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Valuing the Benefits of Coastal Water Quality Improvements Using Contingent and Real Behaviour

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  • Nick Hanley
  • David Bell
  • Begona Alvarez-Farizo

Abstract

Recent moves in the European Union have beenmade towards a toughening of legislation onbathing water quality. This has focussedpolicy-makers thoughts on the welfare benefitsresulting from such improvements, especiallygiven their cost. Our paper uses a combinedstated and revealed preference approach tovalue coastal water quality improvements,focussing on an area of Scotland which hasconsistently failed to meet standards under theBathing Waters Directive. We combine data onreal behaviour with data on contingentbehaviour using a random effects negativebinomial panel model. This allows us to predictboth the change in participation (trips) shouldwater quality be improved, and the welfareincrease per trip. Our model includes allowancefor the existence of substitute sites, and forchanges in recreational behaviour during abeach visit. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Nick Hanley & David Bell & Begona Alvarez-Farizo, 2003. "Valuing the Benefits of Coastal Water Quality Improvements Using Contingent and Real Behaviour," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(3), pages 273-285, March.
    • Handle: RePEc:kap:enreec:v:24:y:2003:i:3:p:273-285
    DOI: 10.1023/A:1022904706306
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    References listed on IDEAS

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    1. Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January.
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    3. W. Douglass Shaw, 2002. "Testing the Validity of Contingent Behavior Trip Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 401-414.
    4. W. Douglass Shaw & Peter Feather, 1999. "Possibilities for Including the Opportunity Cost of Time in Recreation Demand Systems," Land Economics, University of Wisconsin Press, vol. 75(4), pages 592-602.
    5. Englin, Jeffrey & Lambert, David & Shaw, W. Douglass, 1997. "A Structural Equations Approach to Modeling Consumptive Recreation Demand," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 33-43, May.
    6. S Georgiou & I H Langford & I J Bateman & R K Turner, 1998. "Determinants of Individuals' Willingness to Pay for Perceived Reductions in Environmental Health Risks: A Case Study of Bathing Water Quality," Environment and Planning A, , vol. 30(4), pages 577-594, April.
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