IDEAS home Printed from https://ideas.repec.org/p/ags/ualbpr/24036.html
   My bibliography  Save this paper

Measuring Forest Resource Values: An Assessment Of Choice Experiments And Preference Construction Methods As Public Involvement Tools

Author

Listed:
  • Shapansky, Bradford
  • Adamowicz, Wiktor L.
  • Boxall, Peter C.

Abstract

Human values arising from forests include market and non-market values. Timber values and values of non-timber forest products traded in markets (berries, wild rice, etc.) are considered market values. Among non-market values are recreation values and values associated with wildlife harvesting by Aboriginal People. These are considered non-market because participation in these activities does not require the purchase of market based permits; prices do not function as rationing devices in these activities. In addition to non-market values arising from activities, individuals may also have values associated with forest conditions (biodiversity, etc.). These are referred to as passive use values since the value is not associated with any specific use of the resource or activity related to the forest. Since forests in Canada are largely on public land, these passive use values are particularly relevant to Canadian forest management. These values reveal the preferences of the public for components of forest management. Eliciting these values is a form of public involvement in that the public is engaged in assessing forest management options and providing opinions and sentiments regarding these options. Ideally, values arising from forests would be collected from a broad range of the public and examined to provide guidance to forest managers. However, values over forest outputs and conditions may be very poorly formed when people have little experience with the range and complexity of forest ecology and management. In addition, eliciting values without framing them in a trade-off setting can result in misleading estimates. In this project we attempt to elicit passive use values in a manner that allows for poorly defined initial notions of value through an approach known as preference construction. Preference construction essentially provides for education and information processing in the development of passive use values. These estimates are also developed using a trade-off approach (choice experiments). The project focuses on the values of the local public within the NorSask forest. More formally, the objectives of this research are to: 1) ascertain the passive use values held by local people associated with forests in the NorSask Forest Management License Area; 2) explore differences in preferences based on the degree and frequency of formal preference construction exercises; and 3) evaluate this approach as a method of public involvement. A total of 43 individuals from the local community were involved in the valuation exercise. They participated in 3 groups or treatments, each with a different level of involvement in the valuation assessment. The first group was involved in three separate sessions, allowing for significant preference construction and information acquisition. The second group was involved in only one session and the third group was involved only minimally through a telephone contact and the completion of a survey delivered through the mail. The hypothesis being examined was that the degree of involvement in the exercise would affect the responses either in terms of the variances of the responses or the actual preferences. Not all forest values can be examined in a single valuation task. In this case values associated with key game species (moose), wildlife species reflecting biodiversity or threatened species (caribou), old age classes of forest, protected areas and local employment were assessed. These were selected based on the preference construction sessions with the first group. A general trend was found in the ranking of forest values. The values were highest for increases in older forest age classes and protected areas and lower for caribou and moose levels (expressed in percentage changes relative to current levels). The lowest value arose from the local jobs generated by forestry activity. Monetary measures of these values were also developed. The scenario choices made by the individuals revealed that a 5% increase in moose and caribou populations would be worth approximately $10 and $12 per year. A 5% increases in old age classes or protected areas was worth approximately 4 to 5 times as much. They were willing to pay approximately $7 per year in increased taxes for increases in local employment. The hypothesis that the group preferences would differ was not accepted. The preferences of the first and third groups, while expected to be very different, were in fact quite similar. The second group did appear to be different from these other two but it is possible that significant variation in demographic characteristics was driving that difference, rather than the level of preference construction effort. The sample in the third group did however exhibit more resistance to completing the exercise and registered more protests to the value assessment. In conclusion, the approach employed was successful in eliciting passive use values for components of forest management. These values alone provide interesting information for managers to consider in the development of management plans. Evidence supporting the hypothesis that preference construction approaches improve these valuation exercises was not found in this study although this result must be tempered by the limitations arising from sample size and demographic composition of the study groups.

