IDEAS home Printed from https://ideas.repec.org/p/cns/cnscwp/200412.html
   My bibliography  Save this paper

A choice modelling approach to investigate biases in individual and aggregated benefit estimates due to omission of distance

Author

Listed:
  • G. Concu

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 aggregation and transfer of benefits. So far the problem has been analysed though the use of Contingent Valuation-type of experiments, producing mixed results. The experiment allows testing distance effects on parameters of environmental attributes that imply different trade-offs between use and non-use values. The distance covariate enters the estimated utility function in a flexible form to accommodate for several possible relationships. The sampling procedure is designed to provide a "geographically balanced" sample. 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

  • G. Concu, 2004. "A choice modelling approach to investigate biases in individual and aggregated benefit estimates due to omission of distance," Working Paper CRENoS 200412, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  • Handle: RePEc:cns:cnscwp:200412
    as

    Download full text from publisher

    File URL: http://crenos.unica.it/crenos/node/210
    Download Restriction: no

    File URL: http://crenos.unica.it/crenos/sites/default/files/wp/04-12.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ian Bateman & Ian Langford & Naohito Nishikawa & Iain Lake, 2000. "The Axford Debate Revisited: A Case Study Illustrating Different Approaches to the Aggregation of Benefits Data," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(2), pages 291-302.
    2. Richard A. Hofler & John A. List, 2004. "Valuation on the Frontier: Calibrating Actual and Hypothetical Statements of Value," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 213-221.
    3. Hadker, Nandini & Sharma, Sudhir & David, Ashish & Muraleedharan, T. R., 1997. "Willingness-to-pay for Borivli National Park: evidence from a Contingent Valuation," Ecological Economics, Elsevier, vol. 21(2), pages 105-122, May.
    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. Swait, Joffre & Adamowicz, Wiktor & Bueren, Martin van, 2004. "Choice and temporal welfare impacts: incorporating history into discrete choice models," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 94-116, January.
    6. 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.
    7. Amigues, Jean-Pierre & Boulatoff (Broadhead), Catherine & Desaigues, Brigitte & Gauthier, Caroline & Keith, John E., 2002. "The benefits and costs of riparian analysis habitat preservation: a willingness to accept/willingness to pay contingent valuation approach," Ecological Economics, Elsevier, vol. 43(1), pages 17-31, November.
    8. D M Hanink & K White, 1999. "Distance effects in the demand for wildland recreational services: the case of national parks in the United States," Environment and Planning A, Pion Ltd, London, vol. 31(3), pages 477-492, March.
    9. D M Hanink & K White, 1999. "Distance Effects in the Demand for Wildland Recreational Services: The Case of National Parks in the United States," Environment and Planning A, , vol. 31(3), pages 477-492, March.
    10. repec:cup:jagaec:v:33:y:2001:i:03:p:487-492_02 is not listed on IDEAS
    11. 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.
    12. Mary F. Evans & Nicholas E. Flores & Kevin J. Boyle, 2003. "Multiple-Bounded Uncertainty Choice Data as Probabilistic Intentions," Land Economics, University of Wisconsin Press, vol. 79(4), pages 549-560.
    13. G. Concu, 2004. "Effects of distance on non-use values," Working Paper CRENoS 200411, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    14. 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.
    15. 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.
    16. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
    17. 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.
    18. Keith, John E. & Fawson, Christopher & Johnson, Van, 1996. "Preservation or use A contingent valuation study of wilderness designation in Utah," Ecological Economics, Elsevier, vol. 18(3), pages 207-214, September.
    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. G. Concu, 2004. "Effects of distance on non-use values," Working Paper CRENoS 200411, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. G. Marletto, 2006. "La politica dei trasporti come politica per l'innovazione: spunti da un approccio evolutivo," Working Paper CRENoS 200605, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    3. OA Carboni & G. Medda, 2007. "Government Size and the Composition of Public Spending in a Neoclassical Growth Model," Working Paper CRENoS 200701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

    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:cns:cnscwp:200412. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonello Pau). General contact details of provider: http://edirc.repec.org/data/crenoit.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.