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Spatial heterogeneity of willingness to pay for forest management

Listed author(s):
  • Mikolaj Czajkowski

    ()

    (University of Warsaw, Department of Economic Sciences, Poland)

  • Wiktor Budzinski

    ()

    (University of Warsaw, Department of Economic Sciences, Poland)

  • Danny Campbell

    ()

    (University of Stirling, Stirling Management School, Economics Division, UK)

  • Marek Giergiczny

    ()

    (University of Warsaw, Department of Economic Sciences, Poland)

  • Nick Hanley

    ()

    (Department of Geography and Sustainable Development, University of St. Andrews)

The paper investigates spatial heterogeneity of the public’s preferences for the implementation of a new country-wide forest management and protection program in Poland. Spatial econometric methods and high resolution geographical information system (GIS) data related to forest characteristics are used to explain individual-specific willingness to pay (WTP) values, derived from a discrete choice experiment (DCE) study. We find that respondents’ WTP is higher the closer they live to their nearest forest, and the scarcer forests are in the area where they live. Interestingly, the more highly ecologically valuable forests in respondents’ area, the more they prefer extending areas of national forest protection. In addition, we investigate spatial patterns in individual-specific WTP scores and in latent class membership probabilities, finding that preferences are indeed spatially clustered. We argue that this clustering should be taken into account in both benefits analysis and policy-making.

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File URL: http://www.st-andrews.ac.uk/media/dept-of-geography-and-sustainable-development/pdf-s/DP%202015%2007%20Czajkowski%20et%20al.pdf
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Paper provided by University of St. Andrews, School of Geography and Sustainable Development in its series Discussion Papers in Environment and Development Economics with number 2015-07.

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Length: 31 pages
Date of creation: Feb 2015
Handle: RePEc:sss:wpaper:2015-07
Contact details of provider: Web page: http://www.st-andrews.ac.uk/gsd/research/envecon/

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  1. Timmins, Christopher & Murdock, Jennifer, 2007. "A revealed preference approach to the measurement of congestion in travel cost models," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 230-249, March.
  2. Danny Campbell & W George Hutchinson & Riccardo Scarpa, 2009. "Using choice experiments to explore the spatial distribution of willingness to pay for rural landscape improvements," Environment and Planning A, Pion Ltd, London, vol. 41(1), pages 97-111, January.
  3. Mikolaj Czajkowski & Marek Giergiczny & William H. Greene, 2014. "Learning and Fatigue Effects Revisited: Investigating the Effects of Accounting for Unobservable Preference and Scale Heterogeneity," Land Economics, University of Wisconsin Press, vol. 90(2), pages 324-351.
  4. Broch, Stine Wamberg & Strange, Niels & Jacobsen, Jette B. & Wilson, Kerrie A., 2013. "Farmers' willingness to provide ecosystem services and effects of their spatial distribution," Ecological Economics, Elsevier, vol. 92(C), pages 78-86.
  5. Czajkowski, Mikołaj & Bartczak, Anna & Giergiczny, Marek & Navrud, Stale & Żylicz, Tomasz, 2014. "Providing preference-based support for forest ecosystem service management," Forest Policy and Economics, Elsevier, vol. 39(C), pages 1-12.
  6. Jørgensen, Sisse Liv & Olsen, Søren Bøye & Ladenburg, Jacob & Martinsen, Louise & Svenningsen, Stig Roar & Hasler, Berit, 2013. "Spatially induced disparities in users' and non-users' WTP for water quality improvements—Testing the effect of multiple substitutes and distance decay," Ecological Economics, Elsevier, vol. 92(C), pages 58-66.
  7. Abildtrup, Jens & Garcia, Serge & Olsen, Søren Bøye & Stenger, Anne, 2013. "Spatial preference heterogeneity in forest recreation," Ecological Economics, Elsevier, vol. 92(C), pages 67-77.
  8. I. Bateman & R. Brouwer & S. Ferrini & M. Schaafsma & D. Barton & A. Dubgaard & B. Hasler & S. Hime & I. Liekens & S. Navrud & L. De Nocker & R. Ščeponavičiūtė & D. Semėnienė, 2011. "Making Benefit Transfers Work: Deriving and Testing Principles for Value Transfers for Similar and Dissimilar Sites Using a Case Study of the Non-Market Benefits of Water Quality Improvements Across E," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(3), pages 365-387, November.
  9. Danny Campbell, 2007. "Willingness to Pay for Rural Landscape Improvements: Combining Mixed Logit and Random-Effects Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 467-483, 09.
  10. Termansen, Mette & Zandersen, Marianne & McClean, Colin J., 2008. "Spatial substitution patterns in forest recreation," Regional Science and Urban Economics, Elsevier, vol. 38(1), pages 81-97, January.
  11. Guy Garrod & Ken Willis, 1992. "The amenity value of woodland in Great Britain: A comparison of economic estimates," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(4), pages 415-434, July.
  12. Yao, Richard T. & Scarpa, Riccardo & Turner, James A. & Barnard, Tim D. & Rose, John M. & Palma, João H.N. & Harrison, Duncan R., 2014. "Valuing biodiversity enhancement in New Zealand's planted forests: Socioeconomic and spatial determinants of willingness-to-pay," Ecological Economics, Elsevier, vol. 98(C), pages 90-101.
  13. Nick Hanley & W. Douglass Shaw & Robert E. Wright (ed.), 2003. "The New Economics of Outdoor Recreation," Books, Edward Elgar Publishing, number 2712.
  14. Felix Schläpfer & Nick Hanley, 2003. "Do Local Landscape Patterns Affect the Demand for Landscape Amenities Protection?," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 21-34.
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