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Willingness to Pay for Environmental Improvements in a Large City Evidence from The Spike Model and From a Non-Parametric Approach

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  • Salvador Del Saz-Salazar
  • Leandro Garcia-Menendez

Abstract

In this paper, the Contingent Valuation Method (CVM) is applied in order toestimate the social benefits of a set of environmental and urbanimprovements planned for the waterfront of the City of Valencia (Spain) asa consequence of the expansion and restructuring of its trading port. Asthe data show a high rate of zero responses, we applied the Spike model,one of the most recent models in CVM literature, since traditional models(Logit and Probit) are not suitable, given the characteristics of our data.The non-parametric approach is also applied in order to test the validity ofthe Spike model. The results show certain similarities between the Spikemodel and the non-parametric approach. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Salvador Del Saz-Salazar & Leandro Garcia-Menendez, 2001. "Willingness to Pay for Environmental Improvements in a Large City Evidence from The Spike Model and From a Non-Parametric Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 103-112, October.
    • Handle: RePEc:kap:enreec:v:20:y:2001:i:2:p:103-112
    DOI: 10.1023/A:1012624211878
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    2. Pere Riera & Raúl Brey & Guillermo Gándara, 2008. "Bid design for non-parametric contingent valuation with a single bounded dichotomous choice format," Hacienda Pública Española / Review of Public Economics, IEF, vol. 186(3), pages 43-60, October.
    3. Loureiro, Maria L. & Loomis, John B. & Nahuelhual, Laura, 2004. "A comparison of a parametric and a non-parametric method to value a non-rejectable public good," Journal of Forest Economics, Elsevier, vol. 10(2), pages 61-74, September.
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    7. Juan Ignacio Pulido-Fernández & Yaiza López-Sánchez, 2016. "Are Tourists Really Willing to Pay More for Sustainable Destinations?," Sustainability, MDPI, vol. 8(12), pages 1-20, November.
    8. Jou, Rong-Chang & Huang, Guei-Lang, 2014. "Willingness to pay price for tolls and on-board units for short-distance freeway users who normally avoid toll boots," Transport Policy, Elsevier, vol. 31(C), pages 10-18.
    9. Jou, Rong-Chang & Chiou, Yu-Chiun & Chen, Ke-Hong & Tan, Hao-I, 2012. "Freeway drivers’ willingness-to-pay for a distance-based toll rate," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 549-559.
    10. Ovaskainen, Ville & Kniivila, Matleena, 2005. "Consumer versus citizen preferences in contingent valuation: evidence on the role of question framing," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-16.
    11. Laura Nahuelhual-Muñoz & Maria Loureiro & John Loomis, 2004. "Addressing Heterogeneous Preferences Using Parametric Extended Spike Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(3), pages 297-311, March.

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