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Heterogeneous preferences for marine amenities: A choice experiment applied to water quality

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Author Info

  • Eggert, Håkan

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Olsson, Björn

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

The marine environment provides many goods and services dependent upon the quality of coastal waters. In this paper, we represent water quality by three different attributes, fish stock level, bathing water quality, and biodiversity level, and carry out a choice experiment among residents on the Swedish west coast to estimate the economic benefits of improved coastal water quality. We analyze data using the mixed multinomial logit model and explore various distributional assumptions and derive individual-specific parameters. Our results confirm heterogeneous preferences for these attributes and show that respondents have high levels of environmental concern and that substantial values are at stake. The most urgent action according to our findings is firstly to prevent further depletion of marine biodiversity and secondly to improve Swedish cod stocks.

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File URL: http://hdl.handle.net/2077/2834
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 126.

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Length: 36 pages
Date of creation: 18 Feb 2004
Date of revision:
Handle: RePEc:hhs:gunwpe:0126

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: choice experiments; mixed logit; stated preference; water quality;

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References

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  1. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521747387.
  2. 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, Elsevier, vol. 18(3), pages 243-253, September.
  3. Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 15(3), pages 435-62, July.
  4. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
  5. David F. Layton & Gardner Brown, 2000. "Heterogeneous Preferences Regarding Global Climate Change," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 616-624, November.
  6. Nick Hanley & Begona Alvarez-Farizo, . "Valuing the Benefits of Coastal Water Quality Improvements using Contingent and Real Behaviour," Working Papers, Business School - Economics, University of Glasgow 2002_9, Business School - Economics, University of Glasgow, revised Sep 2002.
  7. 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.
  8. Alpizar, Francisco & Carlsson, Fredrik & Martinsson, Peter, 2001. "Using Choice Experiments for Non-Market Valuation," Working Papers in Economics, University of Gothenburg, Department of Economics 52, University of Gothenburg, Department of Economics.
  9. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521788304.
  10. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
  11. R.K. Blamey & J.W. Bennett & J.J. Louviere & M.D. Morrison & J.C. Rolfe, 2002. "Attribute Causality in Environmental Choice Modelling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 23(2), pages 167-186, October.
  12. Sanchirico, James N. & Wilen, James E., 2001. "A Bioeconomic Model of Marine Reserve Creation," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 257-276, November.
  13. Kling, Catherine L., 1991. "Estimating the precision of welfare measures," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 244-259, November.
  14. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
  15. Morgan, Cynthia & Owens, Nicole, 2001. "Benefits of water quality policies: the Chesapeake Bay," Ecological Economics, Elsevier, Elsevier, vol. 39(2), pages 271-284, November.
  16. Nunes, Paulo A. L. D. & van den Bergh, Jeroen C. J. M., 2001. "Economic valuation of biodiversity: sense or nonsense?," Ecological Economics, Elsevier, Elsevier, vol. 39(2), pages 203-222, November.
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Citations

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Cited by:
  1. Ghermandi, Andrea & Nunes, Paulo A.L.D., 2013. "A global map of coastal recreation values: Results from a spatially explicit meta-analysis," Ecological Economics, Elsevier, Elsevier, vol. 86(C), pages 1-15.
  2. Taylor, Tim & Longo, Alberto, 2009. "Valuation of Marine Ecosystem Threshold Effects : Application of Choice Experiments to Value Algal Bloom in the Black Sea Coast of Bulgaria," Department of Economics Working Papers, University of Bath, Department of Economics 15971, University of Bath, Department of Economics.
  3. Christine Bertram, Katrin Rehdanz, 2012. "On the Environmental Effectiveness of the EU Marine Strategy Framework Directive," Kiel Working Papers 1760, Kiel Institute for the World Economy.
  4. Paudel, Krishna P. & Caffey, Rex H. & Devkota, Nirmala, 2011. "An Evaluation of Factors Affecting the Choice of Coastal Recreational Activities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 43(02), May.
  5. Bastone, Chris & Stewart-Carbines, Megan & Kerr, Geoffrey N. & Sharp, Basil M.H. & Meister, Anton D., 2010. "Understanding values associated with stormwater remediation options in marine coastal ecosystems: A case study from Auckland, New Zealand," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia, Australian Agricultural and Resource Economics Society 59578, Australian Agricultural and Resource Economics Society.

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