IDEAS home Printed from https://ideas.repec.org/p/ags/eaae11/116074.html
   My bibliography  Save this paper

Incorporating Local Water Quality in Welfare Measures of Agri-environmental Policy: A Choice Modelling Approach Employing GIS

Author

Listed:
  • Tait, Peter R.
  • Baskaran, Ramesh

Abstract

The spatial distribution of agro-environmental policy benefits has important implications for the efficient allocation of management effort. The practical convenience of relying on sample mean values of individual benefits for aggregation can come at the cost of biased aggregate estimates. The main objective of this paper is to test spatial hypotheses regarding respondents’ local water quality and quantity, and their willingness-to-pay for improvements in water quality attributes. This paper combines choice experiment and spatially related water quality data via a Geographical Information System (GIS) to develop a method that evaluates the influence of respondents’ local water quality on willingness-to-pay for river and stream conservation programs in Canterbury, New Zealand. Results show that those respondents who live in the vicinity of low quality waterway are willing to pay more for improvements relative to those who live near to high quality waterways.

Suggested Citation

  • Tait, Peter R. & Baskaran, Ramesh, 2011. "Incorporating Local Water Quality in Welfare Measures of Agri-environmental Policy: A Choice Modelling Approach Employing GIS," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116074, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:116074
    DOI: 10.22004/ag.econ.116074
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/116074/files/Tait_Peter_433.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.116074?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
    ---><---

