Advanced Search
MyIDEAS: Login to save this paper or follow this series

Defining environmental attributes as external costs in choice experiments: A discussion

Contents:

Author Info

  • Catalina M. Torres Figuerola

    ()
    (Centre de Recerca Econòmica (UIB · Sa Nostra))

  • Antoni Riera Font

    ()
    (Centre de Recerca Econòmica (UIB · Sa Nostra))

Abstract

After doing a CE literature review to examine the dominant trends around the definition of environmental attributes in terms of their identification as external benefits or costs, their description through qualitative or quantitative attribute level labels, their number of levels and their assumed relationship with utility (i.e. linear vs non-linear), three main conclusions have been drawn. First, definition of environmental attributes as external costs has been uncommon. Second, only one single parameter has been estimated for most of them, in which cases the number of quantitative and qualitative attributes has been similar. Third, nonlinear effects have been mainly depicted through use of qualitative attributes. In this context, this paper examines the policy relevance of defining the environmental attributes as external costs when the assessment of welfare losses induced by potential impacts from polluting activities is the issue. It shows how a cost-based attribute definition allows identifying the environmental attributes through impact pathway analyses not only enabling links between welfare estimates and actual impact magnitudes but also promoting the description of attribute levels in quantitative terms.

Download Info

If 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.
File URL: http://www.cre.uib.es/internet/cre.nsf/pernomcurt/adjunts09/$FILE/dt2009_1.pdf
Our checks indicate that this address may not be valid because: 500 Can't connect to www.cre.uib.es:80 (10060). If this is indeed the case, please notify (Centre de Recerca Econòmica (UIB ·"Sa Nostra"))
Download Restriction: no

Bibliographic Info

Paper provided by Centre de Recerca Econòmica (UIB ·"Sa Nostra") in its series CRE Working Papers (Documents de treball del CRE) with number 2009/1.

as in new window
Length: 29 pages
Date of creation: 2009
Date of revision:
Publication status: Published in 'Documents de Treball CRE', 2009, pages 1-29
Handle: RePEc:pdm:wpaper:2009/1

Contact details of provider:
Web page: http://www.cre.sanostra.es

Related research

Keywords: Choice experiments; environmental attributes; utility specification; external costs; impact pathway; eutrophication;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Michael P. McGonagle & Stephen K. Swallow, 2005. "Open Space and Public Access: A Contingent Choice Application to Coastal Preservation," Land Economics, University of Wisconsin Press, vol. 81(4).
  2. 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.
  3. Alejandro Caparr�s & José L. Oviedo & Pablo Campos, 2008. "Would You Choose Your Preferred Option? Comparing Choice and Recoded Ranking Experiments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 90(3), pages 843-855.
  4. Jette Jacobsen & John Boiesen & Bo Thorsen & Niels Strange, 2008. "What’s in a name? The use of quantitative measures versus ‘Iconised’ species when valuing biodiversity," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 39(3), pages 247-263, March.
  5. Roberts, David C. & Boyer, Tracy A. & Lusk, Jayson L., 2008. "Preferences for environmental quality under uncertainty," Ecological Economics, Elsevier, vol. 66(4), pages 584-593, July.
  6. Sergio Colombo & Nick Hanley, 2008. "How Can We Reduce the Errors from Benefits Transfer? An Investigation Using the Choice Experiment Method," Land Economics, University of Wisconsin Press, vol. 84(1), pages 128-147.
  7. Robert J. Johnston & Joshua M. Duke, 2007. "Willingness to Pay for Agricultural Land Preservation and Policy Process Attributes: Does the Method Matter?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 89(4), pages 1098-1115.
  8. Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January.
  9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 74, pages 132.
  10. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, Economic Issues, vol. 8(1), pages 83-110, March.
  11. Sandström, Mikael, 1996. "Recreational Benefits from Improved Water Quality: A Random Utility Model of Swedish Seaside Recreation," Working Paper Series in Economics and Finance 121, Stockholm School of Economics.
  12. Colombo, Sergio & Calatrava-Requena, Javier & Hanley, Nick, 2006. "Analysing the social benefits of soil conservation measures using stated preference methods," Ecological Economics, Elsevier, vol. 58(4), pages 850-861, July.
  13. Jin, Jianjun & Wang, Zhishi & Ran, Shenghong, 2006. "Comparison of contingent valuation and choice experiment in solid waste management programs in Macao," Ecological Economics, Elsevier, vol. 57(3), pages 430-441, May.
  14. Muradian, Roldan, 2001. "Ecological thresholds: a survey," Ecological Economics, Elsevier, vol. 38(1), pages 7-24, July.
  15. Christie, Mike & Hanley, Nick & Warren, John & Murphy, Kevin & Wright, Robert & Hyde, Tony, 2006. "Valuing the diversity of biodiversity," Ecological Economics, Elsevier, vol. 58(2), pages 304-317, June.
  16. Carol Mansfield & Daniel J. Phaneuf & F. Reed Johnson & Jui-Chen Yang & Robert Beach, 2008. "Preferences for Public Lands Management under Competing Uses: The Case of Yellowstone National Park," Land Economics, University of Wisconsin Press, vol. 84(2), pages 282-305.
  17. Othman, Jamal & Bennett, Jeff & Blamey, Russell, 2004. "Environmental values and resource management options: a choice modelling experience in Malaysia," Environment and Development Economics, Cambridge University Press, vol. 9(06), pages 803-824, December.
  18. 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.
  19. Nick Hanley & Douglas MacMillan & Robert E. Wright & Craig Bullock & Ian Simpson & Dave Parsisson & Bob Crabtree, 1998. "Contingent Valuation Versus Choice Experiments: Estimating the Benefits of Environmentally Sensitive Areas in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 1-15.
  20. Carlsson, Fredrik & Frykblom, Peter & Liljenstolpe, Carolina, 2003. "Valuing wetland attributes: an application of choice experiments," Ecological Economics, Elsevier, vol. 47(1), pages 95-103, November.
  21. Alvarez-Farizo, Begona & Hanley, Nick & Barberan, Ramon & Lazaro, Angelina, 2007. "Choice modeling at the "market stall": Individual versus collective interest in environmental valuation," Ecological Economics, Elsevier, vol. 60(4), pages 743-751, February.
  22. 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.
  23. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-95, September.
  24. Rolfe, John & Bennett, Jeffrey W. & Louviere, Jordan, 2002. "Stated values and reminders of substitute goods: Testing for framing effects with choice modelling," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 46(1), March.
  25. Moran, Dominic & McVittie, Alistair & Allcroft, David J. & Elston, David A., 2007. "Quantifying public preferences for agri-environmental policy in Scotland: A comparison of methods," Ecological Economics, Elsevier, vol. 63(1), pages 42-53, June.
  26. Limburg, Karin E. & O'Neill, Robert V. & Costanza, Robert & Farber, Stephen, 2002. "Complex systems and valuation," Ecological Economics, Elsevier, vol. 41(3), pages 409-420, June.
  27. Rolfe, John & Bennett, Jeff, 2009. "The impact of offering two versus three alternatives in choice modelling experiments," Ecological Economics, Elsevier, vol. 68(4), pages 1140-1148, February.
  28. Nick Hanley & Robert Wright & Gary Koop, 2002. "Modelling Recreation Demand Using Choice Experiments: Climbing in Scotland," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 22(3), pages 449-466, July.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pdm:wpaper:2009/1. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Centre de Recerca Econòmica (UIB ·"Sa Nostra")).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.