IDEAS home Printed from https://ideas.repec.org/a/now/jirere/101.00000097.html
   My bibliography  Save this article

Spatial Heterogeneity in Stated Preference Valuation: Status, Challenges and Road Ahead

Author

Listed:
  • De Valck, Jeremy
  • Rolfe, John

Abstract

This paper reviews the progress made over the past few years in evaluating and controlling for spatial heterogeneity in stated preference valuation, focussing on applications to environmental valuation. Spatial heterogeneity can strongly impact value estimates, so failure to account for it can compromise their validity and reliability. Incorporating spatial factors into valuation studies not only helps to control for some potential biases, but also produces more precise evaluation of amenities that have mixed use and non-use values. For these reasons and considering the ever-growing need for non-market valuation studies, spatial heterogeneity deserves more attention in the stated preference valuation literature. In this review we discuss the current state-of-knowledge and identify some of the main issues that have been raised in the literature in relation to spatial heterogeneity in stated preference valuation, including distance-decay, substitution, embedding effects and scale factors. We present several techniques that have been used so far, mostly originating from spatial econometrics and spatial statistics, to control for spatial heterogeneity. Some of the ongoing challenges that require further attention are also highlighted. We conclude by suggesting potential directions for future research in light of recent progress made in related disciplines and the evolution of modern technologies.

Suggested Citation

  • De Valck, Jeremy & Rolfe, John, 2018. "Spatial Heterogeneity in Stated Preference Valuation: Status, Challenges and Road Ahead," International Review of Environmental and Resource Economics, now publishers, vol. 11(4), pages 355-422, August.
    • Handle: RePEc:now:jirere:101.00000097
    DOI: 10.1561/101.00000097
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/101.00000097
    Download Restriction: no
    File URL: https://libkey.io/10.1561/101.00000097?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

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


    Cited by:

    1. De Valck, Jeremy & Beames, Alistair & Liekens, Inge & Bettens, Maarten & Seuntjens, Piet & Broekx, Steven, 2019. "Valuing urban ecosystem services in sustainable brownfield redevelopment," Ecosystem Services, Elsevier, vol. 35(C), pages 139-149.
    2. Yao, Richard T. & Scarpa, Riccardo & Harrison, Duncan R. & Burns, Rhys J., 2019. "Does the economic benefit of biodiversity enhancement exceed the cost of conservation in planted forests?," Ecosystem Services, Elsevier, vol. 38(C), pages 1-1.
    3. Klaus Glenk & Robert J. Johnston & Jürgen Meyerhoff & Julian Sagebiel, 2020. "Spatial Dimensions of Stated Preference Valuation in Environmental and Resource Economics: Methods, Trends and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 215-242, February.
    4. Valeria M. Toledo‐Gallegos & Jed Long & Danny Campbell & Tobias Börger & Nick Hanley, 2021. "Spatial clustering of willingness to pay for ecosystem services," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 673-697, September.
    5. Hermine Vedogbeton & Robert J. Johnston, 2020. "Commodity Consistent Meta-Analysis of Wetland Values: An Illustration for Coastal Marsh Habitat," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 835-865, April.
    6. Cécile Hérivaux & Philippe Le Coent, 2021. "Introducing Nature into Cities or Preserving Existing Peri-Urban Ecosystems? Analysis of Preferences in a Rapidly Urbanizing Catchment," Sustainability, MDPI, vol. 13(2), pages 1-34, January.
    7. Hynes, Stephen & Armstrong, Claire W. & Xuan, Bui Bich & Ankamah-Yeboah, Isaac & Simpson, Katherine & Tinch, Robert & Ressurreição, Adriana, 2021. "Have environmental preferences and willingness to pay remained stable before and during the global Covid-19 shock?," Ecological Economics, Elsevier, vol. 189(C).
    8. Abbie A. Rogers & Fiona L. Dempster & Jacob I. Hawkins & Robert J. Johnston & Peter C. Boxall & John Rolfe & Marit E. Kragt & Michael P. Burton & David J. Pannell, 2019. "Valuing non-market economic impacts from natural hazards," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 99(2), pages 1131-1161, November.
    9. Tobias Holmsgaard Larsen & Thomas Lundhede & Søren Bøye Olsen & Brian H. Jacobsen, 2021. "Incorporating time lags and uncertainty in cost-benefit analysis of water quality improvements – a case study of Limfjorden, Denmark," IFRO Working Paper 2021/01, University of Copenhagen, Department of Food and Resource Economics.
    10. Suter, Jordan F. & Rouhi Rad, Mani & Manning, Dale T. & Goemans, Chris & Sanderson, Matthew R., 2021. "Depletion, climate, and the incremental value of groundwater," Resource and Energy Economics, Elsevier, vol. 63(C).
    11. Søren B. Olsen & Cathrine U. Jensen & Toke E. Panduro, 2020. "Modelling Strategies for Discontinuous Distance Decay in Willingness to Pay for Ecosystem Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 351-386, February.
    12. Tomas Badura & Silvia Ferrini & Michael Burton & Amy Binner & Ian J. Bateman, 2020. "Using Individualised Choice Maps to Capture the Spatial Dimensions of Value Within Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 297-322, February.
    13. Jeffrey Wielgus & Monica Grasso & Charles Colgan & Jennifer Zhuang & Sarah Siegel & Joseph Conran & Tadesse Wodajo, 2024. "Natural Capital Considerations for an Extension of the US Marine Economy Satellite Account," NBER Chapters, in: Measuring and Accounting for Environmental Public Goods: A National Accounts Perspective, National Bureau of Economic Research, Inc.
    14. Manning, Dale T. & Rad, Mani Rouhi & Suter, Jordan F. & Goemans, Christopher & Xiang, Zaichen & Bailey, Ryan, 2020. "Non-market valuation in integrated assessment modeling: The benefits of water right retirement," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    15. Luisa Fernanda Eusse-Villa & Cristiano Franceschinis & Mara Thiene & Jürgen Meyerhoff & Alex McBratney & Damien Field, 2021. "Attitudes and Preferences towards Soil-Based Ecosystem Services: How Do They Vary across Space?," Sustainability, MDPI, vol. 13(16), pages 1-19, August.

    More about this item

    Keywords

    Environmental; non-market valuation; preference heterogeneity; GIS; spatial statistics; ecosystem services;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:now:jirere:101.00000097. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucy Wiseman (email available below). General contact details of provider: http://www.nowpublishers.com/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.