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Attribute Causality in Environmental Choice Modelling

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  • R.K. Blamey
  • J.W. Bennett

    ()

  • J.J. Louviere
  • M.D. Morrison
  • J.C. Rolfe

Abstract

When selecting attributes in environmentalChoice Modelling studies, preference should begiven to those attributes that aredemand-relevant, policy-relevant, andmeasurable. The use of these criteria willoften result in a short list of environmentalattributes of which some are causally related. The inclusion of attributes that have a``cause-effect'' relationship may stimulate somerespondents to seek to understand the causalrelations among attributes in order to assigngreater meaning to the alternatives, andpotentially, simplify the decision makingprocess. This may have implications for theweights they assign to each of the attributeswhen identifying the preferred alternatives,and subsequently for the implicit prices and/orwelfare estimates. A test of the impact ofincluding an attribute that causesimpacts on ecosystem health as well as anattribute relating to ecosystem health effectson parameter estimates, implicitprices and welfare estimates is conducted. Twoquestionnaires are developed, one with the`causal' attribute included and one without. Acomparison of results indicates that when the`causal' attribute is included in the vector ofchoice attributes, the implicit value of asingle endangered species falls by 34 per centwhilst no significant difference is detected inthe parameter estimates. Importantly, however,estimates of compensating surplus for a givenpolicy package do not differsignificantly across the two treatments. Thisimplies that to the extent that the inclusionof a `causal' attribute reduces the implicitprices for one or more of the `effect'attributes, the associated loss in utility isapproximately offset by the utility nowassociated with the new attribute. Copyright Kluwer Academic Publishers 2002

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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 23 (2002)
Issue (Month): 2 (October)
Pages: 167-186

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Handle: RePEc:kap:enreec:v:23:y:2002:i:2:p:167-186

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: attributes; choice modelling; valuation; vegetation;

References

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Citations

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Cited by:
  1. Miller, Sini & Tait, Peter & Saunders, Caroline, 2013. "Scarcity Of Canterbury’s Water: Its Multiple, Conflicting Uses," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160269, New Zealand Agricultural and Resource Economics Society.
  2. Cleland, Jonelle & Rogers, Abbie A., 2010. "Putting the Spotlight on Attribute Definition: a knowledge base approach," Research Reports 107578, Australian National University, Environmental Economics Research Hub.
  3. Silvia Ferrini & Riccardo Scarpa, 2005. "Experimental Designs for Environmental Valuation with Choice-Experiments: A Monte-Carlo Investigation," Working Papers in Economics 05/08, University of Waikato, Department of Economics.
  4. Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2007. "Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments," Working Papers in Economics 07/18, University of Waikato, Department of Economics.
  5. Eggert, Håkan & Olsson, Björn, 2004. "Heterogeneous preferences for marine amenities: A choice experiment applied to water quality," Working Papers in Economics 126, University of Gothenburg, Department of Economics.
  6. Schlapfer, Felix, 2006. "Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis," Ecological Economics, Elsevier, vol. 57(3), pages 415-429, May.
  7. Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2006. "Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates," Working Papers 2006.128, Fondazione Eni Enrico Mattei.
  8. Mark Morrison & Jeff Bennett, 2004. "Valuing New South Wales rivers for use in benefit transfer," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(4), pages 591-611, December.
  9. Johnston, Robert J. & Schultz, Eric T. & Segerson, Kathleen & Besedin, Elena Y. & Ramachandran, Mahesh, 2013. "Stated Preferences for Intermediate versus Final Ecosystem Services: Disentangling Willingness to Pay for Omitted Outcomes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), April.
  10. Jonelle Cleland & Abbie McCartney, 2010. "Putting the Spotlight on Attribute Definition: Divergence Between Experts and the Public," Environmental Economics Research Hub Research Reports 1077, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
  11. De Valck, Jeremy & Vlaeminck, Pieter & Liekens, Inge & Aertsens, Joris & Chen, Wendy & Vranken, Liesbet, 2012. "The sources of preference heterogeneity for nature restoration scenarios," Working Papers 146522, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
  12. Phillips, Yvonne, 2011. "When the Tide is High: Estimating the Welfare Impact of Coastal Erosion Management," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115414, New Zealand Agricultural and Resource Economics Society.
  13. Stefan Hajkowicz (Ed) & Mike Young (Ed), 2002. "Value of Returns to Land and Water and Costs of Degradation Vol 1 of 2," Natural Resource Management Economics 02_002, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.

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