Accounting for Negative, Zero and Positive Willingness to Pay for Landscape Change in a National Park
AbstractIn contingent valuation, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay to being non-negative. In this paper, we investigate the impact of allowing for negative, zero and positive preferences for prospective changes in woodland cover in two UK national parks, the Lake District and the Trossachs. An extended spike model is used to accomplish this. The policy implications of not allowing for negative values in terms of aggregate benefits are also investigated, by comparing the extended spike model with a simple spike making use of only zero and positive bids, and a model which considers positive bids only. We find that ignoring negative values over-states the aggregate benefits of a woodland planting project by up to 44%.
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Bibliographic InfoPaper provided by University of Stirling, Division of Economics in its series Stirling Economics Discussion Papers with number 2008-10.
Date of creation: Jun 2008
Date of revision:
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Postal: Division of Economics, University of Stirling, Stirling, Scotland FK9 4LA
Phone: +44 (0)1786 467473
Fax: +44 (0)1786 467469
Web page: http://www.econ.stir.ac.uk/
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spike models; negative WTP; national parks; contingent valuation;
Other versions of this item:
- Nick Hanley & Sergio Colombo & Bengt Kriström & Fiona Watson, 2009. "Accounting for Negative, Zero and Positive Willingness to Pay for Landscape Change in a National Park," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 1-16.
- NEP-AGR-2008-11-04 (Agricultural Economics)
- NEP-ALL-2008-11-04 (All new papers)
- NEP-DCM-2008-11-04 (Discrete Choice Models)
- NEP-ENV-2008-11-04 (Environmental Economics)
- NEP-TUR-2008-11-04 (Tourism Economics)
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