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

  • Giovanni B. Concu

    ()

    (Risk and Sustainable Management Group, University of Queensland)

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    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.

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    Paper provided by Risk and Sustainable Management Group, University of Queensland in its series Murray-Darling Program Working Papers with number WP6M05.

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    Date of creation: Dec 2005
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    Handle: RePEc:rsm:murray:m05_6
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