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A Pseudo-Sequential Choice Model for Valuing Multiple Environmental Policy or Program Components in Contingent Valuation Applications

Author

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  • Volinskiy, Dmitriy
  • Bergstrom, John C.
  • Cornwell, Christopher M.

Abstract

The study proposes a discrete-choice model for environmental policy/program valuation, to be used in cases when several policies are valued sequentially. The stochastic specification of the model is consistent with the transitivity and continuity axioms of utility analysis. An empirical methodology for the model is suggested. An application of this model to WTP estimation for Little Tennessee River watershed ecosystem restoration is provided. Findings from the application agree with the hypothesized agent's behavior.

Suggested Citation

  • Volinskiy, Dmitriy & Bergstrom, John C. & Cornwell, Christopher M., 2005. "A Pseudo-Sequential Choice Model for Valuing Multiple Environmental Policy or Program Components in Contingent Valuation Applications," 2005 Annual meeting, July 24-27, Providence, RI 19109, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19109
    DOI: 10.22004/ag.econ.19109
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    References listed on IDEAS

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    1. Matzkin, Rosa L, 1992. "Nonparametric and Distribution-Free Estimation of the Binary Threshold Crossing and the Binary Choice Models," Econometrica, Econometric Society, vol. 60(2), pages 239-270, March.
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    6. John P. Hoehn, 1991. "Valuing the Multidimensional Impacts of Environmental Policy: Theory and Methods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 289-299.
    7. Read, Daniel & Antonides, Gerrit & van den Ouden, Laura & Trienekens, Harry, 2001. "Which Is Better: Simultaneous or Sequential Choice?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 84(1), pages 54-70, January.
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    9. Holmes, Thomas P. & Bergstrom, John C. & Huszar, Eric & Kask, Susan B. & Orr, Fritz III, 2004. "Contingent valuation, net marginal benefits, and the scale of riparian ecosystem restoration," Ecological Economics, Elsevier, vol. 49(1), pages 19-30, May.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

    Environmental Economics and Policy;

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