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Uncertainty in Individuals' Preferences for Non-commodity Outputs Provided by Rural Development Programs (RDPs): A Contingent Valuation Approach

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  • Dominguez-Torreiro, Marcos
  • Solino, Mario

Abstract

Rural development programs (RDPs) are currently envisaged as a means to foster the provision of a broad range of non-commodity outputs emanating from multifunctional rural environments. This paper presents a Contingent Valuation survey that analyses individuals’ perceptions of and willingness to pay (WTP) for the implementation of a RDP in Cantabria, Spain. Uncertainty in individuals’ preferences is explicitly acknowledged and introduced into our analytical framework. For that purpose, a comparison is made between the open-ended (OE) and the multiple bounded uncertainty (MBU) elicitation formats. According to our behavioural model estimates, the expectation of a positive welfare change for both rural and urban dwellers constitutes a sound argument in favour of regional rural development policies.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114437.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114437

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Keywords: rural development policy; non-commodity outputs; contingent valuation; elicitation formats; uncertainty; Agricultural and Food Policy; Q0; Q18; Q51; R0;

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