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Contingent valuation of natural resources: a case study for Sicily

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Author Info
Pasquale Lucio Scandizzo (University of Tor Vergata, Dept. SEFEMEQ, Faculty of Economics)
Marco Ventura (ISAE - Institute for Studies and Economic Analyses)

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Abstract

In this paper we use the Contingent Evaluation methodology to develop an economic evaluation of natural resources in a protected marine area of Sicily. Assuming a non-Normal distribution for the ML estimation, the paper shows that a variant of the stochastic utility model appears to capture well the dependence of the willingness to pay (WTP) on the socioeconomic characteristics of a sample of stakeholders of the natural resources in question. The estimates obtained are consistent and robust across different policy measures, no embedding or sequencing effects emerge and option values appear also to have been elicited in a consistent way. Once these values are added to the basic WTP, the income elasticities estimated fall in the range reported by other studies.

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File URL: http://www.isae.it/Working_Papers/WP_91_2008_Scandizzo_Ventura.pdf
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Publisher Info
Paper provided by ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY) in its series ISAE Working Papers with number 91.

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Length: 20 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:isa:wpaper:91

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Related research
Keywords: environment; option value; contingent valuation; legal constraints.;

Find related papers by JEL classification:
Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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This page was last updated on 2009-11-13.


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