IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v67y2008i4p552-559.html
   My bibliography  Save this article

Willingness to accept compensation for the environmental risks of oil transport on the Amazon: A choice modeling experiment

Author

Listed:
  • Casey, James F.
  • Kahn, James R.
  • Rivas, Alexandre A.F.

Abstract

This paper looks at the question of whether subsistence level/indigenous people place a value on the preservation of ecosystems independent of direct impacts of environmental change, such as impacts on their production activities. The economics literature generally suggests that non-use values don't exist among the poor and in the informal sector of the economy. We examine this issue through a choice modeling experiment. A survey was conducted of rainforest communities who live on the banks of the Amazon River (Rio Solimões), in the vicinity of proposed oil and gas pipelines. The data were analyzed in the choice modeling framework, revealing relatively high amounts of compensation that were necessary in order to accept the potential ecosystem damages associated with oil transport, even if the people were completely compensated for direct damages such as loss of access to productive resources. These results suggest that environmental quality is important for its own sake, a result that is very different from the implicit assumption among many economists.

Suggested Citation

  • Casey, James F. & Kahn, James R. & Rivas, Alexandre A.F., 2008. "Willingness to accept compensation for the environmental risks of oil transport on the Amazon: A choice modeling experiment," Ecological Economics, Elsevier, vol. 67(4), pages 552-559, November.
    • Handle: RePEc:eee:ecolec:v:67:y:2008:i:4:p:552-559
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(08)00032-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stevens, Thomas H. & Barrett, Christopher B. & Willis, Cleve E., 1997. "Conjoint Analysis Of Groundwater Protection Programs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(2), pages 1-8, October.
    2. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
    3. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    4. Roe, Brian & Boyle, Kevin J. & Teisl, Mario F., 1996. "Using Conjoint Analysis to Derive Estimates of Compensating Variation," Journal of Environmental Economics and Management, Elsevier, vol. 31(2), pages 145-159, September.
    5. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    6. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, September.
    7. Rolfe, John & Bennett, Jeff & Louviere, Jordan, 2000. "Choice modelling and its potential application to tropical rainforest preservation," Ecological Economics, Elsevier, vol. 35(2), pages 289-302, November.
    8. Stevens, Thomas H. & Barrett, Christopher & Willis, Cleve E., 1997. "Conjoint Analysis of Groundwater Protection Programs," Agricultural and Resource Economics Review, Cambridge University Press, vol. 26(2), pages 229-236, October.
    9. Shrestha, Ram K. & Alavalapati, Janaki R. R., 2004. "Valuing environmental benefits of silvopasture practice: a case study of the Lake Okeechobee watershed in Florida," Ecological Economics, Elsevier, vol. 49(3), pages 349-359, July.
    10. Stephen K. Swallow & James J. Opaluch & Thomas F. Weaver, 1992. "Siting Noxious Facilities: An Approach That Integrates Technical, Economic, and Political Considerations," Land Economics, University of Wisconsin Press, vol. 68(3), pages 283-301.
    11. Chuan-zhong Li & Jari Kuuluvainen & Eija Pouta & Mika Rekola & Olli Tahvonen, 2004. "Using Choice Experiments to Value the Natura 2000 Nature Conservation Programs in Finland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(3), pages 361-374, November.
    12. Stevens, T. H. & Belkner, R. & Dennis, D. & Kittredge, D. & Willis, C., 2000. "Comparison of contingent valuation and conjoint analysis in ecosystem management," Ecological Economics, Elsevier, vol. 32(1), pages 63-74, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. del Saz Salazar, Salvador & Hernandez Sancho, Francesc & Sala Garrido, Ramon, 2009. "Estimación del valor económico de la calidad del agua de un río mediante una doble aproximación: una aplicación de los principios económicos de la Directiva Marco del Agua," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 9(01), pages 1-27.
    2. Oviedo, José L. & Caparrós, Alejandro, 2015. "Information and visual attention in contingent valuation and choice modeling: field and eye-tracking experiments applied to reforestations in Spain," Journal of Forest Economics, Elsevier, vol. 21(4), pages 185-204.
