IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v102y2019icp1-9.html
   My bibliography  Save this article

Residential location choice in a developing country: What matter? A choice experiment application in Burkina Faso

Author

Listed:
  • Traoré, Sidnoma

Abstract

This paper assesses the benefits derived from environmental amenities, and more specifically from an urban park, from data on residential location choices. Household decisions regarding their residential location have important implications for urban planning. This paper uses a choice experiment pivot design (CE) to empirically analyze the trade-off between location attributes such as distance to an urban park and distance to workplace in the context of a developing country in which environmental questions are generally considered of lower priority. The limitation of transportation and communication networks suggests that the “tyranny of distance” is even more significant in this particular context than in larger cities located in more developed countries. Results show that inhabitants are willing to pay more in order to live close to an urban park than to their workplace. Furthermore, I find that preferences are heterogeneous and that the attribute corresponding to the presence of relatives in the area is associated with the highest willingness to pay.

Suggested Citation

  • Traoré, Sidnoma, 2019. "Residential location choice in a developing country: What matter? A choice experiment application in Burkina Faso," Forest Policy and Economics, Elsevier, vol. 102(C), pages 1-9.
  • Handle: RePEc:eee:forpol:v:102:y:2019:i:c:p:1-9
    DOI: 10.1016/j.forpol.2019.01.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934118302582
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.forpol.2019.01.021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Nechyba, Thomas J. & Strauss, Robert P., 1998. "Community choice and local public services: A discrete choice approach," Regional Science and Urban Economics, Elsevier, vol. 28(1), pages 51-73, January.
    2. Ng, Chen Feng, 2008. "Commuting distances in a household location choice model with amenities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 116-129, January.
    3. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
    4. Klaus Nowotny, 2011. "Commuting, Residence and Workplace Location Attractiveness and Local Public Goods," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2011(1), pages 109-136.
    5. Paul Krugman, 1996. "Urban Concentration: The Role of Increasing Returns and Transport Costs," International Regional Science Review, , vol. 19(1-2), pages 5-30, April.
    6. François Bonnieux & Alain Carpentier, 2007. "Préférence pour le statu quo dans la méthode des programmes : illustration à partir d'un problème de gestion forestière," Revue d'économie politique, Dalloz, vol. 117(5), pages 699-717.
    7. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January.
    8. David A. Hensher, 2004. "Identifying the Influence of Stated Choice Design Dimensionality on Willingness to Pay for Travel Time Savings," Journal of Transport Economics and Policy, University of Bath, vol. 38(3), pages 425-446, September.
    9. 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), pages 1-9, January.
    10. Baltas, George & Doyle, Peter, 2001. "Random utility models in marketing research: a survey," Journal of Business Research, Elsevier, vol. 51(2), pages 115-125, February.
    11. Daniel J. Phaneuf & Laura O. Taylor & John B. Braden, 2013. "Combining Revealed and Stated Preference Data to Estimate Preferences for Residential Amenities: A GMM Approach," Land Economics, University of Wisconsin Press, vol. 89(1), pages 30-52.
    12. 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.
    13. 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.
    14. Arthur H. Darling, 1973. "Measuring Benefits Generated by Urban Water Parks," Land Economics, University of Wisconsin Press, vol. 49(1), pages 23-34.
    15. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    16. Jos van Ommeren & Piet Rietveld & Peter Nijkamp & Jos van Ommeren & Piet Rietveld & Peter Nijkamp, 2004. "Job Moving, Residential Moving, and Commuting: A Search Perspective," Chapters, in: Location, Travel and Information Technology, chapter 11, pages 223-246, Edward Elgar Publishing.
    17. Jae Hong Kim & Francesca Pagliara & John Preston, 2005. "The Intention to Move and Residential Location Choice Behaviour," Urban Studies, Urban Studies Journal Limited, vol. 42(9), pages 1621-1636, August.
    18. Dietrich Earnhart, 2001. "Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations," Land Economics, University of Wisconsin Press, vol. 77(1), pages 12-29.
    19. Hensher, David A. & Rose, John M., 2007. "Development of commuter and non-commuter mode choice models for the assessment of new public transport infrastructure projects: A case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(5), pages 428-443, June.
    20. Tae-Kyung Kim & Mark W Horner, 2003. "Exploring Spatial Effects on Urban Housing Duration," Environment and Planning A, , vol. 35(8), pages 1415-1429, August.
    21. Dietrich Earnhart, 2006. "Using Contingent-Pricing Analysis to Value Open Space and Its Duration at Residential Locations," Land Economics, University of Wisconsin Press, vol. 82(1), pages 17-35.
