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Assessment of Regeneration Projects in Urban Areas of Environmental Interest: A Stated Choice Approach to Estimate Use and Quasi-Option Values

Author

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  • Elisabetta Strazzera

    (Department of Economic and Social Research, University of Cagliari, Viale S Ignazio 78, I-09123 Cagliari, Italy)

  • Elisabetta Cherchi

    (Department of Land Engineering, University of Cagliari, Piazza D'Armi 16, I-09123 Cagliari, Italy)

  • Silvia Ferrini

    (Department of Economic Policy, Finance and Development, Piazza S Francesco 7, I-53100 Siena, Italy, and Centre for Social and Economic Research on the Global Environment, University of East Anglia, Norwich NR4 7TJ, England)

Abstract

We adopt an attribute-based stated choice approach to evaluate public preferences over planning alternatives for an urban site of environmental interest. Since such projects involve some uncertainty and irreversibility, special attention is devoted to the estimation of quasi-option values associated with project development. Two distinct measures for the quasi-option value are estimated, and both coefficients indicate that the public place significant value on the reduction of the possibility of adverse irreversible effects: a more prudent development strategy is valued at about four times greater than a procedure that provides a greater chance of an undesired outcome. Furthermore, the study involves elicitation of intertemporal preferences over projects with different time spans, and estimation of the implicit discount rates: the values obtained seem high if compared with standard discount rates applied to public projects, but not far from interest rates on consumption found in the market.

Suggested Citation

  • Elisabetta Strazzera & Elisabetta Cherchi & Silvia Ferrini, 2010. "Assessment of Regeneration Projects in Urban Areas of Environmental Interest: A Stated Choice Approach to Estimate Use and Quasi-Option Values," Environment and Planning A, , vol. 42(2), pages 452-468, February.
    • Handle: RePEc:sae:envira:v:42:y:2010:i:2:p:452-468
    DOI: 10.1068/a4213
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    2. Joaquin Ameller & Jean-Daniel Rinaudo & Corinne Merly, 2020. "The contribution of economic science to brownfield redevelopment: a review," Post-Print hal-02532209, HAL.
    3. Michela Faccioli & Nick Hanley & Catalina M. Torres Figuerola & Antoni Riera Font, 2015. "Do we care about sustainability? An analysis of time sensitivity of social preferences under environmental time-persistent effects," Discussion Papers in Environment and Development Economics 2015-17, University of St. Andrews, School of Geography and Sustainable Development.
    4. Nyuying Wang & Oleg Golubchikov & Wei Chen & Zhigao Liu, 2020. "The Hybrid Spatialities of Post-Industrial Beijing: Communism, Neoliberalism, and Brownfield Redevelopment," Sustainability, MDPI, vol. 12(12), pages 1-19, June.
    5. David Throsby & Anita Zednik & Jorge E. Araña, 2021. "Public preferences for heritage conservation strategies: a choice modelling approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(3), pages 333-358, September.

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