IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v41y2009i1p97-111.html
   My bibliography  Save this article

Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements

Author

Listed:
  • Danny Campbell
  • W George Hutchinson
  • Riccardo Scarpa

    (Waikato Management School, The University of Waikato, Hamilton, New Zealand)

Abstract

We report findings from a choice experiment survey designed to estimate the economic benefits of policy measures to improve the rural landscape in the Republic of Ireland. Using a panel mixed logit specification to account for unobserved taste heterogeneity we derived individual-specific willingness-to-pay (WTP) estimates for each respondent in the sample. We subsequently investigated the spatial dependence of these estimates. Results suggest the existence of positive spatial autocorrelation for all rural landscape attributes. As a means of benefit transfer, kriging methods were employed to interpolate WTP estimates across the whole of the Republic of Ireland. The kriged WTP surfaces confirm the existence of spatial dependence and illustrate the implied spatial variation and regional disparities in WTP for all the rural landscape improvements investigated.

Suggested Citation

  • Danny Campbell & W George Hutchinson & Riccardo Scarpa, 2009. "Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements," Environment and Planning A, , vol. 41(1), pages 97-111, January.
    • Handle: RePEc:sae:envira:v:41:y:2009:i:1:p:97-111
    DOI: 10.1068/a4038
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a4038
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a4038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Schkade David A. & Payne John W., 1994. "How People Respond to Contingent Valuation Questions: A Verbal Protocol Analysis of Willingness to Pay for an Environmental Regulation," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 88-109, January.
    2. Troy, Austin & Wilson, Matthew A., 2006. "Mapping ecosystem services: Practical challenges and opportunities in linking GIS and value transfer," Ecological Economics, Elsevier, vol. 60(2), pages 435-449, December.
    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.
    4. 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, , vol. 38(12), pages 2365-2376, December.
    5. Ian J. Bateman & Christine Ennew & Andrew A. Lovett & Anthony J. Rayner, 1999. "Modelling and Mapping Agricultural Output Values Using Farm Specific Details and Environmental Databases," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 488-511, September.
    6. Ian J. Bateman & Roy Brouwer & Helen Davies & Brett H. Day & Amelie Deflandre & Salvatore Di Falco & Stavros Georgiou & David Hadley & Michael Hutchins & Andrew P. Jones & David Kay & Graham Leeks & M, 2006. "Analysing the Agricultural Costs and Non‐market Benefits of Implementing the Water Framework Directive," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(2), pages 221-237, July.
    7. 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.
    8. 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.
    9. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    10. 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.
    11. Nancy E. Bockstael, 1996. "Modeling Economics and Ecology: The Importance of a Spatial Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1168-1180.
    12. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    13. 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.
    14. 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, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 219-269, June.
    15. Julie Le Gallo & Luc Anselin, 2006. "Interpolation of air quality measures in hedonic house price models: spatial aspects," Post-Print hal-00401242, HAL.
    16. Nick Hanley & Douglas MacMillan & Robert E. Wright & Craig Bullock & Ian Simpson & Dave Parsisson & Bob Crabtree, 1998. "Contingent Valuation Versus Choice Experiments: Estimating the Benefits of Environmentally Sensitive Areas in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 1-15, March.
    17. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
    18. Guy D. Garrod & Riccardo Scarpa & Kenneth G. Willis, 2002. "Estimating the Benefits of Traffic Calming on Through Routes: A Choice Experiment Approach," Journal of Transport Economics and Policy, University of Bath, vol. 36(2), pages 211-231, May.
    19. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
    20. Stephane Hess & John Polak, 2003. "An alternative method to the scrambled Halton sequence for removing correlation between standard Halton sequences in high dimensions," ERSA conference papers ersa03p406, European Regional Science Association.
    21. Robin Naidoo & Taylor H Ricketts, 2006. "Mapping the Economic Costs and Benefits of Conservation," PLOS Biology, Public Library of Science, vol. 4(11), pages 1-12, October.
    22. Danny Campbell, 2007. "Willingness to Pay for Rural Landscape Improvements: Combining Mixed Logit and Random‐Effects Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 467-483, September.
    23. Mauricio Sillano & Juan de Dios Ortúzar, 2005. "Willingness-to-Pay Estimation with Mixed Logit Models: Some New Evidence," Environment and Planning A, , vol. 37(3), pages 525-550, March.
    24. Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
