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Using Choice Experiments to Value the Natura 2000 Nature Conservation Programs in Finland

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  • Chuan-zhong Li
  • Jari Kuuluvainen
  • Eija Pouta
  • Mika Rekola
  • Olli Tahvonen

Abstract

This paper is concerned with the preferences of the Finnish households for a controversial nature conservation program – the European Union's Natura 2000 Network. Since the program was mainly based on biological considerations, it met strong public opinions from different interest groups in Finland. Using the choice experimental method, we attempt to estimate the values that the Finnish households would place on different preservation levels. It is found that the mean willingness to accept for a decrease in the nature preservation area is much greater than the mean willingness to pay for an increase by the same amount. Also, the marginal willingness to pay becomes zero after an initial increase in the natural preservation area, which is consistent with our earlier findings in a binary choice valuation study. Policy implications of these results are also discussed in relation to different decision criteria. Copyright Kluwer Academic Publishers 2004

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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): 29 (2004)
Issue (Month): 3 (November)
Pages: 361-374

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Handle: RePEc:kap:enreec:v:29:y:2004:i:3:p:361-374

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

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Keywords: choice experiment; nature conservation; willingness to pay;

References

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  1. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  2. Hanemann, W Michael, 1991. "Willingness to Pay and Willingness to Accept: How Much Can They Differ?," American Economic Review, American Economic Association, vol. 81(3), pages 635-47, June.
  3. Shogren, Jason F. & Seung Y. Shin & Dermot J. Hayes & James B. Kliebenstein, 1994. "Resolving Differences in Willingness to Pay and Willingness to Accept," American Economic Review, American Economic Association, vol. 84(1), pages 255-70, March.
  4. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
  5. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
  6. Dubourg, W R & Jones-Lee, M W & Loomes, Graham, 1994. "Imprecise Preferences and the WTP-WTA Disparity," Journal of Risk and Uncertainty, Springer, vol. 9(2), pages 115-33, October.
  7. Bengt Kristr�m, 1997. "Spike Models in Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1013-1023.
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Citations

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Cited by:
  1. Casey, James F. & Kahn, James R. & Rivas, Alexandre A.F., 2008. "Willingness to accept compensation for the environmental risks of oil transport on the Amazon: A choice modeling experiment," Ecological Economics, Elsevier, vol. 67(4), pages 552-559, November.
  2. Birol, Ekin & Das, Sukanya, 2010. "Valuing the environment in developing countries: Modeling the impact of distrust in public authorities' ability to deliver public services on the citizens' willingness to pay for improved environmenta," IFPRI discussion papers 1043, International Food Policy Research Institute (IFPRI).
  3. Ekin Birol & Phoebe Koundouri & Yiannis Kountouris, . "Applications of the Choice Experiment Method in Europe: A Review," DEOS Working Papers 0803, Athens University of Economics and Business.
  4. Małgorzata Buszko-Briggs & Mikołaj Czajkowski & Nick Hanley, 2008. "Valuing Changes in Forest Biodiversity," Working Papers 2008-02, Faculty of Economic Sciences, University of Warsaw.
  5. Rosenkranz, Lydia & Seintsch, Björn & Wippel, Bernd & Dieter, Matthias, 2014. "Income losses due to the implementation of the Habitats Directive in forests — Conclusions from a case study in Germany," Forest Policy and Economics, Elsevier, vol. 38(C), pages 207-218.
  6. Dan Marsh & Lena Mkwara & Riccardo Scarpa, 2011. "Do Respondents’ Perceptions of the Status Quo Matter in Non-Market Valuation with Choice Experiments? An Application to New Zealand Freshwater Streams," Sustainability, MDPI, Open Access Journal, vol. 3(9), pages 1593-1615, September.
  7. Hoyos, David & Mariel, Petr & Pascual, Unai & Etxano, Iker, 2012. "Valuing a Natura 2000 network site to inform land use options using a discrete choice experiment: An illustration from the Basque Country," Journal of Forest Economics, Elsevier, vol. 18(4), pages 329-344.
  8. Lindhjem, Henrik, 2006. "20 years of stated preference valuation of non-timber benefits from Fennoscandian forests: A meta-analysis," MPRA Paper 11467, University Library of Munich, Germany.
  9. Mariel Chladkova, Petr & Etxano Gandariasbeitia, Iker & Hoyos Ramos, David & Garmendia Oleaga, Eneko & Pascual, Unai, 2011. "The management of Natura 2000 Network sites: a discrete choice experiment approach," BILTOKI 2011-02, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
  10. 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.
  11. Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2010. "Preferences for site and environmental functions when selecting forthcoming national parks," Ecological Economics, Elsevier, vol. 69(7), pages 1532-1544, May.
  12. Loomis, John B. & Le, Hung Trong & Gonzales-Caban, Armando, 2005. "Testing transferability of willingness to pay for forest fire prevention among three states of California, Florida and Montana," Journal of Forest Economics, Elsevier, vol. 11(3), pages 125-140, December.

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