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Preferences for Mitigation of the Negative Impacts of the Oil and Gas Industry in the Niger Delta Region of Nigeria

Author

Listed:
  • I. G. Ukpong

    (University of Reading)

  • K. G. Balcombe

    (University of Reading)

  • I. M. Fraser

    (University of Kent)

  • F. J. Areal

    (University of Reading)

Abstract

We examine Nigerian preferences for the mitigation of negative impacts associated with oil and gas production using a discrete choice experiment. We analyse the data using a Bayesian ‘infinite mixtures’ model, which given its flexibility can approximate an array of existing model specifications including the mixed logit and finite mixture specifications. The application of this model to our data suggest multimodality in the marginal willingness to pay distributions associated with mitigation policy characteristics. Individuals are willing to pay for mitigation of negative impacts, but are not necessarily willing to trade-off very large increases in unemployment or poverty to achieve these benefits.

Suggested Citation

  • I. G. Ukpong & K. G. Balcombe & I. M. Fraser & F. J. Areal, 2019. "Preferences for Mitigation of the Negative Impacts of the Oil and Gas Industry in the Niger Delta Region of Nigeria," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 811-843, October.
    • Handle: RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00349-4
    DOI: 10.1007/s10640-019-00349-4
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    Cited by:

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    2. Salazar-Baño, Alfredo-Geovanny & Chas-Amil, María-Luisa & Soliño, Mario, 2024. "The invisible risks of the trans-Ecuadorian oil pipeline system: An analysis of social preferences in Quito," Resources Policy, Elsevier, vol. 94(C).
    3. Philip E. Agbonifo, 2022. "Socio-economic implications of poor environmental management: a framework on the Niger Delta questions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2453-2470, February.
    4. Fraser, Iain & Balcombe, Kelvin & Williams, Louis & McSorley, Eugene, 2021. "Preference stability in discrete choice experiments. Some evidence using eye-tracking," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    5. Abudu, Hermas & Cai, Xiangyu & Lin, Boqiang, 2022. "How upstream petroleum industry affects economic growth and development in petroleum producing-countries: Evidence from Ghana," Energy, Elsevier, vol. 260(C).

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    More about this item

    Keywords

    Discrete choice experiment; Bayesian infinite mixture; Dirichlet process; Nigeria;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General

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