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Valuing environmental impacts of coastal development projects: a choice modelling application in Spain

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Author Info
David Hoyos Ramos () (Unidad de Economía Ambiental - Instituto de Economía Pública)
Pere Riera Micaló () (Universidad Autónoma de Barcelona)
Javier Fernández Macho () (Departamento de Economía Aplicada III)
Carmen Gallastegui () (Institute for Public Economics. University of the Basque Country)
Dolores García () (Departament d’Economia Aplicada. Universitat de les Illes Balears)
Abstract

Developmental monetary benefits of coast artificialisation projects are rarely confronted with the environmental benefits that its conservation may entail. As a consequence, policy-makers often face decision making processes in which monetary benefits have to be balanced with physical impacts ending up in undervaluation or overvaluation of environmental aspects. Non-market valuation of coastal and marine resources is thus a growing concern in the assessment of cost-benefit analysis of coastal developmental projects. This paper attempts to estimate the effects on people’s utility of the potential environmental impacts of a new seaport in Pasaia, Spain. A choice modelling technique is proposed as a means of estimating marginal impacts for different environmental attributes of mount Jaizkibel, namely its landscape, flora, avifauna and seabed. The results from a multinomial logit model reveal that, on average, individuals would pay 1.39 euros for a one percentage protection of its landscape; 0.87 euros for protecting its flora; 0.68 euros for protecting its avifauna; and 0.63 euros for protecting its seabed.

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Paper provided by Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística) in its series BILTOKI with number 200802.

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Date of creation: 19 May 2008
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Handle: RePEc:ehu:biltok:200802

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Postal: Dpto. de Econometría y Estadística, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Related research
Keywords: choice modelling environmental valuation social welfare

Find related papers by JEL classification:
Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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  1. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April. [Downloadable!] (restricted)
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This page was last updated on 2008-9-30.


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