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Willingness to pay for unfamiliar public goods: Preserving cold-water coral in Norway

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  • Aanesen, Margrethe
  • Armstrong, Claire
  • Czajkowski, Mikołaj
  • Falk-Petersen, Jannike
  • Hanley, Nick
  • Navrud, Ståle

Abstract

The world's largest concentration of cold-water coral (CWC) is found off the Norwegian coast. Most CWC discoveries are recent, posing new challenges for Norwegian coastal and fishery authorities regarding the management of deep-sea resources. Scientific knowledge of CWC is limited, and many citizens have not even heard about them. This creates problems for the application of the stated preference methods to capture their economic value, and very few such studies have been conducted. To fill this gap, we designed a discrete choice experiment, which was implemented in a valuation workshop setting in order to derive estimates of participants' willingness to pay (WTP) for increasing the protection of CWC. Despite the fact that marine industries such as oil/gas and fisheries could be adversely affected by CWC protection, this did not reduce the respondents' willingness to pay for further protection. The possibility that CWCs play an important role as habitat for fish was the single most important variable to explain respondents' WTP for CWC protection. The survey revealed a high degree of preference heterogeneity, while we found an average WTP for CWC protection in the range of EUR 274–287.

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  • Aanesen, Margrethe & Armstrong, Claire & Czajkowski, Mikołaj & Falk-Petersen, Jannike & Hanley, Nick & Navrud, Ståle, 2015. "Willingness to pay for unfamiliar public goods: Preserving cold-water coral in Norway," Ecological Economics, Elsevier, vol. 112(C), pages 53-67.
  • Handle: RePEc:eee:ecolec:v:112:y:2015:i:c:p:53-67
    DOI: 10.1016/j.ecolecon.2015.02.007
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    References listed on IDEAS

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    Cited by:

    1. Folkersen, Maja Vinde, 2018. "Ecosystem valuation: Changing discourse in a time of climate change," Ecosystem Services, Elsevier, vol. 29(PA), pages 1-12.
    2. Cati Torres & Nick Hanley, 2016. "Communicating research on the economic valuation of coastal and marine ecosystem services," DEA Working Papers 81, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    3. Karlõševa, Aljona & Nõmmann, Sulev & Nõmmann, Tea & Urbel-Piirsalu, Evelin & Budziński, Wiktor & Czajkowski, Mikołaj & Hanley, Nick, 2016. "Marine trade-offs: Comparing the benefits of off-shore wind farms and marine protected areas," Energy Economics, Elsevier, vol. 55(C), pages 127-134.
    4. Nick Hanley & Mikołaj Czajkowski, 2017. "Stated Preference valuation methods: an evolving tool for understanding choices and informing policy," Working Papers 2017-01, Faculty of Economic Sciences, University of Warsaw.
    5. Irvine, Katherine N. & O’Brien, Liz & Ravenscroft, Neil & Cooper, Nigel & Everard, Mark & Fazey, Ioan & Reed, Mark S. & Kenter, Jasper O., 2016. "Ecosystem services and the idea of shared values," Ecosystem Services, Elsevier, vol. 21(PB), pages 184-193.
    6. Michela Faccioli & Mikołaj Czajkowski & Klaus Glenk & Julia Martin-Ortega, 2018. "Environmental attitudes and place identity as simultaneous determinants of preferences for environmental goods," Working Papers 2018-08, Faculty of Economic Sciences, University of Warsaw.
    7. Börger, Tobias & Hattam, Caroline, 2017. "Motivations matter: Behavioural determinants of preferences for remote and unfamiliar environmental goods," Ecological Economics, Elsevier, vol. 131(C), pages 64-74.
    8. Nick Hanley & Stephen Hynes & Niels Jobstvogt & David M. Paterson, 2014. "Economic valuation of marine and coastal ecosystems:Is it currently fit for purpose?," Discussion Papers in Environment and Development Economics 2014-11, University of St. Andrews, School of Geography and Sustainable Development.
    9. Nicholas Tyack & Milan Ščasný, 2018. "Social Valuation of Genebank Activities: Assessing Public Demand for Genetic Resource Conservation in the Czech Republic," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-19, November.
    10. Erlend Dancke Sandorf, 2019. "Did You Miss Something? Inattentive Respondents in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1197-1235, August.
    11. Kenter, Jasper O. & Jobstvogt, Niels & Watson, Verity & Irvine, Katherine N. & Christie, Michael & Bryce, Ros, 2016. "The impact of information, value-deliberation and group-based decision-making on values for ecosystem services: Integrating deliberative monetary valuation and storytelling," Ecosystem Services, Elsevier, vol. 21(PB), pages 270-290.
    12. Sandorf, Erlend Dancke & Aanesen, Margrethe & Navrud, Ståle, 2016. "Valuing unfamiliar and complex environmental goods: A comparison of valuation workshops and internet panel surveys with videos," Ecological Economics, Elsevier, vol. 129(C), pages 50-61.
    13. Sandorf, Erlend Dancke & Campbell, Danny & Hanley, Nick, 2017. "Disentangling the influence of knowledge on attribute non-attendance," Journal of choice modelling, Elsevier, vol. 24(C), pages 36-50.
    14. Zanoli, Raffaele & Carlesi, Lorenzo & Danovaro, Roberto & Mandolesi, Serena & Naspetti, Simona, 2015. "Valuing unfamiliar Mediterranean deep-sea ecosystems using visual Q-methodology," Marine Policy, Elsevier, vol. 61(C), pages 227-236.
    15. Erlend Dancke Sandorf & Danny Campbell & Nick Hanley, 2015. "Disentangling the Influence of Knowledge on Processing Strategies in Choice Modelling," Discussion Papers in Environment and Development Economics 2015-02, University of St. Andrews, School of Geography and Sustainable Development.
    16. Soto, José R. & Adams, Damian C. & Escobedo, Francisco J., 2016. "Landowner attitudes and willingness to accept compensation from forest carbon offsets: Application of best–worst choice modeling in Florida USA," Forest Policy and Economics, Elsevier, vol. 63(C), pages 35-42.
    17. Tobias Börger & Oliver Frör & Sören Weiß, 2017. "The relationship between perceived difficulty and randomness in discrete choice experiments: Investigating reasons for and consequences of difficulty," Discussion Papers in Environment and Development Economics 2017-03, University of St. Andrews, School of Geography and Sustainable Development.
    18. Abate, Tenaw G. & Börger, Tobias & Aanesen, Margrethe & Falk-Andersson, Jannike & Wyles, Kayleigh J. & Beaumont, Nicola, 2020. "Valuation of marine plastic pollution in the European Arctic: Applying an integrated choice and latent variable model to contingent valuation," Ecological Economics, Elsevier, vol. 169(C).
    19. Völker, Marc & Lienhoop, Nele, 2016. "Exploring group dynamics in deliberative choice experiments," Ecological Economics, Elsevier, vol. 123(C), pages 57-67.
    20. Hattam, Caroline & Böhnke-Henrichs, Anne & Börger, Tobias & Burdon, Daryl & Hadjimichael, Maria & Delaney, Alyne & Atkins, Jonathan P. & Garrard, Samantha & Austen, Melanie C., 2015. "Integrating methods for ecosystem service assessment and valuation: Mixed methods or mixed messages?," Ecological Economics, Elsevier, vol. 120(C), pages 126-138.

    More about this item

    Keywords

    Cold-water coral; Willingness to pay; Unfamiliar public good; Discrete choice experiment; Natural resource management;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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