A choice modelling approach to investigate biases in individual and aggregated benefit estimates due to omission of distance
AbstractThis paper describes a Choice Modelling experiment set up to investigate the relationship between distance and willingness to pay for environmental quality changes. The issue is important for aggregation and transfer of benefits. So far the problem has been analysed though the use of Contingent Valuation-type of experiments, producing mixed results. The experiment allows testing distance effects on parameters of environmental attributes that imply different trade-offs between use and non-use values. The distance covariate enters the estimated utility function in a flexible form to accommodate for several possible relationships. The sampling procedure is designed to provide a “geographically balanced” sample. Welfare analysis shows that disregarding distance produces under-estimation of individual and aggregated benefits and losses, seriously hindering the reliability of cost-benefit analyses.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200412.
Date of creation: 2004
Date of revision:
choice modelling techniques; distance; aggregation;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pate, Jennifer & Loomis, John, 1997. "The effect of distance on willingness to pay values: a case study of wetlands and salmon in California," Ecological Economics, Elsevier, vol. 20(3), pages 199-207, March.
- Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, November.
- Keith, John E. & Fawson, Christopher & Johnson, Van, 1996. "Preservation or use A contingent valuation study of wilderness designation in Utah," Ecological Economics, Elsevier, vol. 18(3), pages 207-214, September.
- Richard Hofler & John List, 2004.
"Valuation on the frontier: Calibrating actual and hypothetical statements of value,"
Framed Field Experiments
00159, The Field Experiments Website.
- Richard A. Hofler & John A. List, 2004. "Valuation on the Frontier: Calibrating Actual and Hypothetical Statements of Value," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 213-221.
- Boxall, Peter C. & Adamowicz, Wiktor L. & Swait, Joffre & Williams, Michael & Louviere, Jordan, 1996. "A comparison of stated preference methods for environmental valuation," Ecological Economics, Elsevier, vol. 18(3), pages 243-253, September.
- D M Hanink & K White, 1999. "Distance effects in the demand for wildland recreational services: the case of national parks in the United States," Environment and Planning A, Pion Ltd, London, vol. 31(3), pages 477-492, March.
- Amigues, Jean-Pierre & Boulatoff (Broadhead), Catherine & Desaigues, Brigitte & Gauthier, Caroline & Keith, John E., 2002. "The benefits and costs of riparian analysis habitat preservation: a willingness to accept/willingness to pay contingent valuation approach," Ecological Economics, Elsevier, vol. 43(1), pages 17-31, November.
- Mary F. Evans & Nicholas E. Flores & Kevin J. Boyle, 2003. "Multiple-Bounded Uncertainty Choice Data as Probabilistic Intentions," Land Economics, University of Wisconsin Press, vol. 79(4), pages 549-560.
- Hadker, Nandini & Sharma, Sudhir & David, Ashish & Muraleedharan, T. R., 1997. "Willingness-to-pay for Borivli National Park: evidence from a Contingent Valuation," Ecological Economics, Elsevier, vol. 21(2), pages 105-122, May.
- Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
- Swait, Joffre & Adamowicz, Wiktor & Bueren, Martin van, 2004. "Choice and temporal welfare impacts: incorporating history into discrete choice models," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 94-116, January.
- Ian Bateman & Ian Langford, 1997. "Non-users' Willingness to Pay for a National Park: An Application and Critique of the Contingent Valuation Method," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 571-582.
- 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.
- Ian Bateman & Ian Langford & Naohito Nishikawa & Iain Lake, 2000. "The Axford Debate Revisited: A Case Study Illustrating Different Approaches to the Aggregation of Benefits Data," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(2), pages 291-302.
- Ronald J. Sutherland & Richard G. Walsh, 1985. "Effect of Distance on the Preservation Value of Water Quality," Land Economics, University of Wisconsin Press, vol. 64(3), pages 281-291.
- Espey, Molly & Owusu-Edusei, Kwame, 2001. "Neighborhood Parks And Residential Property Values In Greenville, South Carolina," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(03), December.
- GB. Concu, 2004. "Effects of distance on non-use values," Working Paper CRENoS 200411, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- O. Carboni & G. Medda, 2007. "Government Size and the Composition of Public Spending in a Neoclassical Growth Model," Working Paper CRENoS 200701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- G. Marletto, 2006. "La politica dei trasporti come politica per l’innovazione: spunti da un approccio evolutivo," Working Paper CRENoS 200605, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonello Pau).
If references are entirely missing, you can add them using this form.