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Heterogeneity in the WTP for recreational access: distributional aspects

Author

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  • Danny Campbell
  • Suzanne Elizabeth Vedel
  • Bo Jellesmark Thorsen
  • Jette Bredahl Jacobsen

Abstract

In this study we have addressed appropriate modelling of heterogeneity in willingness to pay (WTP) for environmental goods, and have demonstrated its importance using a case of forest access in Denmark. We compared WTP distributions for four models: (1) a multinomial logit model, (2) a mixed logit model assuming a univariate Normal distribution, (3) or assuming a multivariate Normal distribution allowing for correlation across attributes, and (4) a mixture of two truncated Normal distributions, allowing for correlation among attributes. In the first two models mean WTP for enhanced access was negative. However, models accounting for preference heterogeneity found a positive mean WTP, but a large sub-group with negative WTP. Accounting for preference heterogeneity can alter overall conclusions, which highlights the importance of this for policy recommendations.

Suggested Citation

  • Danny Campbell & Suzanne Elizabeth Vedel & Bo Jellesmark Thorsen & Jette Bredahl Jacobsen, 2014. "Heterogeneity in the WTP for recreational access: distributional aspects," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 57(8), pages 1200-1219, August.
    • Handle: RePEc:taf:jenpmg:v:57:y:2014:i:8:p:1200-1219
    DOI: 10.1080/09640568.2013.793173
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    Citations

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    Cited by:

    1. Japelj, Anže & Mavsar, Robert & Hodges, Donald & Kovač, Marko & Juvančič, Luka, 2016. "Latent preferences of residents regarding an urban forest recreation setting in Ljubljana, Slovenia," Forest Policy and Economics, Elsevier, vol. 71(C), pages 71-79.
    2. Vedel, Suzanne Elizabeth & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2015. "Contracts for afforestation and the role of monitoring for landowners’ willingness to accept," Forest Policy and Economics, Elsevier, vol. 51(C), pages 29-37.
    3. Tyrväinen, Liisa & Mäntymaa, Erkki & Juutinen, Artti & Kurttila, Mikko & Ovaskainen, Ville, 2021. "Private landowners’ preferences for trading forest landscape and recreational values: A choice experiment application in Kuusamo, Finland," Land Use Policy, Elsevier, vol. 107(C).
    4. Yuan, Yuan & You, Wen & Boyle, Kevin J., 2015. "A guide to heterogeneity features captured by parametric and nonparametric mixing distributions for the mixed logit model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205733, Agricultural and Applied Economics Association.
    5. Nielsen, Anne Sofie Elberg & Lundhede, Thomas Hedemark & Jacobsen, Jette Bredahl, 2016. "Local consequences of national policies - A spatial analysis of preferences for forest access reduction," Forest Policy and Economics, Elsevier, vol. 73(C), pages 68-77.
    6. Filyushkina, Anna & Agimass, Fitalew & Lundhede, Thomas & Strange, Niels & Jacobsen, Jette Bredahl, 2017. "Preferences for variation in forest characteristics: Does diversity between stands matter?," Ecological Economics, Elsevier, vol. 140(C), pages 22-29.
    7. Campbell, Danny & Hensher, David A. & Scarpa, Riccardo, 2014. "Bounding WTP distributions to reflect the ‘actual’ consideration set," Journal of choice modelling, Elsevier, vol. 11(C), pages 4-15.
    8. Agimass, Fitalew & Lundhede, Thomas & Panduro, Toke Emil & Jacobsen, Jette Bredahl, 2018. "The choice of forest site for recreation: A revealed preference analysis using spatial data," Ecosystem Services, Elsevier, vol. 31(PC), pages 445-454.
    9. Nordén, Anna & Coria, Jessica & Jönsson, Anna Maria & Lagergren, Fredrik & Lehsten, Veiko, 2017. "Divergence in stakeholders' preferences: Evidence from a choice experiment on forest landscapes preferences in Sweden," Ecological Economics, Elsevier, vol. 132(C), pages 179-195.
    10. Boudreaux, Greg & Lupi, Frank & Sohngen, Brent & Xu, Alan, 2023. "Measuring beachgoer preferences for avoiding harmful algal blooms and bacterial warnings," Ecological Economics, Elsevier, vol. 204(PA).
    11. Juutinen, Artti & Kosenius, Anna-Kaisa & Ovaskainen, Ville, 2014. "Estimating the benefits of recreation-oriented management in state-owned commercial forests in Finland: A choice experiment," Journal of Forest Economics, Elsevier, vol. 20(4), pages 396-412.
    12. Varela, Elsa & Jacobsen, Jette Bredahl & Soliño, Mario, 2014. "Understanding the heterogeneity of social preferences for fire prevention management," Ecological Economics, Elsevier, vol. 106(C), pages 91-104.
    13. Bass, Daniel A. & McFadden, Brandon R. & Messer, Kent D., 2021. "A case for measuring negative willingness to pay for consumer goods," Food Policy, Elsevier, vol. 104(C).
    14. Bakhtiari, Fatemeh & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark & Lundhede, Thomas Hedemark & Strange, Niels & Boman, Mattias, 2018. "Disentangling Distance and Country Effects on the Value of Conservation across National Borders," Ecological Economics, Elsevier, vol. 147(C), pages 11-20.

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