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Using discrete choice experiments for environmental valuation

  • Hoyos Ramos, David

This paper provides with a review of the state of the art of environmental valuation with discrete choice experiments (DCE). The growing body of literature on this field serves to emphasise the increasing role that DCE are playing in environmental decision making in the last decade. The paper attempts to cover the full process of undertaking a choice experiment, including survey and experimental design, econometric analysis of choice data and welfare analysis. The research on this field is found to be intense, although many challenges are put forward (e.g. choice task complexity and cognitive effort, experimental design, endogeneity or model uncertainty). Reviewing the state of the art of DCE serves to draw attention to the main challenges that this methodological approach will need to overcome in the coming years and to identify the frontiers in discrete choice analysis.

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File URL: http://hdl.handle.net/10810/5571
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Paper provided by Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística) in its series BILTOKI with number 2010-03.

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Date of creation: 2010
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Handle: RePEc:ehu:biltok:201003
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Order Information: Postal: Dpto. de Econometría y Estadística, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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