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Investigating distance effects on environmental values: a choice modelling approach

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  • Concu, Giovanni B.

Abstract

Analysis of the relationship between distance and willingness to pay (WTP) is important for estimation and transfer of environmental benefits. Several contingent valuation (CV) studies have investigated this topic, but results are mixed. This paper describes a choice modelling (CM) application that estimates distance effects on parameters of three environmental attributes. Combinations of these attributes create different management policies for native vegetation. The CM study is based on a sampling procedure that provides a geographically balanced sample and statistical tests to choose the best specification of the distance–WTP relationship. Welfare analysis shows that disregarding distance causes under-estimation of individual and aggregated benefits and losses, seriously misdirecting resource allocation.

Suggested Citation

  • Concu, Giovanni B., 2007. "Investigating distance effects on environmental values: a choice modelling approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-20.
  • Handle: RePEc:ags:aareaj:118326
    DOI: 10.22004/ag.econ.118326
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    2. Rolfe, John & Windle, Jill, 2010. "Valuing environmental improvements in the Great Barrier Reef: Ecological and preference heterogeneity in local area case studies," Research Reports 95052, Australian National University, Environmental Economics Research Hub.
    3. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
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    6. Rolfe, John & Windle, Jill, 2012. "Testing benefit transfer of reef protection values between local case studies: The Great Barrier Reef in Australia," Ecological Economics, Elsevier, vol. 81(C), pages 60-69.
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    8. Day, Brett & Bateman, Ian & Binner, Amy & Ferrini, Silvia & Fezzi, Carlo, 2019. "Structurally-consistent estimation of use and nonuse values for landscape-wide environmental change," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    9. Windle, Jill & Rolfe, John, 2013. "The limitations of applying benefit transfer to assess the value of ecosystem services in a “generic” peri-urban, coastal town in Australia," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152183, Australian Agricultural and Resource Economics Society.
    10. Holland, Benedict M. & Johnston, Robert J., 2017. "Optimized quantity-within-distance models of spatial welfare heterogeneity," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 110-129.
    11. Wiktor L. Adamowicz & Klaus Glenk & Jürgen Meyerhoff, 2014. "Choice modelling research in environmental and resource economics," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 27, pages 661-674, Edward Elgar Publishing.
    12. Khong, Tien Dung & Young, Michael D. & Loch, Adam & Thennakoon, Jayanthi, 2018. "Mekong River Delta farm-household willingness to pay for salinity intrusion risk reduction," Agricultural Water Management, Elsevier, vol. 200(C), pages 80-89.
    13. Schaafsma, Marije & Brouwer, Roy & Rose, John, 2012. "Directional heterogeneity in WTP models for environmental valuation," Ecological Economics, Elsevier, vol. 79(C), pages 21-31.
    14. Tait, Peter & Baskaran, Ramesh & Cullen, Ross & Bicknell, Kathryn, 2012. "Nonmarket valuation of water quality: Addressing spatially heterogeneous preferences using GIS and a random parameter logit model," Ecological Economics, Elsevier, vol. 75(C), pages 15-21.
    15. Meyerhoff, Jürgen, 2013. "Do turbines in the vicinity of respondents' residences influence choices among programmes for future wind power generation?," Journal of choice modelling, Elsevier, vol. 7(C), pages 58-71.
    16. Tait, Peter R. & Baskaran, Ramesh, 2011. "Incorporating Local Water Quality in Welfare Measures of Agri-environmental Policy: A Choice Modelling Approach Employing GIS," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116074, European Association of Agricultural Economists.
    17. Søren B. Olsen & Cathrine U. Jensen & Toke E. Panduro, 2020. "Modelling Strategies for Discontinuous Distance Decay in Willingness to Pay for Ecosystem Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 351-386, February.
    18. Klaus Glenk & Robert J. Johnston & Jürgen Meyerhoff & Julian Sagebiel, 2020. "Spatial Dimensions of Stated Preference Valuation in Environmental and Resource Economics: Methods, Trends and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 215-242, February.
    19. Roberto Ponce & Felipe Vásquez & Alejandra Stehr & Patrick Debels & Carlos Orihuela, 2011. "Estimating the Economic Value of Landscape Losses Due to Flooding by Hydropower Plants in the Chilean Patagonia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(10), pages 2449-2466, August.
    20. Jeremy Valck & Steven Broekx & Inge Liekens & Joris Aertsens & Liesbet Vranken, 2017. "Testing the Influence of Substitute Sites in Nature Valuation by Using Spatial Discounting Factors," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 17-43, January.
    21. Choi, Andy S. & Lee, Choong-Ki & Tanaka, Katsuya & Xu, Honggang, 2018. "Value spillovers from the Korean DMZ areas and social desirability," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 75(C), pages 95-104.
    22. Giovanni B Concu, 2009. "Measuring Environmental Externality Spillovers through Choice Modelling," Environment and Planning A, , vol. 41(1), pages 199-212, January.
    23. Tomas Badura & Silvia Ferrini & Michael Burton & Amy Binner & Ian J. Bateman, 2020. "Using Individualised Choice Maps to Capture the Spatial Dimensions of Value Within Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 297-322, February.
    24. Yao, Richard T. & Scarpa, Riccardo & Turner, James A. & Barnard, Tim D. & Rose, John M. & Palma, João H.N. & Harrison, Duncan R., 2014. "Valuing biodiversity enhancement in New Zealand's planted forests: Socioeconomic and spatial determinants of willingness-to-pay," Ecological Economics, Elsevier, vol. 98(C), pages 90-101.

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    More about this item

    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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