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Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements

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Author Info
Danny Campbell () (Gibson Institute for Land, Food and Environment, Queen’s University Belfast)
W. George Hutchinson () (Gibson Institute for Land, Food and Environment, Queen’s University Belfast)
Riccardo Scarpa () (University of Waikato)

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Abstract

We report findings from a choice experiment survey designed to estimate the economic benefits from policy measures which improve the rural landscape under an agri-environment scheme in the Republic of Ireland. Using a panel mixed logit specification to account for unobserved taste heterogeneity we derive individual- specific willingness to pay estimates for each respondent in the sample. We subsequently investigate the existence of spatial dependence of these estimates. Results suggest the existence of positive spatial autocorrelation for all rural landscape attributes. As a means of benefit transfer, kriging methods are employed to interpolate willingness to pay estimates across the whole of the Republic of Ireland. The kriged WTP surfaces confirm the existence of spatial dependence and illustrate the implied spatial variation and regional disparities in WTP for all the rural landscape improvements.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0706.pdf
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Publisher Info
Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 07/06.

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Length: 28 pages
Date of creation: 23 Mar 2007
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Handle: RePEc:wai:econwp:07/06

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Related research
Keywords: landscape valuation; spatial distribution; choice experiments; non-market valuation;

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Find related papers by JEL classification:
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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  1. Danny Campbell & W. Hutchinson & Riccardo Scarpa, 2008. "Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(3), pages 401-417, November. [Downloadable!] (restricted)
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