Suggested Citation

  • Shapansky, Bradford & Adamowicz, Wiktor L. & Boxall, Peter C., 2002. "Measuring Forest Resource Values: An Assessment Of Choice Experiments And Preference Construction Methods As Public Involvement Tools," Project Report Series 24036, University of Alberta, Department of Resource Economics and Environmental Sociology.
  • Handle: RePEc:ags:ualbpr:24036
    DOI: 10.22004/ag.econ.24036
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/24036/files/pr020003.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.24036?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    2. McDaniels, Timothy L. & Roessler, Craig, 1998. "Multiattribute elicitation of wilderness preservation benefits: a constructive approach," Ecological Economics, Elsevier, vol. 27(3), pages 299-312, December.
    3. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
    4. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
    5. John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June.
    6. Fischhoff, Baruch & Furby, Lita, 1988. "Measuring Values: A Conceptual Framework for Interpreting Transactions with Special Reference to Contingent Valuation of Visibility," Journal of Risk and Uncertainty, Springer, vol. 1(2), pages 147-184, June.
    7. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    8. Ralph L. Keeney & Detlof von Winterfeldt & Thomas Eppel, 1990. "Eliciting Public Values for Complex Policy Decisions," Management Science, INFORMS, vol. 36(9), pages 1011-1030, September.
    9. Robin Gregory & Sarah Lichtenstein & Thomas C. Brown & George L. Peterson & Paul Slovic, 1995. "How Precise Are Monetary Representations of Environmental Improvements?," Land Economics, University of Wisconsin Press, vol. 71(4), pages 462-473.
    10. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    11. Gregory, Robin & Slovic, Paul, 1997. "A constructive approach to environmental valuation," Ecological Economics, Elsevier, vol. 21(3), pages 175-181, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. MacMillan, Douglas & Hanley, Nick & Lienhoop, Nele, 2006. "Contingent valuation: Environmental polling or preference engine?," Ecological Economics, Elsevier, vol. 60(1), pages 299-307, November.
    2. Shapansky, Bradford & Adamowicz, Wiktor L. & Boxall, Peter C., 2008. "Assessing information provision and respondent involvement effects on preferences," Ecological Economics, Elsevier, vol. 65(3), pages 626-635, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shapansky, Bradford & Adamowicz, Wiktor L. & Boxall, Peter C., 2008. "Assessing information provision and respondent involvement effects on preferences," Ecological Economics, Elsevier, vol. 65(3), pages 626-635, April.
    2. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-26.
    3. Adam Finn & Stuart McFadyen & Colin Hoskins, 2003. "Valuing the Canadian Broadcasting Corporation," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 177-192, November.
    4. Onyango, Benjamin M. & Govindasamy, Ramu & Nayga, Rodolfo M., Jr., 2004. "Measuring U.S. Consumer Preferences For Genetically Modified Foods Using Choice Modeling Experiments: The Role Of Price, Product Benefits And Technology," Research Reports 18181, Rutgers University, Food Policy Institute.
    5. Catherine L. Kling & Daniel J. Phaneuf & Jinhua Zhao, 2012. "From Exxon to BP: Has Some Number Become Better Than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 3-26, Fall.
    6. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    7. José Miguel Sánchez U., 2013. "Contingent valuation and choice experiments applied to the Sierra Nevada National Park in Venezuela," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 38(35), pages 57-100, January-J.
    8. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    9. Mandy Ryan & Verity Watson, 2009. "Comparing welfare estimates from payment card contingent valuation and discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 389-401, April.
    10. Chuan-zhong Li & Jari Kuuluvainen & Eija Pouta & Mika Rekola & Olli Tahvonen, 2004. "Using Choice Experiments to Value the Natura 2000 Nature Conservation Programs in Finland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(3), pages 361-374, November.
    11. Onyango, Benjamin M. & Govindasamy, Ramu & Nayga, Rodolfo M., Jr., 2004. "An Application Of Choice Modeling To Measure U.S. Consumer Preferences For Genetically Modified Foods," 2004 Annual meeting, August 1-4, Denver, CO 19964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. repec:ken:wpaper:0805 is not listed on IDEAS
    13. Steiner, Bodo E. & Srivastava, Lorie & Gao, Fei, 2007. "Assessing the Consumer Acceptance and Market Potential of Alternative Meats," Project Report Series 7708, University of Alberta, Department of Resource Economics and Environmental Sociology.
    14. Jonathan E. Alevy & John A. List & Wiktor L. Adamowicz, 2011. "How Can Behavioral Economics Inform Nonmarket Valuation? An Example from the Preference Reversal Literature," Land Economics, University of Wisconsin Press, vol. 87(3), pages 365-381.
    15. Rideout, Douglas B. & Ziesler, Pamela S. & Kling, Robert & Loomis, John B. & Botti, Stephen J., 2008. "Estimating rates of substitution for protecting values at risk for initial attack planning and budgeting," Forest Policy and Economics, Elsevier, vol. 10(4), pages 205-219, February.
    16. Vivien Foster & Susana Mourato, 2003. "Elicitation Format and Sensitivity to Scope," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 141-160, February.
    17. Schmitz, Kim & Schmitz, P. Michael & Wronka, Tobias C., 2003. "Bewertung von Landschaftsfunktionen mit Choice Experiments," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(08), pages 1-11.
    18. Rinaldo Brau & D. Cao, 2005. "Uncovering the macrostructure of tourists' preferences. A choice experiment analysis of tourism demand to Sardinia," Working Paper CRENoS 200514, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    19. Sahan T. M. Dissanayake & Amy W. Ando, 2014. "Valuing Grassland Restoration: Proximity to Substitutes and Trade-offs among Conservation Attributes," Land Economics, University of Wisconsin Press, vol. 90(2), pages 237-259.
    20. Niroomand, Naghmeh & Jenkins, Glenn P., 2018. "A comparison of stated preference methods for the valuation of improvement in road safety," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 138-149.
    21. Colombo, Sergio & Hanley, Nick, 2007. "What Determines Prediction Errors In "Benefits Transfer" Models?," 81st Annual Conference, April 2-4, 2007, Reading University, UK 7967, Agricultural Economics Society.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ualbpr:24036. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/drualca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.