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Spatial clustering of willingness to pay for ecosystem services

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  • Valeria M. Toledo‐Gallegos
  • Jed Long
  • Danny Campbell
  • Tobias Börger
  • Nick Hanley

Abstract

Variations of willingness to pay (WTP) in geographical space have been characterised by the presence of localised patches of higher and lower values. However, to date, spatial valuation studies have not explored whether the distribution of hot (cold) spots of WTP is particular to each environmental good or if it follows similar patterns to other, comparable, environmental goods. We address this question by contrasting the spatial patterns of hot (cold) clusters of WTP for improvements in several ecosystem services. We geocoded individual‐specific WTP estimates derived from a discrete choice experiment exploring preferences for ecosystem service improvements for three different catchment areas in Scotland comprising urban, agricultural, riverine and estuarine ecosystems. The local Moran's I statistic was used to find statistically significant local clusters and identify hot spots and cold spots. Finally, Multi‐type Ripley's K and L functions were used to contrast the spatial patterns of local clusters of WTP among ecosystem services, and across case studies. Our results show that hotspots of WTP for environmental improvements tend to occur close to each other in space, regardless of the ecosystem service or the area under consideration. Our findings suggest that households sort themselves according to their preferences for estuarine ecosystem services.

Suggested Citation

  • Valeria M. Toledo‐Gallegos & Jed Long & Danny Campbell & Tobias Börger & Nick Hanley, 2021. "Spatial clustering of willingness to pay for ecosystem services," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 673-697, September.
    • Handle: RePEc:bla:jageco:v:72:y:2021:i:3:p:673-697
    DOI: 10.1111/1477-9552.12428
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    1. Shinsuke Kyoi, 2021. "People’s Avoidance of Neighboring Agricultural Urban Green Infrastructure: Evidence from a Choice Experiment," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    2. Romain Crastes dit Sourd, 2024. "A new empirical approach for mitigating exploding implicit prices in mixed multinomial logit models," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 76-95, January.
    3. Hualin Xie & Zhenhong Zhu & Zhe Li, 2022. "Spatial Divergence Analysis of Ecosystem Service Value in Hilly Mountainous Areas: A Case Study of Ruijin City," Land, MDPI, vol. 11(6), pages 1-17, May.
    4. Toledo-Gallegos, Valeria M. & My, Nguyen H.D. & Tuan, Tran Huu & Börger, Tobias, 2022. "Valuing ecosystem services and disservices of blue/green infrastructure. Evidence from a choice experiment in Vietnam," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 114-128.

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