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Heterogeneous preferences for marine amenities: A choice experiment applied to water quality

Author

Listed:
  • Eggert, Håkan

    () (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Olsson, Björn

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

The marine environment provides many goods and services dependent upon the quality of coastal waters. In this paper, we represent water quality by three different attributes, fish stock level, bathing water quality, and biodiversity level, and carry out a choice experiment among residents on the Swedish west coast to estimate the economic benefits of improved coastal water quality. We analyze data using the mixed multinomial logit model and explore various distributional assumptions and derive individual-specific parameters. Our results confirm heterogeneous preferences for these attributes and show that respondents have high levels of environmental concern and that substantial values are at stake. The most urgent action according to our findings is firstly to prevent further depletion of marine biodiversity and secondly to improve Swedish cod stocks.

Suggested Citation

  • Eggert, Håkan & Olsson, Björn, 2004. "Heterogeneous preferences for marine amenities: A choice experiment applied to water quality," Working Papers in Economics 126, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0126
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    File URL: http://hdl.handle.net/2077/2834
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    References listed on IDEAS

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    Cited by:

    1. Bertram, Christine & Rehdanz, Katrin, 2013. "On the environmental effectiveness of the EU Marine Strategy Framework Directive," Marine Policy, Elsevier, pages 25-40.
    2. Ghermandi, Andrea & Nunes, Paulo A.L.D., 2013. "A global map of coastal recreation values: Results from a spatially explicit meta-analysis," Ecological Economics, Elsevier, vol. 86(C), pages 1-15.
    3. Paudel, Krishna P. & Caffey, Rex H. & Devkota, Nirmala, 2011. "An Evaluation of Factors Affecting the Choice of Coastal Recreational Activities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(02), May.
    4. Taylor, Tim & Longo, Alberto, 2009. "Valuation of Marine Ecosystem Threshold Effects:Application of Choice Experiments to Value Algal Bloom in the Black Sea Coast of Bulgaria," Department of Economics Working Papers 15971, University of Bath, Department of Economics.
    5. Bastone, Chris & Stewart-Carbines, Megan & Kerr, Geoffrey N. & Sharp, Basil M.H. & Meister, Anton D., 2010. "Understanding values associated with stormwater remediation options in marine coastal ecosystems: A case study from Auckland, New Zealand," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59578, Australian Agricultural and Resource Economics Society.
    6. Beharry-Borg, Nesha & Scarpa, Riccardo, 2010. "Valuing quality changes in Caribbean coastal waters for heterogeneous beach visitors," Ecological Economics, Elsevier, vol. 69(5), pages 1124-1139, March.

    More about this item

    Keywords

    choice experiments; mixed logit; stated preference; water quality;

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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