    25. Jayson L. Lusk & F. Bailey Norwood, 2005. "Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 771-785.
    26. 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.
    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. Campbell, Danny & Sinclair, Victoria, 2008. "Mapping preferences for the restoration of environmental damage caused by illegal dumping," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36772, Agricultural Economics Society.
    2. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    3. Tagliafierro, C. & Boeri, M. & Longo, A. & Hutchinson, W.G., 2016. "Stated preference methods and landscape ecology indicators: An example of transdisciplinarity in landscape economic valuation," Ecological Economics, Elsevier, vol. 127(C), pages 11-22.
    4. Abildtrup, Jens & Garcia, Serge & Olsen, Søren Bøye & Stenger, Anne, 2013. "Spatial preference heterogeneity in forest recreation," Ecological Economics, Elsevier, vol. 92(C), pages 67-77.
    5. Campbell, Danny, 2007. "Combining mixed logit models and random effects models to identify the determinants of willingness to pay for rural landscape improvements," 81st Annual Conference, April 2-4, 2007, Reading University, UK 7975, Agricultural Economics Society.
    6. Campbell, Danny & Hutchinson, W. George & Scarpa, Riccardo, 2006. "Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates," Sustainability Indicators and Environmental Valuation Working Papers 12224, Fondazione Eni Enrico Mattei (FEEM).
    7. Klaus Glenk & Robert J. Johnston & Jürgen Meyerhoff & Julian Sagebiel, 2020. "Spatial Dimensions of Stated Preference Valuation in Environmental and Resource Economics: Methods, Trends and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 215-242, February.
    8. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    9. Campbell, Danny & Hutchinson, W. George & Scarpa, Riccardo, 2006. "Using Discrete Choice Experiments to Derive Individual-Specific WTP Estimates for Landscape Improvements under Agri-Environmental Schemes: Evidence from the Rural Environment Protection Scheme in Irel," Sustainability Indicators and Environmental Valuation Working Papers 12220, Fondazione Eni Enrico Mattei (FEEM).
    10. Danny Campbell & George Hutchinson & Riccardo Scarpa, 2006. "Using mixed logit models to derive individual-specific WTP estimates for landscape improvements under agri-environmental schemes: evidence from the Rural Environment Protection Scheme in Ireland," Working Papers 0607, Rural Economy and Development Programme,Teagasc.
    11. Tomas Badura & Silvia Ferrini & Michael Burton & Amy Binner & Ian J. Bateman, 2020. "Using Individualised Choice Maps to Capture the Spatial Dimensions of Value Within Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 297-322, February.
    12. Holland, Benedict M. & Johnston, Robert J., 2017. "Optimized quantity-within-distance models of spatial welfare heterogeneity," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 110-129.
    13. Danny Campbell & George Hutchinson & Riccardo Scarpa, 2006. "Integrating landscape improvement indices and discrete choice experiments: evidence from the Rural Environment Protection Scheme in Ireland," Working Papers 0609, Rural Economy and Development Programme,Teagasc.
    14. Danny Campbell & Riccardo Scarpa & W. Hutchinson, 2008. "Assessing the spatial dependence of welfare estimates obtained from discrete choice experiments," Letters in Spatial and Resource Sciences, Springer, vol. 1(2), pages 117-126, December.
    15. Johnston, Robert J. & Ramachandran, Mahesh & Schultz, Eric T. & Segerson, Kathleen & Besedin, Elena Y., 2011. "Characterizing Spatial Pattern in Ecosystem Service Values when Distance Decay Doesn’t Apply: Choice Experiments and Local Indicators of Spatial Association," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103374, Agricultural and Applied Economics Association.
    16. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    17. Yao, Richard T. & Scarpa, Riccardo & Turner, James A. & Barnard, Tim D. & Rose, John M. & Palma, João H.N. & Harrison, Duncan R., 2014. "Valuing biodiversity enhancement in New Zealand's planted forests: Socioeconomic and spatial determinants of willingness-to-pay," Ecological Economics, Elsevier, vol. 98(C), pages 90-101.
    18. Juan Carlos Martín & Concepción Román & Cira Mendoza, 2018. "Determinants for sun-and-beach self-catering accommodation selection," Tourism Economics, , vol. 24(3), pages 319-336, May.
    19. Zhu, Dianchen & Sze, N.N. & Feng, Zhongxiang & Chan, Ho-Yin, 2023. "Waiting for signalized crossing or walking to footbridge/underpass? Examining the effect of weather using stated choice experiment with panel mixed random regret minimization approach," Transport Policy, Elsevier, vol. 138(C), pages 144-169.
    20. Bliemer, Michiel C.J. & Rose, John M., 2010. "Construction of experimental designs for mixed logit models allowing for correlation across choice observations," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 720-734, July.

    More about this item

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

    Statistics

    Access and download statistics

    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:sae:envira:v:41:y:2009:i:1:p:97-111. 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: SAGE Publications (email available below). General contact details of provider: .

    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.