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Substitution Effects and Spatial Preference Heterogeneity in Single- and Multiple-Site Choice Experiments

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  • Ivana Logar
  • Roy Brouwer

Abstract

A novel discrete choice experiment (DCE) design allows testing of substitution effects based on the framing of, and distances to, substitute sites. The same ecosystem services and biodiversity provided at different sites are valued independently in single-site DCEs and simultaneously in a multiple-site DCE, using an identical experimental design. Site-specific utility functions are estimated with and without controlling for spatial preference heterogeneity. Framing choices as alternative projects at single or multiple sites significantly influences substitutability between sites, choice behavior, and welfare estimates. Distance decay displays significant heterogeneity in different directions from the valued sites and between urban and rural areas.

Suggested Citation

  • Ivana Logar & Roy Brouwer, 2018. "Substitution Effects and Spatial Preference Heterogeneity in Single- and Multiple-Site Choice Experiments," Land Economics, University of Wisconsin Press, vol. 94(2), pages 302-322.
    • Handle: RePEc:uwp:landec:v:94:y:2018:i:2:p:302-322
    Note: DOI: 10.3368/le.94.2.302
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    File URL: http://le.uwpress.org/cgi/reprint/94/2/302
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    Citations

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    Cited by:

    1. 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.
    2. Boto-García, David & Mariel, Petr & Baños-Pino, José Francisco, 2023. "Intra-household bargaining for a joint vacation," Journal of choice modelling, Elsevier, vol. 47(C).
    3. François Bareille & Matteo Zavalloni, 2020. "Decentralisation of agri-environmental policy design," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(4), pages 1502-1530.
    4. Søren B. Olsen & Cathrine U. Jensen & Toke E. Panduro, 2020. "Modelling Strategies for Discontinuous Distance Decay in Willingness to Pay for Ecosystem Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 351-386, February.
    5. 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.
    6. Dai, Dan & Brouwer, Roy & Lei, Kun, 2021. "Measuring the economic value of urban river restoration," Ecological Economics, Elsevier, vol. 190(C).
    7. Valeria M. Toledo‐Gallegos & Jed Long & Danny Campbell & Tobias Börger & Nick Hanley, 2021. "Spatial clustering of willingness to pay for ecosystem services," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 673-697, September.
    8. Marije Schaafsma & Roy Brouwer, 2020. "Substitution Effects in Spatial Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 323-349, February.
    9. Trudy Ann Cameron & Sonja H. Kolstoe, 2022. "Using Auxiliary Population Samples for Sample-Selection Correction in Models Based on Crowd-Sourced Volunteered Geographic Information," Land Economics, University of Wisconsin Press, vol. 98(1), pages 1-21.
    10. David Boto-García & Petr Mariel, 2024. "How well do couples know their partners’ preferences? Experimental evidence from joint recreation," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 41(3), pages 657-686, October.
    11. Logar, Ivana & Brouwer, Roy & Campbell, Danny, 2020. "Does attribute order influence attribute-information processing in discrete choice experiments?," Resource and Energy Economics, Elsevier, vol. 60(C).

    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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