IDEAS home Printed from
   My bibliography  Save this article

Heterogeneity in Environmental Demand


  • Daniel J. Phaneuf

    () (Department of Agricultural and Applied Economics, University of Wisconsin, Madison, Wisconsin 53706)


Heterogeneity is a defining characteristic of environmental demand studies that use household-level data. People make different choices due to observed and unobserved differences in preferences and constraints, choice elements are quality-differentiated commodities that can be consumed in different ways, and observed characteristics of people are often import for policy. In this review I examine how environmental economists have responded to the challenges and opportunities this heterogeneity implies. I categorize the types of heterogeneity that can be present, provide examples of each, and propose criteria to use in deciding when explicit attention should be paid to the different types. I then show how a variety of economic and econometric models have been used to accommodate the various dimensions of observed and unobserved heterogeneity, and I discuss opportunities for further research on the topic.

Suggested Citation

  • Daniel J. Phaneuf, 2013. "Heterogeneity in Environmental Demand," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 227-244, June.
  • Handle: RePEc:anr:reseco:v:5:y:2013:p:227-244

    Download full text from publisher

    File URL:
    Download Restriction: Full text downloads are only available to subscribers. Visit the abstract page for more information.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Wendong Zhang & Brent Sohngen, 2018. "Do US Anglers Care about Harmful Algal Blooms? A discrete choice experiment of Lake Erie recreational anglers," Center for Agricultural and Rural Development (CARD) Publications 17-wp573, Center for Agricultural and Rural Development (CARD) at Iowa State University.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anr:reseco:v:5:y:2013:p:227-244. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ( General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.