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Investigating Distance Effects on Environmental Values: A Choice Modelling Approach

Listed author(s):
  • Concu, Giovanni B.

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.

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File URL: http://purl.umn.edu/25566
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Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25566.

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Date of creation: 2006
Handle: RePEc:ags:iaae06:25566
Contact details of provider: Web page: http://www.iaae-agecon.org/
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  1. repec:cup:jagaec:v:33:y:2001:i:03:p:487-492_02 is not listed on IDEAS
  2. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
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  8. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
  9. Ian Bateman & Ian Langford, 1997. "Non-users' Willingness to Pay for a National Park: An Application and Critique of the Contingent Valuation Method," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 571-582.
  10. Yong Jiang & Stephen Swallow & Michael Mcgonagle, 2005. "Context-Sensitive Benefit Transfer Using Stated Choice Models: Specification and Convergent Validity for Policy Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(4), pages 477-499, August.
  11. Pate, Jennifer & Loomis, John, 1997. "The effect of distance on willingness to pay values: a case study of wetlands and salmon in California," Ecological Economics, Elsevier, vol. 20(3), pages 199-207, March.
  12. Boxall, Peter C. & Adamowicz, Wiktor L. & Swait, Joffre & Williams, Michael & Louviere, Jordan, 1996. "A comparison of stated preference methods for environmental valuation," Ecological Economics, Elsevier, vol. 18(3), pages 243-253, September.
  13. Ronald J. Sutherland & Richard G. Walsh, 1985. "Effect of Distance on the Preservation Value of Water Quality," Land Economics, University of Wisconsin Press, vol. 64(3), pages 281-291.
  14. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
  15. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
  16. Espey, Molly & Owusu-Edusei, Kwame, 2001. "Neighborhood Parks and Residential Property Values in Greenville, South Carolina," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(03), pages 487-492, December.
  17. Pearson, L. J. & Tisdell, C. & Lisle, A. T., 2002. "The Impact of Noosa National Park on Surrounding Property Values: An Application of the Hedonic Price Method," Economic Analysis and Policy, Elsevier, vol. 32(2), pages 155-171, June Spec.
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