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Investigating Distance Effects on Environmental Values: A Choice Modelling Approach

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  • Concu, Giovanni B.

Abstract

This paper describes a Choice Modelling experiment set up to investigate the relationship between distance and willingness to pay for environmental quality changes. The issue is important for the estimation and transfer of benefits. The Choice Modelling experiment allows testing distance effects on parameters of environmental attributes that imply different trade-offs between use and non-use values. The sampling procedure is designed to provide a "geographically balanced" sample. Several specifications of the distance covariate are compared and distance effects are shown to take complex shapes. Welfare analysis shows that disregarding distance produces under-estimation of individual and aggregated benefits and losses, seriously hindering the reliability of cost-benefit analyses.

Suggested Citation

  • Concu, Giovanni B., 2006. "Investigating Distance Effects on Environmental Values: A Choice Modelling Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25566, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25566
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    References listed on IDEAS

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    Cited by:

    1. Carmelo J. León & Jorge E. Araña & Javier León & Matías M. González, 2016. "The Economic Benefits of Reducing the Environmental Effects of Landfills: Heterogeneous Distance Decay Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(1), pages 193-218, January.
    2. John Rolfe & Jill Windle, 2012. "Distance Decay Functions for Iconic Assets: Assessing National Values to Protect the Health of the Great Barrier Reef in Australia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(3), pages 347-365, November.
    3. Meyerhoff, Jürgen, 2013. "Do turbines in the vicinity of respondents' residences influence choices among programmes for future wind power generation?," Journal of choice modelling, Elsevier, vol. 7(C), pages 58-71.
    4. Rolfe, John & Windle, Jill, 2010. "Valuing environmental improvements in the Great Barrier Reef: Ecological and preference heterogeneity in local area case studies," Research Reports 95052, Australian National University, Environmental Economics Research Hub.
    5. Tait, Peter R. & Baskaran, Ramesh, 2011. "Incorporating Local Water Quality in Welfare Measures of Agri-environmental Policy: A Choice Modelling Approach Employing GIS," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116074, European Association of Agricultural Economists.
    6. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    7. Rolfe, John & Windle, Jill, 2012. "Testing benefit transfer of reef protection values between local case studies: The Great Barrier Reef in Australia," Ecological Economics, Elsevier, vol. 81(C), pages 60-69.
    8. Roberto Ponce & Felipe Vásquez & Alejandra Stehr & Patrick Debels & Carlos Orihuela, 2011. "Estimating the Economic Value of Landscape Losses Due to Flooding by Hydropower Plants in the Chilean Patagonia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(10), pages 2449-2466, August.
    9. Windle, Jill & Rolfe, John, 2013. "The limitations of applying benefit transfer to assess the value of ecosystem services in a “generic” peri-urban, coastal town in Australia," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152183, Australian Agricultural and Resource Economics Society.
    10. Jeremy Valck & Steven Broekx & Inge Liekens & Joris Aertsens & Liesbet Vranken, 2017. "Testing the Influence of Substitute Sites in Nature Valuation by Using Spatial Discounting Factors," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 17-43, January.
    11. repec:eee:jeeman:v:85:y:2017:i:c:p:110-129 is not listed on IDEAS
    12. Wiktor L. Adamowicz & Klaus Glenk & Jürgen Meyerhoff, 2014. "Choice modelling research in environmental and resource economics," Chapters,in: Handbook of Choice Modelling, chapter 27, pages 661-674 Edward Elgar Publishing.
    13. Schaafsma, Marije & Brouwer, Roy & Rose, John, 2012. "Directional heterogeneity in WTP models for environmental valuation," Ecological Economics, Elsevier, vol. 79(C), pages 21-31.
    14. Tait, Peter & Baskaran, Ramesh & Cullen, Ross & Bicknell, Kathryn, 2012. "Nonmarket valuation of water quality: Addressing spatially heterogeneous preferences using GIS and a random parameter logit model," Ecological Economics, Elsevier, vol. 75(C), pages 15-21.

    More about this item

    Keywords

    Aggregation; Choice Modelling; Distance; Geographical Sampling; Specification Tests; Environmental Economics and Policy; Q51; H4; D6.;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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