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Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements

Author

Listed:
  • Danny Campbell

    () (Queen’s University Belfast)

  • W. George Hutchinson

    () (Queen’s University Belfast)

  • Riccardo Scarpa

    () (University of Waikato)

Abstract

We report findings from a choice experiment survey designed to estimate the economic benefits from policy measures which improve the rural landscape under an agri-environment scheme in the Republic of Ireland. Using a panel mixed logit specification to account for unobserved taste heterogeneity we derive individual- specific willingness to pay estimates for each respondent in the sample. We subsequently investigate the existence of spatial dependence of these estimates. Results suggest the existence of positive spatial autocorrelation for all rural landscape attributes. As a means of benefit transfer, kriging methods are employed to interpolate willingness to pay estimates across the whole of the Republic of Ireland. The kriged WTP surfaces confirm the existence of spatial dependence and illustrate the implied spatial variation and regional disparities in WTP for all the rural landscape improvements.

Suggested Citation

  • Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2007. "Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements," Working Papers in Economics 07/06, University of Waikato.
  • Handle: RePEc:wai:econwp:07/06
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    Keywords

    landscape valuation; spatial distribution; choice experiments; non-market valuation;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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