E., 2013. "Evidence-based Research in Environmental Choice Experiments," Working Papers 153335, University of Western Australia, School of Agricultural and Resource Economics.
    2. Bauer, Dana M. & Johnston, Robert J., 2013. "Foreword: The Economics of Rural and Agricultural Ecosystem Services: Purism versus Practicality," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), April.
    3. Swallow, Stephen K., 2013. "Demand-side Value for Ecosystem Services and Implications for Innovative Markets: Experimental Perspectives on the Possibility of Private Markets for Public Goods," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), April.

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