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Comparing choice models of river health improvement for the Goulburn River


  • Kragt, Marit Ellen
  • Bennett, Jeffrey W.
  • Lloyd, Chris
  • Dumsday, Robert G.


The extent of the benefits of improved river health remain uncertain. Quantifying these benefits is useful in prioritising policy investments. This study uses the Choice Modelling technique to estimate the value that households attach to attributes of improved river health. Data from a choice modelling survey supported by DSE Victoria are employed to elicit household preferences in a case study of the Goulburn River. Results from conditional and nested logit model specifications indicate that respondents hold positive values for higher levels of fish and bird populations and for increasing riverside vegetation. The standard Hausman test for Independence-from-Irrelevant-Alternatives (IIA) assumptions violations is found to give inconsistent results. The value estimates of the conditional and nested logit models are shown to be statistically similar indicating that testing for IIA violation may be more complicated than currently assumed thus raising questions about the efficacy of the more complex nested logit model.

Suggested Citation

  • Kragt, Marit Ellen & Bennett, Jeffrey W. & Lloyd, Chris & Dumsday, Robert G., 2007. "Comparing choice models of river health improvement for the Goulburn River," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10359, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare07:10359

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    Cited by:

    1. John Rolfe & Roy Brouwer, 2011. "Testing for value stability with a meta-analysis of choice experiments: River health in Australia," Environmental Economics Research Hub Research Reports 1095, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    2. Roy Brouwer, 2009. "Multi-Attribute Choice Modeling of Australia’s Rivers and Wetlands: A Meta-Analysis of Ten Years of Research," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-05, CSIRO Sustainable Ecosystems.
    3. repec:eee:ecolec:v:144:y:2018:i:c:p:65-72 is not listed on IDEAS
    4. Rolfe, John & Brouwer, Roy, 2011. "Testing for value stability with a meta-analysis of choice experiments: River health in Australia," Research Reports 107744, Australian National University, Environmental Economics Research Hub.

    More about this item


    Cheap talk; choice modelling; Mekong River Delta; wetland values; willingness to pay; Resource /Energy Economics and Policy; Q25;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water


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