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Accounting for Negative, Zero and Positive Willingness to Pay for Landscape Change in a National Park

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  • Colombo, Sergio
  • Hanley, Nicholas
  • Kristrom, Bengt
  • Watson, Fiona

Abstract

In contingent valuation, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay to being non-negative. In this paper, we investigate the impact of allowing for negative, zero and positive preferences for prospective changes in woodland cover in two UK national parks, the Lake District and the Trossachs. An extended spike model is used to accomplish this. The policy implications of not allowing for negative values in terms of aggregate benefits are also investigated, by comparing the extended spike model with a simple spike making use of only zero and positive bids, and a model which considers positive bids only. We find that ignoring negative values over-states the aggregate benefits of a woodland planting project by up to 44%.

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  • Colombo, Sergio & Hanley, Nicholas & Kristrom, Bengt & Watson, Fiona, 2008. "Accounting for Negative, Zero and Positive Willingness to Pay for Landscape Change in a National Park," Stirling Economics Discussion Papers 2008-10, University of Stirling, Division of Economics.
    • Handle: RePEc:stl:stledp:2008-10
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    2. Ildephonse, Musafili & Oluoch-Kosura, Willis & Otieno, Jakinda, 2016. "Assessing the value farmers attach to Volcanoes National Park management atrtributes in Rwanda: a choice experiment approach," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246273, African Association of Agricultural Economists (AAAE).
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    5. Dikgang, Johane & Muchapondwa, Edwin, 2012. "The Valuation of Biodiversity Conservation by the South African Khomani San “Bushmen†Community," RFF Working Paper Series dp-12-10-efd, Resources for the Future.
    6. Soon, Jan-Jan & Ahmad, Siti-Aznor, 2015. "Willingly or grudgingly? A meta-analysis on the willingness-to-pay for renewable energy use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 877-887.
    7. Liao, Shu-Yi & Tseng, Wei-Chun & Chen, Chi-Chung, 2010. "Eliciting public preference for nuclear energy against the backdrop of global warming," Energy Policy, Elsevier, vol. 38(11), pages 7054-7069, November.
    8. Lee, Gi-Eu & Loveridge, Scott & Joshi, Satish, 2017. "Local acceptance and heterogeneous externalities of biorefineries," Energy Economics, Elsevier, vol. 67(C), pages 328-336.
    9. Dikgang, Johane & Leiman, Anthony & Visser, Martine, 2012. "Analysis of the plastic-bag levy in South Africa," Resources, Conservation & Recycling, Elsevier, vol. 66(C), pages 59-65.
    10. Roberto Ponce & Felipe Vásquez & Alejandra Stehr & Patrick Debels & Carlos Orihuela, 2011. "Estimating the Economic Value of Landscape Losses Due to Flooding by Hydropower Plants in the Chilean Patagonia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(10), pages 2449-2466, August.
    11. Dalia Streimikiene & Tomas Balezentis & Ilona Alisauskaite-Seskiene & Gintare Stankuniene & Zaneta Simanaviciene, 2019. "A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector," Energies, MDPI, vol. 12(8), pages 1-38, April.
    12. Ntuli, Herbert & Muchapondwa, Edwin & Okumu, Boscow, 2020. "Can local communities afford full control over wildlife conservation? The case of Zimbabwe," Journal of choice modelling, Elsevier, vol. 37(C).
    13. Dikgang, Johane & Muchapondwa, Edwin, 2012. "The valuation of biodiversity conservation by the South African Khomani San “bushmen” community," Ecological Economics, Elsevier, vol. 84(C), pages 7-14.
    14. Ojea, Elena & Loureiro, Maria L., 2011. "Identifying the scope effect on a meta-analysis of biodiversity valuation studies," Resource and Energy Economics, Elsevier, vol. 33(3), pages 706-724, September.
    15. Tyllianakis, Emmanouil & Martin-Ortega, Julia, 2021. "Agri-environmental schemes for biodiversity and environmental protection: How we are not yet “hitting the right keys”," Land Use Policy, Elsevier, vol. 109(C).
    16. Broberg, Thomas & Kazukauskas, Andrius, 2014. "Inefficiencies in residential use of energy - A critical overview of literature and energy efficiency policies in EU and Sweden," CERE Working Papers 2014:7, CERE - the Center for Environmental and Resource Economics.
    17. Thomson, Heather & Kempton, Willett, 2018. "Perceptions and attitudes of residents living near a wind turbine compared with those living near a coal power plant," Renewable Energy, Elsevier, vol. 123(C), pages 301-311.
    18. M. Trapero‐Bertran & H. Mistry & J. Shen & J. Fox‐Rushby, 2013. "A Systematic Review And Meta‐Analysis Of Willingness‐To‐Pay Values: The Case Of Malaria Control Interventions," Health Economics, John Wiley & Sons, Ltd., vol. 22(4), pages 428-450, April.
    19. Juan Ignacio Pulido-Fernández & Yaiza López-Sánchez, 2016. "Are Tourists Really Willing to Pay More for Sustainable Destinations?," Sustainability, MDPI, vol. 8(12), pages 1-20, November.
    20. Sahan T. M. Dissanayake & Andrew G. Meyer, 2021. "Incorporating Beliefs and Experiences into Choice Experiment Analysis: Implications for Policy Recommendations," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 823-848, June.
    21. Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2010. "Preferences for site and environmental functions when selecting forthcoming national parks," Ecological Economics, Elsevier, vol. 69(7), pages 1532-1544, May.
    22. Kiran Krishnamurthy, Chandra & Kriström, Bengt, 2013. "Determinants of the price-premium for Green Energy: Evidence from an OECD cross-section," CERE Working Papers 2013:7, CERE - the Center for Environmental and Resource Economics, revised 30 Jun 2014.
    23. 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).
    24. David Worden & Getu Hailu & Kate Jones & Yu Na Lee, 2022. "The effects of bundling on livestock producers' valuations of environmentally friendly traits available through genomic selection," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 263-286, December.

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    Keywords

    contingent valuation; national parks; negative WTP; spike models;
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