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Are non-use values distance-independent? Identifying the market area using a choice modelling experiment

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  • Giovanni B. Concu

    (Risk and Sustainable Management Group, University of Queensland)

Abstract

This article tests for the effect of distance on non-use values using a Choice Modelling (CM) experiment. Estimating a distance decay relationship for non-use values (NUVs) is important because it would define the market area for an environmental good, i.e. identify the limits for aggregating individual benefit estimates. In contrast to the common definition of NUVs as non-usersÕ values, the CM experiment designs the environmental attributes so that NUV changes can be disentangled from Use Value (UV) changes. The experiment also allows for testing different specification of the distance covariates. Data are obtained from a geographically representative sample. Results show that NUVs do not depend on distance. Aggregation of NUVs is based on income and individualsÕ environmental attitudes.

Suggested Citation

  • Giovanni B. Concu, 2005. "Are non-use values distance-independent? Identifying the market area using a choice modelling experiment," Murray-Darling Program Working Papers WP6M05, Risk and Sustainable Management Group, University of Queensland.
  • Handle: RePEc:rsm:murray:m05_6
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    File URL: http://www.uq.edu.au/rsmg/WP/WPM05_6.pdf
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    References listed on IDEAS

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    1. Richard Carson & Nicholas Flores & Norman Meade, 2001. "Contingent Valuation: Controversies and Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
    2. 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.
    3. 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.
    4. Garrod, G. D. & Willis, K. G., 1997. "The non-use benefits of enhancing forest biodiversity: A contingent ranking study," Ecological Economics, Elsevier, vol. 21(1), pages 45-61, April.
    5. 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.
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    Cited by:

    1. De Valck, Jeremy & Broekx, Steven & Liekens, Inge & Aertsens, Joris & Vranken, Liesbet, 2014. "Testing the influence of substitutes in nature valuation by using spatial discounting factors," Working Papers 182808, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.

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    More about this item

    Keywords

    choice modelling; non-use values; aggregation; distance; geographical sampling.;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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