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Valuing Changes in Forest Biodiversity

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Author Info

  • Małgorzata Buszko-Briggs

    (Forest Research Institute, Warsaw)

  • Mikołaj Czajkowski

    ()
    (Faculty of Economic Sciences, University of Warsaw)

  • Nick Hanley

    (Department of Economics, University of Stirling)

Abstract

The paper offers an innovative approach to valuation of biodiversity. Instead of the prevailing approach of using only one indicator of biodiversity (usually number of species) we provide evidence that it is possible to provide attributes describing complex characteristics of biodiversity based on sound ecological knowledge. We argue that our approach managed to value the multi-level changes in the biological diversity, by using the attributes which described structural, species and functional diversity at the same time. Our study shows that even complex indicators of multi-level biodiversity might be successfully communicated to respondents in a comprehensible and meaningful way. The empirical application of the method is provided based on a choice experiment study conducted in Białowieża Forest, Poland. The results underline the importance of using multi-level indicators and question the validity of only species-level indicators. Interestingly, the respondents appreciated passive protection regimes, resulting in preservation of natural ecological processes. In addition, the respondents seemed to be concerned about means, and not only about the results of protection programmes. Finally, some conclusions for future applications and policy making are drawn.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP2.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2008-02.

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Length: 29 pages
Date of creation: Jul 2008
Date of revision:
Publication status: Published in Stirling Economics Discussion Papers, no. 2008-17
Handle: RePEc:war:wpaper:2008-02

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Related research

Keywords: biodiversity; forests; valuation; choice experiment;

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References

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  1. Hanley, Nicholas & Jacobsen, Jette Bredahl, 2008. "Are there income effects on global willingness to pay for biodiversity conservation?," Stirling Economics Discussion Papers 2008-03, University of Stirling, Division of Economics.
  2. Małgorzata Buszko-Briggs & Mikołaj Czajkowski & Nick Hanley, 2008. "Valuing Changes in Forest Biodiversity," Working Papers 2008-02, Faculty of Economic Sciences, University of Warsaw.
  3. 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.
  4. Hensher, David A. & Greene, William H., 2002. "Specification and estimation of the nested logit model: alternative normalisations," Transportation Research Part B: Methodological, Elsevier, vol. 36(1), pages 1-17, January.
  5. Sergio Colombo & Javier Calatrava-Requena & Nick Hanley, 2007. "Testing Choice Experiment for Benefit Transfer with Preference Heterogeneity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 135-151.
  6. 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, vol. 39(3), pages 247-263, March.
  7. David Pearce, 2007. "Do we really care about Biodiversity?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 313-333, May.
  8. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, October.
  9. Hanemann, W. Michael, 1982. "Applied Welfare Analysis with Qualitative Response Models," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7982f0k8, Department of Agricultural & Resource Economics, UC Berkeley.
  10. Bartczak, Anna & Lindhjem, Henrik & Navrud, Ståle & Zandersen, Marianne & Zylicz, Tomasz, 2008. "Valuing forest recreation on the national level in a transition economy: The case of Poland," MPRA Paper 11483, University Library of Munich, Germany.
  11. 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.
  12. Edward B. Barbier, 2007. "Valuing ecosystem services as productive inputs," Economic Policy, CEPR & CES & MSH, vol. 22, pages 177-229, 01.
  13. Garrod, G. D. & Willis, K. G., 1997. "The non-use benefits of enhancing forest biodiversity: A contingent ranking study," Ecological Economics, Elsevier, vol. 21(1), pages 45-61, April.
  14. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
  15. Pouta, Eija & Rekola, Mika & Kuuluvainen, Jari & Li, Chuan-Zhong & Tahvonen, Olli, 2002. "Willingness to pay in different policy-planning methods: insights into respondents' decision-making processes," Ecological Economics, Elsevier, vol. 40(2), pages 295-311, February.
  16. Chuan-zhong Li & Jari Kuuluvainen & Eija Pouta & Mika Rekola & Olli Tahvonen, 2004. "Using Choice Experiments to Value the Natura 2000 Nature Conservation Programs in Finland," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 29(3), pages 361-374, November.
  17. E. Roy Weintraub & Evelyn L. Forget, 2007. "Introduction," History of Political Economy, Duke University Press, vol. 39(5), pages 1-6, Supplemen.
  18. Colombo, Sergio & Calatrava-Requena, Javier & Conzalex-Roa, M.C., 2005. "Testing Choice Experiment for Benefit Transfer," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24747, European Association of Agricultural Economists.
  19. Heberlein, Thomas A. & Wilson, Matthew A. & Bishop, Richard C. & Schaeffer, Nora Cate, 2005. "Rethinking the scope test as a criterion for validity in contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 1-22, July.
  20. Nijkamp, Peter & Vindigni, Gabriella & Nunes, Paulo A.L.D., 2008. "Economic valuation of biodiversity: A comparative study," Ecological Economics, Elsevier, vol. 67(2), pages 217-231, September.
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Citations

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Cited by:
  1. Christopher Ambrey & Christopher Fleming, 2014. "Valuing Ecosystem Diversity in South East Queensland: A Life Satisfaction Approach," Social Indicators Research, Springer, vol. 115(1), pages 45-65, January.
  2. Buszko-Briggs, Malgorzata & Czajkowski, Mikolaj & Hanley, Nicholas, 2008. "Valuing Changes in Forest Biodiversity," Stirling Economics Discussion Papers 2008-17, University of Stirling, Division of Economics.
  3. Dianne McGrath, 2011. "Accounting for the Environment: Towards a Theoretical Perspective for Environmental Accounting and Reporting," Social and Environmental Accountability Journal, Taylor & Francis Journals, vol. 31(2), pages 169-170, September.
  4. Johnston, Robert J. & Schultz, Eric T. & Segerson, Kathleen & Besedin, Elena Y. & Ramachandran, Mahesh, 2013. "Stated Preferences for Intermediate versus Final Ecosystem Services: Disentangling Willingness to Pay for Omitted Outcomes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), April.
  5. Czajkowski, Mikołaj & Bartczak, Anna & Giergiczny, Marek & Navrud, Stale & Żylicz, Tomasz, 2014. "Providing preference-based support for forest ecosystem service management," Forest Policy and Economics, Elsevier, vol. 39(C), pages 1-12.
  6. Mikołaj Czajkowski & Anna Bartczak & Marek Giergiczny & Stale Navrud & Tomasz Żylicz, 2013. "Providing Preference-Based Support for Forest Ecosystem Service Management in Poland," Working Papers 2013-05, Faculty of Economic Sciences, University of Warsaw.
  7. Minjuan Zhao & Robert Johnston & Eric Schultz, 2013. "What to Value and How? Ecological Indicator Choices in Stated Preference Valuation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 56(1), pages 3-25, September.
  8. Ambrey, Christopher L. & Fleming, Christopher M., 2011. "Valuing Ecosystem Diversity in South East Queensland: A Life Satisfaction Approach," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115347, New Zealand Agricultural and Resource Economics Society.

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