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Using choice experiments to value catchment and estuary health in Tasmania with individual preference heterogeneity

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  • Kragt, Marit Ellen
  • Bennett, Jeffrey W.

Abstract

Choice experiments (CE) have become widespread as an approach to environmental valuation in both Australia and overseas. However, there are few valuation studies that have addressed natural resource management (NRM) changes in Tasmania. Furthermore, few studies have focussed on the estimation of estuary values. The CE study described in this paper aims to analyse community preferences for NRM options in the George catchment, Tasmania. Catchment health attributes were: the length of native riverside vegetation; the number of rare native animal and plant species in the George catchment; and area of healthy seagrass beds in the Georges Bay, which was used as a measure of estuary condition. Mixed logit models with interactions between socio-economic variables and the choice attributes were estimated to account for systematic and random taste heterogeneity across respondents. Results reveal considerable variation in preferences towards the attributes and show that value estimates are significantly impacted by the way in which we account for preference heterogeneity. Preference heterogeneity thus needs to be considered when estimating community willingness- to-pay for environmental changes. This study further shows little responsiveness to the presented changes in estuary seagrass area.

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  • Kragt, Marit Ellen & Bennett, Jeffrey W., 2011. "Using choice experiments to value catchment and estuary health in Tasmania with individual preference heterogeneity," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(2), pages 1-21.
  • Handle: RePEc:ags:aareaj:176878
    DOI: 10.22004/ag.econ.176878
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    1. Kragt, Marit Ellen & Llewellyn, Rick S., 2013. "Using choice experiments to improve the design of weed decision support tools," Working Papers 147031, University of Western Australia, School of Agricultural and Resource Economics.
    2. Kragt, Marit Ellen, 2013. "Comparing models of unobserved heterogeneity in environmental choice experiments," Working Papers 144447, University of Western Australia, School of Agricultural and Resource Economics.
    3. Kragt, Marit Ellen, 2013. "Evidence-based Research in Environmental Choice Experiments," Working Papers 153335, University of Western Australia, School of Agricultural and Resource Economics.
    4. Owuor, Margaret Awuor & Mulwa, Richard & Otieno, Philip & Icely, John & Newton, Alice, 2019. "Valuing mangrove biodiversity and ecosystem services: A deliberative choice experiment in Mida Creek, Kenya," Ecosystem Services, Elsevier, vol. 40(C).
    5. Fanus Asefaw Aregay & Liuyang Yao & Minjuan Zhao, 2016. "Spatial Preference Heterogeneity for Integrated River Basin Management: The Case of the Shiyang River Basin, China," Sustainability, MDPI, vol. 8(10), pages 1-17, September.
    6. Davis, Katrina J & Burton, Michael & Kragt, Marit E, 2016. "Discrete choice models: scale heterogeneity and why it matters," Working Papers 235373, University of Western Australia, School of Agricultural and Resource Economics.
    7. Sinclair, Michael & Vishnu Sagar, M.K. & Knudsen, Camilla & Sabu, Joseph & Ghermandi, Andrea, 2021. "Economic appraisal of ecosystem services and restoration scenarios in a tropical coastal Ramsar wetland in India," Ecosystem Services, Elsevier, vol. 47(C).
    8. Kragt, Marit Ellen, 2013. "Integrating biophysical and economic systems in a Bayesian Network Hydro-economic framework," Working Papers 153334, University of Western Australia, School of Agricultural and Resource Economics.
    9. Star, Megan & Rolfe, John & Barbi, Emily, 2019. "Do outcome or input risks limit adoption of environmental projects: Rehabilitating gullies in Great Barrier Reef catchments," Ecological Economics, Elsevier, vol. 161(C), pages 73-82.
    10. Zander, Kerstin K. & Signorello, Giovanni & De Salvo, Maria & Gandini, Gustavo & Drucker, Adam G., 2013. "Assessing the total economic value of threatened livestock breeds in Italy: Implications for conservation policy," Ecological Economics, Elsevier, vol. 93(C), pages 219-229.
    11. Dennis Guignet & Charles Griffiths & Heather Klemick & Patrick J. Walsh, 2017. "The Implicit Price of Aquatic Grasses," Marine Resource Economics, University of Chicago Press, vol. 32(1), pages 21-41.
    12. 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.
    13. Gibson, Fiona & Pannell, David & Boxall, Peter & Burton, Michael & Johnston, Robert & Kragt, Marit & Rogers, Abbie & Rolfe, John, 2016. "Non-market valuation in the economic analysis of natural hazards," Working Papers 236941, University of Western Australia, School of Agricultural and Resource Economics.
    14. Marit Kragt, 2013. "The Effects of Changing Cost Vectors on Choices and Scale Heterogeneity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(2), pages 201-221, February.
    15. Chris Moore & Dennis Guignet & Kelly B. Maguire & Chris Dockins & Nathalie B. Simon, 2015. "A Stated Preference Study of the Chesapeake Bay and Watershed Lakes," NCEE Working Paper Series 201506, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Nov 2015.
    16. Vaiknoras, Kate & Norton, George & Alwang, Jeffrey, 2015. "Farmer preferences for attributes of conservation agriculture in Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(2), pages 1-16.
    17. Abbie A. Rogers & Fiona L. Dempster & Jacob I. Hawkins & Robert J. Johnston & Peter C. Boxall & John Rolfe & Marit E. Kragt & Michael P. Burton & David J. Pannell, 2019. "Valuing non-market economic impacts from natural hazards," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 99(2), pages 1131-1161, November.
    18. Bethany Cooper & Lin Crase & Darryl Maybery, 2017. "Pushing the Governance Boundaries: Making Transparent the Role of Water Utilities in Managing Urban Waterways," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2429-2446, June.
    19. Marit E. Kragt, 2013. "Stated and Inferred Attribute Attendance Models: A Comparison with Environmental Choice Experiments," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 719-736, September.

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