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Using choice experiments to value river and estuary health in Tasmania with individual preference heterogeneity

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Author Info
Kragt, Marit E.
Bennett, J.W.

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Abstract

Choice experiments (CE – otherwise known as Choice Modelling) have become a widespread approach to environmental valuation in Australia, with many examples assessing the tradeoffs between river catchment management and socio-economic impacts. There is, however, limited information on the values of Australian estuaries. Furthermore, none of the existing valuation studies address catchment management changes in Tasmania. The CE study reported in this paper aims to elicit community preferences for the protection of the rivers and estuary of the George catchment in north-eastern Tasmania. Results from conditional and mixed logit models show that respondents are, on average, willing to pay between $2.47 and $4.46 for a km increase in native riverside vegetation and between $9.35 and $10.97 per species for the protection of rare native plants and animals, ceteris paribus. The results are ambiguous about respondents’ preferences for estuary seagrass area. This study further shows significant differences between logit models when accounting for individual heterogeneity and repeated choices made by individual respondents.

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Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 48058.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:48058

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Keywords: River condition; Estuary condition; Environmental values; Non-market valuation; Choice Experiments; Tasmania;

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  3. Danny Campbell & W. Hutchinson & Riccardo Scarpa, 2008. "Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(3), pages 401-417, November. [Downloadable!] (restricted)
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  4. Danny Campbell, 2007. "Willingness to Pay for Rural Landscape Improvements: Combining Mixed Logit and Random-Effects Models," Journal of Agricultural Economics, Blackwell Publishing, vol. 58(3), pages 467-483, 09. [Downloadable!] (restricted)
  5. Ladenburg, Jacob & Olsen, Søren Bøye, 2008. "Gender-specific starting point bias in choice experiments: Evidence from an empirical study," Journal of Environmental Economics and Management, Elsevier, vol. 56(3), pages 275-285, November. [Downloadable!] (restricted)
  6. 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 and Blackwell Publishing Asia Pty Ltd., vol. 48(4), pages 591-611, December. [Downloadable!] (restricted)
  7. Marit Kragt & Jeff Bennett, 2008. "Designing Choice Experiments to Test for Anchoring and Framing Effects," Environmental Economics Research Hub Research Reports 0810, Environmental Economics Research Hub, Crawford School, Australian National University. [Downloadable!]
  8. Greene, William H. & Hensher, David A. & Rose, John, 2006. "Accounting for heterogeneity in the variance of unobserved effects in mixed logit models," Transportation Research Part B: Methodological, Elsevier, vol. 40(1), pages 75-92, January. [Downloadable!] (restricted)
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  1. Marit E Kragt & Jeff Bennett, 2009. "Integrated Hydro-Economic Modelling: Challenges and Experiences in an Australian Catchment," Environmental Economics Research Hub Research Reports 0915, Environmental Economics Research Hub, Crawford School, Australian National University. [Downloadable!]
  2. Kragt, Marit E. & Bennett, Jeff, 2009. "Integrating economic values and catchment modelling," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47956, Australian Agricultural and Resource Economics Society. [Downloadable!]
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