IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v129y2016icp230-240.html
   My bibliography  Save this article

Individual preferences regarding environmental offset and welfare compensation: a choice experiment application to an offshore wind farm project

Author

Listed:
  • Kermagoret, Charlène
  • Levrel, Harold
  • Carlier, Antoine
  • Dachary-Bernard, Jeanne

Abstract

This paper uses the choice experiment method to investigate the preferences of local communities with respect to various compensatory measures in connection with a development project. A survey was conducted among recreational users of the bay of Saint-Brieuc, where an offshore wind farm is currently planned. The goal is to identify the preferences of the bay's users with respect to various compensation possibilities: monetary compensation, investment in publicly owned assets, or the ecological restoration. Two multinomial logit (MNL) models and a latent class (LC) model are used to explore the preferences and some sources of heterogeneity within the community. The results of this study show that form of compensation is an important determinant of preferences and has an effect on the acceptability towards the compensation principle. More precisely, results shows that compensation is better accepted if it obeys the principle of strong sustainability, which includes ecological restoration for the gain of the population as a whole and which excludes monetary transactions, associated with the bribe effect. The study also highlights the naturalists' specific attitude for who compensation should be determined within a regulatory framework, one which imposes compensatory measures related to objectively determined ecological impacts.

Suggested Citation

  • Kermagoret, Charlène & Levrel, Harold & Carlier, Antoine & Dachary-Bernard, Jeanne, 2016. "Individual preferences regarding environmental offset and welfare compensation: a choice experiment application to an offshore wind farm project," Ecological Economics, Elsevier, vol. 129(C), pages 230-240.
  • Handle: RePEc:eee:ecolec:v:129:y:2016:i:c:p:230-240
    DOI: 10.1016/j.ecolecon.2016.05.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800916305936
    Download Restriction: Full text for ScienceDirect subscribers only

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

    References listed on IDEAS

    as
    1. Haggett, Claire, 2011. "Understanding public responses to offshore wind power," Energy Policy, Elsevier, vol. 39(2), pages 503-510, February.
    2. Mbolatiana Rambonilaza, 2004. "Évaluation de la demande de paysage : état de l’art et réflexions sur la méthode du transfert des benefices," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 70, pages 77-101.
    3. Stern, David I., 1997. "Limits to substitution and irreversibility in production and consumption: A neoclassical interpretation of ecological economics," Ecological Economics, Elsevier, vol. 21(3), pages 197-215, June.
    4. Groothuis, Peter A. & Groothuis, Jana D. & Whitehead, John C., 2008. "Green vs. green: Measuring the compensation required to site electrical generation windmills in a viewshed," Energy Policy, Elsevier, vol. 36(4), pages 1545-1550, April.
    5. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    7. Gastineau, Pascal & Taugourdeau, Emmanuelle, 2014. "Compensating for environmental damages," Ecological Economics, Elsevier, vol. 97(C), pages 150-161.
    8. Vanja WESTERBERG & Jette Bredahl JACOBSEN & Robert LIFRAN, 2012. "The case for offshore wind farms, artificial reefs and sustainable tourism in the French Mediterranean," Working Papers 12-11, LAMETA, Universitiy of Montpellier, revised Apr 2012.
    9. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    10. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    11. Ekin Birol & Melinda Smale & Ágnes Gyovai, 2006. "Using a Choice Experiment to Estimate Farmers’ Valuation of Agrobiodiversity on Hungarian Small Farms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(4), pages 439-469, August.
    12. Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2010. "Preferences for site and environmental functions when selecting forthcoming national parks," Ecological Economics, Elsevier, vol. 69(7), pages 1532-1544, May.
    13. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
    14. Alexander, Karen A. & Wilding, Thomas A. & Jacomina Heymans, Johanna, 2013. "Attitudes of Scottish fishers towards marine renewable energy," Marine Policy, Elsevier, vol. 37(C), pages 239-244.
    15. Mbolatiana Rambonilaza, 2004. "Évaluation de la demande de paysage : état de l’art et réflexions sur la méthode du transfert des benefices," Post-Print hal-01201064, HAL.
    16. Pascal Gastineau, 2014. "Compensating for environmental damages," Post-Print hal-00968954, HAL.
    17. Carol Mansfield & George L. Van Houtven & Joel Huber, 2002. "Compensating for Public Harms: Why Public Goods Are Preferred to Money," Land Economics, University of Wisconsin Press, vol. 78(3), pages 368-389.
    18. Frey, Bruno S & Oberholzer-Gee, Felix & Eichenberger, Reiner, 1996. "The Old Lady Visits Your Backyard: A Tale of Morals and Markets," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1297-1313, December.
    19. Kosenius, Anna-Kaisa, 2010. "Heterogeneous preferences for water quality attributes: The Case of eutrophication in the Gulf of Finland, the Baltic Sea," Ecological Economics, Elsevier, vol. 69(3), pages 528-538, January.
    20. Juutinen, Artti & Mitani, Yohei & Mäntymaa, Erkki & Shoji, Yasushi & Siikamäki, Pirkko & Svento, Rauli, 2011. "Combining ecological and recreational aspects in national park management: A choice experiment application," Ecological Economics, Elsevier, vol. 70(6), pages 1231-1239, April.
    21. Wolsink, Maarten, 2007. "Planning of renewables schemes: Deliberative and fair decision-making on landscape issues instead of reproachful accusations of non-cooperation," Energy Policy, Elsevier, vol. 35(5), pages 2692-2704, May.
    22. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    23. Jeff Bennett & Russell Blamey (ed.), 2001. "The Choice Modelling Approach to Environmental Valuation," Books, Edward Elgar Publishing, number 2028.
    24. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. repec:eee:ecolec:v:141:y:2017:i:c:p:245-260 is not listed on IDEAS
    2. Zaunbrecher, Barbara S. & Linzenich, Anika & Ziefle, Martina, 2017. "A mast is a mast is a mast…? Comparison of preferences for location-scenarios of electricity pylons and wind power plants using conjoint analysis," Energy Policy, Elsevier, vol. 105(C), pages 429-439.
    3. repec:eee:ecolec:v:142:y:2017:i:c:p:185-193 is not listed on IDEAS

    Corrections

    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:eee:ecolec:v:129:y:2016:i:c:p:230-240. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.