    References listed on IDEAS

    as
    1. Danny Campbell & W George Hutchinson & Riccardo Scarpa, 2009. "Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements," Environment and Planning A, , vol. 41(1), pages 97-111, January.
    2. Concu, Giovanni B., 2007. "Investigating distance effects on environmental values: a choice modelling approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-20.
    3. Condon, Brian & Hodges, Alan W. & Matta, Rao, 2007. "Public Preferences and Values for Rural Land Preservation in Florida," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9857, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Robin Naidoo & Taylor H Ricketts, 2006. "Mapping the Economic Costs and Benefits of Conservation," PLOS Biology, Public Library of Science, vol. 4(11), pages 1-12, October.
    5. Chen, Nengwang & Li, Huancheng & Wang, Lihong, 2009. "A GIS-based approach for mapping direct use value of ecosystem services at a county scale: Management implications," Ecological Economics, Elsevier, vol. 68(11), pages 2768-2776, September.
    6. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December.
    7. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    8. Mark Morrison, 2000. "Aggregation Biases in Stated Preference Studies," Australian Economic Papers, Wiley Blackwell, vol. 39(2), pages 215-230, June.
    9. repec:bla:ausecp:v:39:y:2000:i:2:p:215-30 is not listed on IDEAS
    10. David Hensher & John Rose & William Greene, 2005. "The implications on willingness to pay of respondents ignoring specific attributes," Transportation, Springer, vol. 32(3), pages 203-222, May.
    11. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, November.
    12. Martin-Ortega, Julia & Brouwer, Roy & Berbel, Julio, 2009. "Economic analysis of spatial preferences heterogeneity of water quality," 2009 Conference, August 16-22, 2009, Beijing, China 50626, International Association of Agricultural Economists.
    13. I.J. Bateman & A.P. Jones & A.A. Lovett & I.R. Lake & B.H. Day, 2002. "Applying Geographical Information Systems (GIS) to Environmental and Resource Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 219-269, June.
    14. Taylor, R. Garth & McKean, John R. & Johnson, Donn M., 2010. "Measuring the Location Value of a Recreation Site," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(1), pages 1-18.
    15. Jenkins, W. Aaron & Murray, Brian C. & Kramer, Randall A. & Faulkner, Stephen P., 2010. "Valuing ecosystem services from wetlands restoration in the Mississippi Alluvial Valley," Ecological Economics, Elsevier, vol. 69(5), pages 1051-1061, March.
    16. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    17. Mark Agee & Thomas Crocker, 2010. "Directional heterogeneity of environmental disamenities: the impact of crematory operations on adjacent residential values," Applied Economics, Taylor & Francis Journals, vol. 42(14), pages 1735-1745.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Marsh, Dan & Phillips, Yvonne, 2012. "Difficult Choices: What Influences the Error Variance in a Choice Experiment," 2012 Conference, August 31, 2012, Nelson, New Zealand 139651, New Zealand Agricultural and Resource Economics Society.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tait, Peter & Baskaran, Ramesh & Cullen, Ross & Bicknell, Kathryn, 2012. "Nonmarket valuation of water quality: Addressing spatially heterogeneous preferences using GIS and a random parameter logit model," Ecological Economics, Elsevier, vol. 75(C), pages 15-21.
    2. Campbell, Danny & Sinclair, Victoria, 2008. "Mapping preferences for the restoration of environmental damage caused by illegal dumping," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36772, Agricultural Economics Society.
    3. Holland, Benedict M. & Johnston, Robert J., 2017. "Optimized quantity-within-distance models of spatial welfare heterogeneity," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 110-129.
    4. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    5. 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.
    6. Danny Campbell & W George Hutchinson & Riccardo Scarpa, 2009. "Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements," Environment and Planning A, , vol. 41(1), pages 97-111, January.
    7. 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.
    8. Termansen, Mette & McClean, Colin J. & Jensen, Frank Søndergaard, 2013. "Modelling and mapping spatial heterogeneity in forest recreation services," Ecological Economics, Elsevier, vol. 92(C), pages 48-57.
    9. Yao, Richard T. & Scarpa, Riccardo & Turner, James A. & Barnard, Tim D. & Rose, John M. & Palma, João H.N. & Harrison, Duncan R., 2014. "Valuing biodiversity enhancement in New Zealand's planted forests: Socioeconomic and spatial determinants of willingness-to-pay," Ecological Economics, Elsevier, vol. 98(C), pages 90-101.
    10. Choi, Andy S. & Lee, Choong-Ki & Tanaka, Katsuya & Xu, Honggang, 2018. "Value spillovers from the Korean DMZ areas and social desirability," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 75(C), pages 95-104.
    11. Johnston, Robert J. & Ramachandran, Mahesh & Schultz, Eric T. & Segerson, Kathleen & Besedin, Elena Y., 2011. "Characterizing Spatial Pattern in Ecosystem Service Values when Distance Decay Doesn’t Apply: Choice Experiments and Local Indicators of Spatial Association," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103374, Agricultural and Applied Economics Association.
    12. De Valck, Jeremy & Vlaeminck, Pieter & Liekens, Inge & Aertsens, Joris & Chen, Wendy & Vranken, Liesbet, 2012. "The sources of preference heterogeneity for nature restoration scenarios," Working Papers 146522, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    13. Giovanni B Concu, 2009. "Measuring Environmental Externality Spillovers through Choice Modelling," Environment and Planning A, , vol. 41(1), pages 199-212, January.
    14. Weller, Priska & Elsasser, Peter, 2018. "Preferences for forest structural attributes in Germany – Evidence from a choice experiment," Forest Policy and Economics, Elsevier, vol. 93(C), pages 1-9.
    15. Schägner, Jan Philipp & Brander, Luke & Maes, Joachim & Hartje, Volkmar, 2013. "Mapping ecosystem services' values: Current practice and future prospects," Ecosystem Services, Elsevier, vol. 4(C), pages 33-46.
    16. repec:ehu:biltok:5564 is not listed on IDEAS
    17. Abildtrup, Jens & Garcia, Serge & Olsen, Søren Bøye & Stenger, Anne, 2013. "Spatial preference heterogeneity in forest recreation," Ecological Economics, Elsevier, vol. 92(C), pages 67-77.
    18. Holland, Benedict M. & Johnston, Robert J., 2014. "Spatially-Referenced Choice Experiments: Tests of Individualized Geocoding in Stated Preference Questionnaires," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170191, Agricultural and Applied Economics Association.
    19. Joffre Swait & Cristiano Franceschinis & Mara Thiene, 2020. "Antecedent Volition and Spatial Effects: Can Multiple Goal Pursuit Mitigate Distance Decay?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 243-270, February.
    20. Mariel, Petr & Ayala, Amaya de & Hoyos, David & Abdullah, Sabah, 2013. "Selecting random parameters in discrete choice experiment for environmental valuation: A simulation experiment," Journal of choice modelling, Elsevier, vol. 7(C), pages 44-57.
    21. 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.

    More about this item

    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:eaae11:116074. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.