IDEAS home Printed from https://ideas.repec.org/a/taf/teepxx/v7y2018i4p363-385.html
   My bibliography  Save this article

Accounting for implicit and explicit payment vehicles in a discrete choice experiment

Author

Listed:
  • Musharaf A. Talpur
  • Mark J. Koetse
  • Roy Brouwer

Abstract

This study estimates the benefits of beach quality improvements, using travel costs as an implicit and entrance fee as an explicit payment vehicle in two otherwise identical labelled discrete choice site selection models. Including entrance fee as an explicit payment vehicle in addition to implicit travel costs is expected to affect beach visitors’ preferences and willingness to pay (WTP) since travel costs only are not expected to measure maximum WTP. Convergent validity of preference parameters and WTP derived from the two identical discrete choice experiments (DCEs) is tested using a split-sample approach and specifying a mixed logit choice model. Both preferences and scale parameters are significantly different between the two samples. As expected, mean WTP values are higher when an explicit entrance fee is included in the DCE. Our results suggest that implicit payment vehicles in choice experiments underestimate welfare changes. Beach visitors’ positive WTP holds promise for the introduction of economic instruments such as entrance fees to support the financial sustainability of improved beach management.

Suggested Citation

  • Musharaf A. Talpur & Mark J. Koetse & Roy Brouwer, 2018. "Accounting for implicit and explicit payment vehicles in a discrete choice experiment," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 7(4), pages 363-385, October.
    • Handle: RePEc:taf:teepxx:v:7:y:2018:i:4:p:363-385
    DOI: 10.1080/21606544.2018.1450789
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/21606544.2018.1450789
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/21606544.2018.1450789?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rambonilaza, Tina & Kerouaz, Fathallah, 2023. "Valuing harvest regulation changes in recreational fisheries with a discrete choice experiment study: What can we learn from a synthetic review?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 40-54.
    2. George Halkos & Panagiotis Stavros Aslanidis & Angelos Plataniotis & Phoebe Koundouri, 2024. "Global insights on Sustainable Development Goal 14: Reviewing willingness-to-pay levels for marine ecosystem protection and conservation," DEOS Working Papers 2416, Athens University of Economics and Business.
    3. Khedr, Salma & Rehdanz, Katrin & Brouwer, Roy & van Beukering, Pieter & Dijkstra, Hanna & Duijndam, Sem & Okoli, Ikechukwu C., 2023. "Public preferences for marine plastic litter management across Europe," Ecological Economics, Elsevier, vol. 204(PA).
    4. John Robinson, Peter & van Beukering, Pieter & Brander, Luke & Brouwer, Roy & Haider, W. & Taylor, Michael & Mau, Paulus, 2022. "Understanding the determinants of biodiversity non-use values in the context of climate change: Stated preferences for the Hawaiian coral reefs," Ecosystem Services, Elsevier, vol. 53(C).
    5. Talpur, Musharaf & Brouwer, Roy & Koetse, Mark, 2019. "Opt-Out Forced Choice Effect in Combined Revealed and Stated Preference Discrete Choice Models: A Gender Perspective," MPRA Paper 99631, University Library of Munich, Germany.
    6. Soliño, Mario & Raposo, Rosa, 2022. "Contributing to healthy forests: Social preferences for pest and disease mitigation programs in Spain," Forest Policy and Economics, Elsevier, vol. 140(C).
    7. David Boto-García & Petr Mariel & José Baños Pino & Antonio Alvarez, 2022. "Tourists’ willingness to pay for holiday trip characteristics: A Discrete Choice Experiment," Tourism Economics, , vol. 28(2), pages 349-370, March.

    More about this item

    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:taf:teepxx:v:7:y:2018:i:4:p:363-385. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/teep20 .

    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.