IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v69y2010i5p1124-1139.html
   My bibliography  Save this article

Valuing quality changes in Caribbean coastal waters for heterogeneous beach visitors

Author

Listed:
  • Beharry-Borg, Nesha
  • Scarpa, Riccardo

Abstract

The quality of the coastal waters is now a major environmental issue in Tobago due to its role in supporting the economically important tourism sector and for safeguarding public health. In this paper we report the results of two choice experiments designed to estimate willingness to pay (WTP) for an improvement in coastal water quality for two groups of beach recreationists: snorkellers and nonsnorkellers. Responses from 284 respondents were analyzed and included both locals and tourists to the island who participated in beach recreation. Latent class and mixed multinomial logit models were used in the analysis of the responses to explain the presence of any unobserved taste heterogeneity. An additional advantage of using these models was the ability to determine individual-specific WTP estimates for each attribute. The results indicate that individual specific-means of WTP estimates vary significantly between snorkellers and nonsnorkellers. The results from the analysis using the latent class model identified two subgroups with distinct preferences with the snorkeller group. Unobserved taste heterogeneity was better represented for the nonsnorkellers with a mixed multinomial logit model. This study not only addresses the lack of valuation estimates on this island but also demonstrates the importance of using estimation methods that account for individual-specific differences in WTP estimates. The inclusion of individual preferences is especially important in the context of a small-island developing country where there is a need to prioritise policy recommendations due to limited financial resources and conflicting objectives for natural resource management.