    3. Swallow, Stephen K. & Opaluch, James J. & Weaver, Thomas F., 2001. "Strength-of-Preference Indicators and an Ordered-Response Model for Ordinarily Dichotomous, Discrete Choice Data," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 70-93, January.
    4. repec:ebl:ecbull:v:17:y:2005:i:7:p:1-15 is not listed on IDEAS
    5. Milena Pavlova & Wim Groot & Godefridus Merode, 2005. "An Application of Rating Conjoint Analysis to Study the Importance of Quality-, Access- and Price-attributes to Health Care Consumers," Economic Change and Restructuring, Springer, vol. 37(3), pages 267-286, September.
    6. Mathews, Leah Greden & Kask, Susan B. & Stewart, Steve, 2004. "The Value Of The View: Valuing Scenic Quality Using Choice And Contingent Valuation Models," 2004 Annual meeting, August 1-4, Denver, CO 20049, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Chaikaew, Pasicha & Hodges, Alan W. & Grunwald, Sabine, 2017. "Estimating the value of ecosystem services in a mixed-use watershed: A choice experiment approach," Ecosystem Services, Elsevier, vol. 23(C), pages 228-237.
    8. Chunhua Wang & Changdong Zhang & Yong Wang, 2020. "Environmental satisfaction among residents in Chinese cities," Empirical Economics, Springer, vol. 59(5), pages 2283-2301, November.
    9. De Valck, Jeremy & Vlaeminck, Pieter & Liekens, Inge & Aertsens, Joris & Chen, Wendy & Vranken, Liesbet, 2012. "The sources of preference heterogeneity for nature restoration scenarios," Working Papers 146522, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    10. Rai, Rajesh Kumar & Scarborough, Helen, 2012. "Estimating the public benefits of mitigating damages caused by invasive plant species in a subsistence economy," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124421, Australian Agricultural and Resource Economics Society.
    11. Oliver Froer, 2003. "Using Stated Preference Methods for Biodiversity Valuation. A critical analysis," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 217/2003, Department of Economics, University of Hohenheim, Germany.
    12. Schmitz, Kim & Schmitz, P. Michael & Wronka, Tobias C., 2003. "Bewertung von Landschaftsfunktionen mit Choice Experiments," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(08), pages 1-11.
    13. Edward Morey & Kathleen Greer Rossmann, 2003. "Using Stated-Preference Questions to Investigate Variations in Willingness to Pay for Preserving Marble Monuments: Classic Heterogeneity, Random Parameters, and Mixture Models," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 215-229, November.
    14. Birol, Ekin & Koundouri, Phoebe, 2008. "Choice Experiments Informing Environmental Policy:A European Perspective," MPRA Paper 38232, University Library of Munich, Germany.
    15. Rossi, Frederick J. & Carter, Douglas R. & Alavalapati, Janaki R.R. & Nowak, John T., 2011. "Assessing landowner preferences for forest management practices to prevent the southern pine beetle: An attribute-based choice experiment approach," Forest Policy and Economics, Elsevier, vol. 13(4), pages 234-241, April.
    16. Rivas Palma, Rosa Maria & Manley, Bruce & Kerr, Geoffrey N., 2012. "Environmental and Social Values from Plantation Forests: A Study in New Zealand with Focus on the Hawke’s Bay Region," 2009 Conference, August 27-28, 2009, Nelson, New Zealand 136074, New Zealand Agricultural and Resource Economics Society.
    17. Jesús Barreiro-Hurlé & José Gómez-Limón, 2008. "Reconsidering Heterogeneity and Aggregation Issues in Environmental Valuation: A Multi-attribute Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(4), pages 551-570, August.
    18. Harrison, R. Wes & Gillespie, Jeffrey M. & Fields, Deacue, 2005. "Analysis of Cardinal and Ordinal Assumptions in Conjoint Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-15, October.
    19. Schlapfer, Felix, 2006. "Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis," Ecological Economics, Elsevier, vol. 57(3), pages 415-429, May.
    20. Jin, Jianjun & Wang, Zhishi & Ran, Shenghong, 2006. "Comparison of contingent valuation and choice experiment in solid waste management programs in Macao," Ecological Economics, Elsevier, vol. 57(3), pages 430-441, May.
    21. Haefele, Michelle A. & Loomis, John B., 1999. "A Comparison Of Conjoint Ratings And Rankings: An Application For Passive Use Values Of Forest Health," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35729, Western Agricultural Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:67:y:2008:i:4:p:552-559. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.