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Incorporating Local Water Quality in Welfare Measures of Agri-environmental Policy: A Choice Modelling Approach Employing GIS

  • Tait, Peter R.
  • Baskaran, Ramesh

The spatial distribution of agro-environmental policy benefits has important implications for the efficient allocation of management effort. The practical convenience of relying on sample mean values of individual benefits for aggregation can come at the cost of biased aggregate estimates. The main objective of this paper is to test spatial hypotheses regarding respondents’ local water quality and quantity, and their willingness-to-pay for improvements in water quality attributes. This paper combines choice experiment and spatially related water quality data via a Geographical Information System (GIS) to develop a method that evaluates the influence of respondents’ local water quality on willingness-to-pay for river and stream conservation programs in Canterbury, New Zealand. Results show that those respondents who live in the vicinity of low quality waterway are willing to pay more for improvements relative to those who live near to high quality waterways.

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File URL: http://purl.umn.edu/116074
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Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 116074.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:116074
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  1. Mark Agee & Thomas Crocker, 2010. "Directional heterogeneity of environmental disamenities: the impact of crematory operations on adjacent residential values," Applied Economics, Taylor & Francis Journals, vol. 42(14), pages 1735-1745.
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  8. Danny Campbell & W George Hutchinson & Riccardo Scarpa, 2009. "Using choice experiments to explore the spatial distribution of willingness to pay for rural landscape improvements," Environment and Planning A, Pion Ltd, London, vol. 41(1), pages 97-111, January.
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  11. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December.
  12. Condon, Brian & Hodges, Alan W. & Matta, Rao, 2007. "Public Preferences and Values for Rural Land Preservation in Florida," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9857, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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