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Uncertainty in Individuals' Preferences for Non-commodity Outputs Provided by Rural Development Programs (RDPs): A Contingent Valuation Approach

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  • Dominguez-Torreiro, Marcos
  • Solino, Mario

Abstract

Rural development programs (RDPs) are currently envisaged as a means to foster the provision of a broad range of non-commodity outputs emanating from multifunctional rural environments. This paper presents a Contingent Valuation survey that analyses individuals’ perceptions of and willingness to pay (WTP) for the implementation of a RDP in Cantabria, Spain. Uncertainty in individuals’ preferences is explicitly acknowledged and introduced into our analytical framework. For that purpose, a comparison is made between the open-ended (OE) and the multiple bounded uncertainty (MBU) elicitation formats. According to our behavioural model estimates, the expectation of a positive welfare change for both rural and urban dwellers constitutes a sound argument in favour of regional rural development policies.

Suggested Citation

  • Dominguez-Torreiro, Marcos & Solino, Mario, 2011. "Uncertainty in Individuals' Preferences for Non-commodity Outputs Provided by Rural Development Programs (RDPs): A Contingent Valuation Approach," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114437, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae11:114437
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    File URL: http://purl.umn.edu/114437
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    References listed on IDEAS

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    1. Jeff Connor & Kurt Schwabe & Darran King & David Kaczan & Mac Kirby, 2009. "Impacts of climate change on lower Murray irrigation ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 437-456, July.
    2. Ingham, Alan & Ma, Jie & Ulph, Alistair, 2007. "Climate change, mitigation and adaptation with uncertainty and learning," Energy Policy, Elsevier, vol. 35(11), pages 5354-5369, November.
    3. Heinemann, A. B. & Hoogenboom, G. & de Faria, R. T., 2002. "Determination of spatial water requirements at county and regional levels using crop models and GIS: An example for the State of Parana, Brazil," Agricultural Water Management, Elsevier, vol. 52(3), pages 177-196, January.
    4. Rinaldi, Michele, 2001. "Application of EPIC model for irrigation scheduling of sunflower in Southern Italy," Agricultural Water Management, Elsevier, vol. 49(3), pages 185-196, August.
    5. Cortignani, Raffaele & Dono, Gabriele & Doro, Luca & Ledda, Luigi & Mazzapicchio, Graziano, 2010. "An evaluation of the economic impact of Climate Change through a three-stages Discrete Stochastic Programming model," 120th Seminar, September 2-4, 2010, Chania, Crete 109317, European Association of Agricultural Economists.
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    More about this item

    Keywords

    rural development policy; non-commodity outputs; contingent valuation; elicitation formats; uncertainty; Agricultural and Food Policy; Q0; Q18; Q51; R0;

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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