    22. Train, Kenneth & Wilson, Wesley W., 2008. "Estimation on stated-preference experiments constructed from revealed-preference choices," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 191-203, March.
    23. Mitch Renkow & Dale Hoover, 2000. "Commuting, Migration, and Rural‐Urban Population Dynamics," Journal of Regional Science, Wiley Blackwell, vol. 40(2), pages 261-287, May.
    24. Riccardo Scarpa & Mara Thiene & Kenneth Train, 2008. "Utility in Willingness to Pay Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 994-1010.
    25. Sener, Ipek N. & Pendyala, Ram M. & Bhat, Chandra R., 2011. "Accommodating spatial correlation across choice alternatives in discrete choice models: an application to modeling residential location choice behavior," Journal of Transport Geography, Elsevier, vol. 19(2), pages 294-303.
    26. Jeff Bennett & Russell Blamey (ed.), 2001. "The Choice Modelling Approach to Environmental Valuation," Books, Edward Elgar Publishing, number 2028.
    27. Allenby, Greg M. & Rossi, Peter E., 1998. "Marketing models of consumer heterogeneity," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 57-78, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    2. David Throsby & Anita Zednik & Jorge E. Araña, 2021. "Public preferences for heritage conservation strategies: a choice modelling approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(3), pages 333-358, September.
    3. Collins, Jill P. & Vossler, Christian A., 2009. "Incentive compatibility tests of choice experiment value elicitation questions," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 226-235, September.
    4. Benoit Chèze & Charles Collet & Anthony Paris, 2021. "Estimating discrete choice experiments : theoretical fundamentals," CIRED Working Papers hal-03262187, HAL.
    5. Juutinen, Artti & Kosenius, Anna-Kaisa & Ovaskainen, Ville, 2014. "Estimating the benefits of recreation-oriented management in state-owned commercial forests in Finland: A choice experiment," Journal of Forest Economics, Elsevier, vol. 20(4), pages 396-412.
    6. Krueger, Rico & Rashidi, Taha H. & Vij, Akshay, 2020. "A Dirichlet process mixture model of discrete choice: Comparisons and a case study on preferences for shared automated vehicles," Journal of choice modelling, Elsevier, vol. 36(C).
    7. Dan Pan, 2016. "The Design of Policy Instruments towards Sustainable Livestock Production in China: An Application of the Choice Experiment Method," Sustainability, MDPI, vol. 8(7), pages 1-18, July.
    8. Thiene, Mara & Meyerhoff, Jürgen & De Salvo, Maria, 2012. "Scale and taste heterogeneity for forest biodiversity: Models of serial nonparticipation and their effects," Journal of Forest Economics, Elsevier, vol. 18(4), pages 355-369.
    9. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    10. Gillespie Rob & Kragt Marit E., 2012. "Accounting for Nonmarket Impacts in a Benefit-Cost Analysis of Underground Coal Mining in New South Wales, Australia," Journal of Benefit-Cost Analysis, De Gruyter, vol. 3(2), pages 1-29, May.
    11. De Ayala Bilbao, Amaya & Hoyos Ramos, David & Mariel Chladkova, Petr, 2012. "Landscape valuation through discrete choice experiments: Current practice and future research reflections," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    12. Japelj, Anže & Mavsar, Robert & Hodges, Donald & Kovač, Marko & Juvančič, Luka, 2016. "Latent preferences of residents regarding an urban forest recreation setting in Ljubljana, Slovenia," Forest Policy and Economics, Elsevier, vol. 71(C), pages 71-79.
    13. Akshay Vij & Rico Krueger, 2018. "Random taste heterogeneity in discrete choice models: Flexible nonparametric finite mixture distributions," Papers 1802.02299, arXiv.org.
    14. Vij, Akshay & Krueger, Rico, 2017. "Random taste heterogeneity in discrete choice models: Flexible nonparametric finite mixture distributions," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 76-101.
    15. Youssef M Aboutaleb & Mazen Danaf & Yifei Xie & Moshe Ben-Akiva, 2020. "Sparse Covariance Estimation in Logit Mixture Models," Papers 2001.05034, arXiv.org.
    16. Regier, Dean A. & Ryan, Mandy & Phimister, Euan & Marra, Carlo A., 2009. "Bayesian and classical estimation of mixed logit: An application to genetic testing," Journal of Health Economics, Elsevier, vol. 28(3), pages 598-610, May.
    17. de Ayala, Amaia & Hoyos, David & Mariel, Petr, 2015. "Suitability of discrete choice experiments for landscape management under the European Landscape Convention," Journal of Forest Economics, Elsevier, vol. 21(2), pages 79-96.
    18. Novikova, Anastasija & Rocchi, Lucia & Vitunskienė, Vlada, 2017. "Assessing the benefit of the agroecosystem services: Lithuanian preferences using a latent class approach," Land Use Policy, Elsevier, vol. 68(C), pages 277-286.
    19. Daniele Moro & Mario Veneziani & Paolo Sckokai & Elena Castellari, 2015. "Consumer Willingness to Pay for Catechin‐enriched Yogurt: Evidence from a Stated Choice Experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 243-258, April.
    20. Sckokai, Paolo & Veneziani, Mario & Moro, Daniele & Castellari, Elena, 2014. "Consumer willingness to pay for food safety: the case of mycotoxins in milk," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(1), pages 1-19, April.

    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:forpol:v:102:y:2019:i:c:p:1-9. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.