Incorporating Uncertainty and Cero Values into the Valuation of Protected Areas and Species
AbstractUnder the Spanish conservation law, compensation is envisaged for the damage associated with all actions that reduce the quantity or quality of protected areas and species. This paper provides a tool to evaluate the monetary equivalent of this damage. We conduct a contingent valuation exercise to estimate the existence value related to protected areas and species in Aragon. This estimate is then reconsidered including the possibility of zero bids and also the possibility of uncertain preferences for non-familiar goods. Considering these two effects, mean values are reduced significantly giving support to previous recommendations of dividing by two contingent valuation estimates from dichotomous choice question formats.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24745.
Date of creation: 2005
Date of revision:
natural heritage; contingent valuation; Spike model; uncertainty; Land Economics/Use; B23; C24; C42; C52; D62; Q26;
Find related papers by JEL classification:
- B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
- C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models
- C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
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