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Willingness to accept compensation for the environmental risks of oil transport on the Amazon: A choice modeling experiment

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  • Casey, James F.
  • Kahn, James R.
  • Rivas, Alexandre A.F.

Abstract

This paper looks at the question of whether subsistence level/indigenous people place a value on the preservation of ecosystems independent of direct impacts of environmental change, such as impacts on their production activities. The economics literature generally suggests that non-use values don't exist among the poor and in the informal sector of the economy. We examine this issue through a choice modeling experiment. A survey was conducted of rainforest communities who live on the banks of the Amazon River (Rio Solimões), in the vicinity of proposed oil and gas pipelines. The data were analyzed in the choice modeling framework, revealing relatively high amounts of compensation that were necessary in order to accept the potential ecosystem damages associated with oil transport, even if the people were completely compensated for direct damages such as loss of access to productive resources. These results suggest that environmental quality is important for its own sake, a result that is very different from the implicit assumption among many economists.

Suggested Citation

  • Casey, James F. & Kahn, James R. & Rivas, Alexandre A.F., 2008. "Willingness to accept compensation for the environmental risks of oil transport on the Amazon: A choice modeling experiment," Ecological Economics, Elsevier, vol. 67(4), pages 552-559, November.
  • Handle: RePEc:eee:ecolec:v:67:y:2008:i:4:p:552-559
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    References listed on IDEAS

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    Cited by:

    1. Ildephonse, Musafili & Oluoch-Kosura, Willis & Otieno, Jakinda, 2016. "Assessing the value farmers attach to Volcanoes National Park management atrtributes in Rwanda: a choice experiment approach," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246273, African Association of Agricultural Economists (AAAE).
    2. Juan Camilo Cárdenas, 2009. "Experiments in Environment and Development," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 157-182, September.
    3. Aravena, Claudia & Martinsson, Peter & Scarpa, Riccardo, 2014. "Does money talk? — The effect of a monetary attribute on the marginal values in a choice experiment," Energy Economics, Elsevier, vol. 44(C), pages 483-491.
    4. Juan Cardenas, 2011. "Social Norms and Behavior in the Local Commons as Seen Through the Lens of Field Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(3), pages 451-485, March.
    5. de Rezende, Carlos Eduardo & Kahn, James R. & Passareli, Layra & Vásquez, William F., 2015. "An economic valuation of mangrove restoration in Brazil," Ecological Economics, Elsevier, vol. 120(C), pages 296-302.
    6. repec:eee:ecolec:v:140:y:2017:i:c:p:157-165 is not listed on IDEAS
    7. Tanya O’Garra, 2009. "Bequest Values for Marine Resources: How Important for Indigenous Communities in Less-Developed Economies?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(2), pages 179-202, October.
    8. Sonja S. Teelucksingh & Paulo A.L.D. Nunes, 2010. "Biodiversity Valuation in Developing Countries: A Focus on Small Island Developing States (SIDS)," Working Papers 2010.111, Fondazione Eni Enrico Mattei.
    9. Lüthi, Sonja & Wüstenhagen, Rolf, 2012. "The price of policy risk — Empirical insights from choice experiments with European photovoltaic project developers," Energy Economics, Elsevier, vol. 34(4), pages 1001-1011.
    10. Oleson, Kirsten L.L. & Barnes, Michele & Brander, Luke M. & Oliver, Thomas A. & van Beek, Ingrid & Zafindrasilivonona, Bienvenue & van Beukering, Pieter, 2015. "Cultural bequest values for ecosystem service flows among indigenous fishers: A discrete choice experiment validated with mixed methods," Ecological Economics, Elsevier, vol. 114(C), pages 104-116.

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