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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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Publisher Info
Paper provided by Göteborg University, 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, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: choice experiments; mixed logit; stated preference; water quality;

Find related papers by JEL classification:
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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References listed on IDEAS
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  1. 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, vol. 23(2), pages 167-186, October. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. Freeman, A. Myrick, III, 1995. "The Benefits Of Water Quality Improvement For Marine Recreation: A Review Of The Empirical Evidence," Marine Resource Economics, Marine Resources Foundation, vol. 10(4). [Downloadable!]
  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, vol. 11(3), pages 413-428, April. [Downloadable!] (restricted)
  5. Nunes, Paulo A. L. D. & van den Bergh, Jeroen C. J. M., 2001. "Economic valuation of biodiversity: sense or nonsense?," Ecological Economics, Elsevier, vol. 39(2), pages 203-222, November. [Downloadable!] (restricted)
  6. Nick Hanley & Begona Alvarez-Farizo, . "Valuing the Benefits of Coastal Water Quality Improvements using Contingent and Real Behaviour," Working Papers 2002_9, Department of Economics, University of Glasgow, revised Sep 2002.
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  7. Morgan, Cynthia & Owens, Nicole, 2001. "Benefits of water quality policies: the Chesapeake Bay," Ecological Economics, Elsevier, vol. 39(2), pages 271-284, November. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. Kling, Catherine L., 1991. "Estimating the precision of welfare measures," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 244-259, November. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
  12. 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. [Downloadable!] (restricted)
  13. Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Blackwell Publishing, vol. 15(3), pages 435-62, July. [Downloadable!] (restricted)
  14. Alpizar, Francisco & Carlsson, Fredrik & Martinsson, Peter, 2001. "Using Choice Experiments for Non-Market Valuation," Working Papers in Economics 52, Göteborg University, Department of Economics. [Downloadable!]
  15. 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. [Downloadable!] (restricted)
  16. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
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