Suggested Citation

  • Beharry-Borg, Nesha & Scarpa, Riccardo, 2010. "Valuing quality changes in Caribbean coastal waters for heterogeneous beach visitors," Ecological Economics, Elsevier, vol. 69(5), pages 1124-1139, March.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:5:p:1124-1139
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(09)00508-4
    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. Brown, Katrina & Adger, W. Neil & Tompkins, Emma & Bacon, Peter & Shim, David & Young, Kathy, 2001. "Trade-off analysis for marine protected area management," Ecological Economics, Elsevier, vol. 37(3), pages 417-434, June.
    2. Stephen Hynes & Nick Hanley & Riccardo Scarpa, 2008. "Effects on Welfare Measures of Alternative Means of Accounting for Preference Heterogeneity in Recreational Demand Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1011-1027.
    3. Greg Lindsey & Ann Holmes, 2002. "Tourist Support for Marine Protection in Nha Trang, Viet Nam," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 45(4), pages 461-480.
    4. George Parsons & Steven Thur, 2008. "Valuing Changes in the Quality of Coral Reef Ecosystems: A Stated Preference Study of SCUBA Diving in the Bonaire National Marine Park," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(4), pages 593-608, August.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, May.
    6. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
    7. Kling, Catherine L. & Bockstael, Nancy & Hanemann, W. Michael, 1987. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers Archive 1594, Iowa State University, Department of Economics.
    8. Riccardo Scarpa & Kenneth G. Willis & Melinda Acutt, 2007. "Valuing externalities from water supply: Status quo, choice complexity and individual random effects in panel kernel logit analysis of choice experiments," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 50(4), pages 449-466.
    9. Joseph A. Herriges & Daniel J. Phaneuf, 2002. "Inducing Patterns of Correlation and Substitution in Repeated Logit Models of Recreation Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1076-1090.
    10. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    11. Leida Mercado & James Lassoie, 2002. "Assessing Tourists' Preferences for Recreational and Environmental Management Programs Central to the Sustainable Development of a Tourism Area in the Dominican Republic," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 4(3), pages 253-278, September.
    12. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    13. Milon, J. Walter & Scrogin, David, 2006. "Latent preferences and valuation of wetland ecosystem restoration," Ecological Economics, Elsevier, vol. 56(2), pages 162-175, February.
    14. Stephane Hess & John Rose, 2009. "Should Reference Alternatives in Pivot Design SC Surveys be Treated Differently?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 297-317, March.
    15. Naidoo, Robin & Adamowicz, Wiktor L., 2005. "Biodiversity and nature-based tourism at forest reserves in Uganda," Environment and Development Economics, Cambridge University Press, vol. 10(02), pages 159-178, May.
    16. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, April.
    17. Ricardo Scarpa & Mara Thiene & Kenneth Train, 2006. "Utility in WTP Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," Working Papers in Economics 06/15, University of Waikato.
    18. Joan Walker & Jieping Li, 2007. "Latent lifestyle preferences and household location decisions," Journal of Geographical Systems, Springer, vol. 9(1), pages 77-101, April.
    19. Scarpa, R. & Thiene, M. & Train, K., 2008. "Appendix to Utility in WTP space: a tool to address confounding random scale effects in destination choice to the Alps," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(4), November.
    20. Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November.
    21. Bell, Frederick W. & Leeworthy, Vernon R., 1990. "Recreational demand by tourists for saltwater beach days," Journal of Environmental Economics and Management, Elsevier, vol. 18(3), pages 189-205, May.
    22. Bill Provencher & Kenneth A. Baerenklau & Richard C. Bishop, 2002. "A Finite Mixture Logit Model of Recreational Angling with Serially Correlated Random Utility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1066-1075.
    23. Eric Ruto & Guy Garrod & Riccardo Scarpa, 2008. "Valuing animal genetic resources: a choice modeling application to indigenous cattle in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 89-98, January.
    24. Brander, Luke M. & Van Beukering, Pieter & Cesar, Herman S.J., 2007. "The recreational value of coral reefs: A meta-analysis," Ecological Economics, Elsevier, vol. 63(1), pages 209-218, June.
    25. Eggert, Håkan & Olsson, Björn, 2004. "Heterogeneous preferences for marine amenities: A choice experiment applied to water quality," Working Papers in Economics 126, University of Gothenburg, Department of Economics.
    26. Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294.
    27. Riccardo Scarpa & Mara Thiene, 2005. "Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences," Land Economics, University of Wisconsin Press, vol. 81(3).
    28. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    29. 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.
    30. Kenneth E. McConnell, 1977. "Congestion and Willingness to Pay: A Study of Beach Use," Land Economics, University of Wisconsin Press, vol. 53(2), pages 185-195.
    31. Mauricio Sillano & Juan de Dios Ortúzar, 2005. "Willingness-to-pay estimation with mixed logit models: some new evidence," Environment and Planning A, Pion Ltd, London, vol. 37(3), pages 525-550, March.
    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. Yoo, James & Ready, Richard C., 2014. "Preference heterogeneity for renewable energy technology," Energy Economics, Elsevier, vol. 42(C), pages 101-114.
    2. Stephane Hess & Nesha Beharry-Borg, 2012. "Accounting for Latent Attitudes in Willingness-to-Pay Studies: The Case of Coastal Water Quality Improvements in Tobago," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(1), pages 109-131, May.
    3. Peng, Marcus & Oleson, Kirsten L.L., 2017. "Beach Recreationalists' Willingness to Pay and Economic Implications of Coastal Water Quality Problems in Hawaii," Ecological Economics, Elsevier, vol. 136(C), pages 41-52.
    4. Paudel, Krishna P. & Caffey, Rex H. & Devkota, Nirmala, 2011. "An Evaluation of Factors Affecting the Choice of Coastal Recreational Activities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(02), May.
    5. Araña, Jorge E. & León, Carmelo J., 2013. "Dynamic hypothetical bias in discrete choice experiments: Evidence from measuring the impact of corporate social responsibility on consumers demand," Ecological Economics, Elsevier, vol. 87(C), pages 53-61.
    6. Penn, Jerrod & Hu, Wuyang & Cox, Linda J. & Kozloff, Lara, 2012. "Beach Quality and Recreational Values: A Pictorialized Stated Preference Analysis of Residents and Tourists," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119813, Southern Agricultural Economics Association.
    7. Sagebiel, Julian, 2017. "Preference heterogeneity in energy discrete choice experiments: A review on methods for model selection," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 804-811.
    8. Cati Torres & Sergio Colombo & Nick Hanley, 2014. "Incorrectly accounting for preference heterogeneity in choice experiments: what are the implications for welfare measurement?," Discussion Papers in Environment and Development Economics 2014-07, University of St. Andrews, School of Geography and Sustainable Development.
    9. Cranford, Matthew & Mourato, Susana, 2014. "Credit-Based Payments for Ecosystem Services: Evidence from a Choice Experiment in Ecuador," World Development, Elsevier, vol. 64(C), pages 503-520.
    10. Jerrod Penn & Wuyang Hu & Linda Cox & Lara Kozloff, 2016. "Values for Recreational Beach Quality in Oahu, Hawaii," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 47-62.
    11. Zhou, Li & Lei, Lei, 2017. "Can money always talk? : implication for environmental compensation by international agribusiness," IDE Discussion Papers 641, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. 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.
    13. David Hensher, 2014. "Attribute processing as a behavioural strategy in choice making," Chapters,in: Handbook of Choice Modelling, chapter 12, pages 268-289 Edward Elgar Publishing.
    14. Yoo, James & Simonit, Silvio & Connors, John P. & Kinzig, Ann P. & Perrings, Charles, 2014. "The valuation of off-site ecosystem service flows: Deforestation, erosion and the amenity value of lakes in Prescott, Arizona," Ecological Economics, Elsevier, vol. 97(C), pages 74-83.
    15. Torres, Catalina M. & Colombo, Sergio & Hanley, Nick, 2014. "Incorrectly accounting for preference heterogeneity in choice experiments: Implications for welfare measurement," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 14(2).
    16. Halkos, George & Matsiori, Steriani, 2017. "Estimating recreational values of coastal zones," MPRA Paper 80911, University Library of Munich, Germany.
    17. Garcίa-Yi, Jaqueline, 2010. "Heterogeneous Motivations of Household - Level Coca Growing Areas: The Case of an Indigenous Community in Peru," Proceedings of the German Development Economics Conference, Hannover 2010 23, Verein für Socialpolitik, Research Committee Development Economics.
    18. Maria Cunha-e-Sá & Lívia Madureira & Luis Nunes & Vladimir Otrachshenko, 2012. "Protesting and Justifying: A Latent Class Model for Contingent Valuation with Attitudinal Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(4), pages 531-548, August.
    19. Vecchiato, D. & Tempesta, T., 2013. "Valuing the benefits of an afforestation project in a peri-urban area with choice experiments," Forest Policy and Economics, Elsevier, vol. 26(C), pages 111-120.
    20. Kountouris, Yiannis & Nakic, Zoran & Sauer, Johannes, 2015. "Political instability and non-market valuation: Evidence from Croatia," Resource and Energy Economics, Elsevier, vol. 41(C), pages 19-39.

    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:69:y:2010:i:5:p:1124-1139. 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.