Spatial Preference Heterogeneity: A Choice Experiment

The main objective is to assess preference heterogeneity related to the spatial distribution of water quality improvements throughout a river basin. In a choice experiment, the river basin’s hydrogeographical units and the levels of water quality improvement are included as attributes in the experimental design. Changes in water quality throughout the river basin are visualized with maps and modeled simultaneously in relation to where respondents live, in a random utility model. Not accounting for spatial preference heterogeneity results, in this case study, in an underestimation of welfare when aggregating willingness-to-pay values from subbasins to the river basin as a whole. (JEL Q25, Q51)

[1]  Joffre Swait,et al.  The Akaike Likelihood Ratio Index , 1986, Transp. Sci..

[2]  I. Ajzen,et al.  Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research , 1977 .

[3]  S. Addelman.  Symmetrical and Asymmetrical Fractional Factorial Plans , 1962 .

[4]  D. McFadden,et al.  MIXED MNL MODELS FOR DISCRETE RESPONSE , 2000 .

[5]  Charles D. Barrett.  Understanding Attitudes and Predicting Social Behavior , 1980 .

[6]  Julia Martín-Ortega,et al.  Caracterización de los usos del agua en la Demarcación del Guadalquivir en aplicación de la Directiva Marco de Aguas , 2008 .

[7]  J. Hausman.  Specification tests in econometrics , 1978 .

[8]  R. Carson,et al.  The Value of clean water: The public's willingness to pay for boatable, fishable, and swimmable quality water , 1993 .

[9]  D. McFadden.  Conditional logit analysis of qualitative choice behavior , 1972 .

[10]  Riccardo Scarpa,et al.  Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study , 2007 .

[11]  J. Louviere,et al.  Choice Modelling and Tests of Benefit Transfer 1 , 1998 .

[12]  A. Fotheringham.  Note---Consumer Store Choice and Choice Set Definition , 1988 .

[13]  John M. Rose,et al.  Applied Choice Analysis: A Primer , 2005 .

[14]  D. Hensher,et al.  Stated Choice Methods: Analysis and Applications , 2000 .

[15]  Ian J. Bateman,et al.  The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP , 2006 .

[16]  P. Zarembka.  Frontiers in econometrics , 1973 .

[17]  Y Marino,et al.  MINISTERIO DE MEDIO AMBIENTE, Y MEDIO RURAL , 2010 .

[18]  Dana Marie Bauer,et al.  Spatial Factors and Stated Preference Values for Public Goods: Considerations for Rural Land Use , 2002, Land Economics.

[19]  B. Muthén,et al.  Deciding on the Number of Classes in Latent Class Analysis and Growth Mixture Modeling: A Monte Carlo Simulation Study , 2007 .

[20]  Mark D. Uncles,et al.  Discrete Choice Analysis: Theory and Application to Travel Demand , 1987 .

[21]  John B. Loomis,et al.  Computational Methods for Measuring the Difference of Empirical Distributions , 2005 .

[22]  Thomas C. Brown,et al.  Testing Part‐Whole Valuation Effects in Contingent Valuation of Instream Flow Protection , 1995 .

[23]  Riccardo Scarpa,et al.  Effects on Welfare Measures of Alternative Means of Accounting for Preference Heterogeneity in Recreational Demand Models , 2008 .

[24]  David A. Hensher,et al.  Applied discrete-choice modelling , 1980 .

[25]  Nick Hanley,et al.  Estimating the economic value of improvements in river ecology using choice experiments: an application to the water framework directive. , 2006, Journal of environmental management.

[26]  Jordan J. Louviere,et al.  A comparison of stated preference methods for environmental valuation , 1996 .

[27]  I. Ajzen,et al.  Understanding Attitudes and Predicting Social Behavior , 1980 .

[28]  Roy Brouwer,et al.  The potential role of stated preference methods in the Water Framework Directive to assess disproportionate costs , 2008 .

[29]  Jeffrey Bennett,et al.  Valuing New South Wales Rivers for Use in Benefit Transfer , 2004 .

[30]  李幼升,et al.  Ph , 1989 .

[31]  C. Navarro,et al.  La cuestión hídrica en Andalucía. Actitudes y valores de los andaluces respecto al problema del agua , 2004 .

[32]  C. Bhat.  Quasi-random maximum simulated likelihood estimation of the mixed multinomial logit model , 2001 .

[33]  R. Scarpa,et al.  Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences , 2005, Land Economics.

[34]  N. Hanley,et al.  Choice modelling approaches: a superior alternative for environmental valuation? , 2002 .

[35]  Bill Provencher,et al.  Does accounting for preference heterogeneity improve the forecasting of a random utility model? A case study , 2004 .

[36]  Nicholas E. Flores,et al.  Contingent Valuation: Controversies and Evidence , 2000 .

[37]  I. Krinsky,et al.  On Approximating the Statistical Properties of Elasticities , 1986 .

[38]  David A. Hensher,et al.  A latent class model for discrete choice analysis: contrasts with mixed logit , 2003 .

[39]  Riccardo Scarpa,et al.  Individual-specific welfare measures for public goods: a latent class approach to residential customers of Yorkshire Water , 2005 .