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Mapping preferences for the restoration of environmental damage caused by illegal dumping

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Author Info
Campbell, Danny
Sinclair, Victoria

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Abstract

In this paper we use a discrete choice experiment to elicit the economic benefits associated with restoring environmental damage caused by illegal dumping activities. Our study focuses on an extensive rural upland area close to Belfast, where illegal dumping activities are prevalent. Using a random parameters logit model to account for unobserved taste heterogeneity, we exploit the panel nature of the dataset to retrieve partworths, or willingness to pay (WTP) values, for every individual in the sample. We subsequently investigate the existence of spatial dependence of these estimates. As a means of benefit transfer, we also employ geostatistical methods to extend across the whole of the study area the WTP estimates derived from the collected data. The resulting data are mapped and used to illustrate the implied spatial variation and local disparities in WTP for the different approaches used to restore the environmental damage caused by illegal dumping. The geographical mapping of the results is shown to add considerably more explanatory power to the welfare estimates derived from the discrete choice experiment.

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Paper provided by Agricultural Economics Society in its series 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK with number 36772.

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Date of creation: 31 Mar 2008
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Handle: RePEc:ags:aes008:36772

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Related research
Keywords: discrete choice experiments; environmental restoration; geostatistical analysis; random parameters logit; spatial dependence; illegal dumping; willingness to pay; C25; Q51; Q53;

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  1. David A Hensher & William H Greene & John M Rose, 2006. "Deriving willingness-to-pay estimates of travel-time savings from individual-based parameters," Environment and Planning A, Pion Ltd, London, vol. 38(12), pages 2365-2376, December. [Downloadable!] (restricted)
  2. Robert J. Johnston & RStephen K. Swallow & Dana Marie Bauer, 2002. "Spatial Factors and Stated Preference Values for Public Goods: Considerations for Rural Land Use," Land Economics, University of Wisconsin Press, vol. 78(4), pages 481-500. [Downloadable!] (restricted)
  3. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December. [Downloadable!] (restricted)
  4. Luc Anselin & Julie Le Gallo, 2006. "Interpolation of Air Quality Measures in Hedonic House Price Models: Spatial Aspects," Spatial Economic Analysis, Taylor and Francis Journals, vol. 1(1), pages 31-52, June. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Bhat, Chandra R., 2001. "Quasi-random maximum simulated likelihood estimation of the mixed multinomial logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 677-693, August. [Downloadable!] (restricted)
  7. Bhat, Chandra R., 2003. "Simulation estimation of mixed discrete choice models using randomized and scrambled Halton sequences," Transportation Research Part B: Methodological, Elsevier, vol. 37(9), pages 837-855, November. [Downloadable!] (restricted)
  8. Train, K. & Weeks, M., 2004. "Discrete Choice Models in Preference Space and Willingness-to Pay Space," Cambridge Working Papers in Economics 0443, Faculty of Economics, University of Cambridge. [Downloadable!]
  9. I.J. Bateman & A.P. Jones & A.A. Lovett & I.R. Lake & B.H. Day, 2002. "Applying Geographical Information Systems (GIS) to Environmental and Resource Economics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 219-269, June. [Downloadable!] (restricted)
  10. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470. [Downloadable!]
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