Scenario realism and welfare estimates in choice experiments – A non-market valuation study on the European water framework directive

Kataria, Mitesh; Bateman, Ian J.; Christensen, Tove; Dubgaard, Alex; Hasler, Berit; Hime, S.; Ladenburg, Jacob; Levin, Gregor; Martinsen, Louise; Nissen, Claus

doi:10.1016/j.jenvman.2011.08.010

Cited by 72 publications

(45 citation statements)

References 12 publications

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“…Overall, our results clearly support findings from other studies on the need to account for the spatial context (see [4,6,8,9,38]). Not considering for the distance-decay effect could especially in a territorial state such as Brandenburg lead to severely overestimating welfare gains.…”

Section: Discussionsupporting

confidence: 91%

“…The results indicate that in the closer metropolitan area Berlin-Brandenburg people value changes in water quality positively. Results are therefore in line with studies from other countries (see [3,4,5,6,7]). The mean compensating variation measure for the metropolitan area results in an aggregated overall measure of around Mio € 420 per year for a good water quality in accordance with the EU-WFD objectives.…”

Section: Discussionsupporting

confidence: 90%

“…these figures are based on a model without incorporating distance. 6 In this case the CV estimate strongly increases. For the EU-WFD scenario the mean value would be € 179 per year.…”

Section: Welfare Analysismentioning

confidence: 94%

“…The general expectation is that willingness to pay (WTP) estimates decline with the 46 distance between a respondent's place of residence and a policy site. Among others, this effect has 47 been found by Bateman et al [8], Kataria et al [6], Schaafsma et al [36]. Another way to consider 48 the spatial context is to account for the respondents place of residence.…”

Section: Introduction 19mentioning

confidence: 95%

“…It was latter on suggested by researchers to employ economic valuation 34 when the need to define disproportional high measurement costs became evident (Brouwer [1]; 35 Hanley et al [2]). Meanwhile, several studies from across Europe determining the benefits of 36 changes in water quality have been presented, e.g., Bliem and Getzner [3]; Brouwer et al [4]; Glenk 37 et al [5]; Kataria et al [6], and Metcalfe et al [7]. 1 The studies, using the categorization of water 38 quality levels in the WFD, indicate that people value water quality improvements positively.…”

Section: Introduction 19mentioning

confidence: 99%

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The value of water quality improvements in the region Berlin–Brandenburg as a function of distance and state residency

Meyerhoff

Boeri

Hartje

2014

Water Resources and Economics

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The value of water quality improvements in the region BerlinBrandenburg as a function of distance and state residency Meyerhoff, J., Boeri, M., & Hartje, V. (2014) The value of water quality improvements in the rivers of the metropolitan region Berlin-1 Brandenburg as a function of distance and state residency 2Abstract: The study uses a discrete choice experiment (DCE) to elicit willingness to pay estimates for 3 changes in the water quality of five river stretches. As many regions the metropolitan region Berlin-4Brandenburg struggles to achieve the objectives of the Water Framework Directive until 2015. A 5 major problem is the high load of nutrients. As the region is part of two states (Länder) and the river 6 sections are common throughout the whole region we account for the spatial context twofold. Firstly, 7we incorporate the distance between each respondent and all river stretches in all MNL and RPL 8 models, and, secondly, we consider whether respondents reside in the state of Berlin or Brandenburg. 9The compensating variation (CV) calculated for various scenarios shows that overall people would 10 significantly benefit from improved water quality. The CV measures, however, also reveal that not 11 considering the spatial context would result in severely biased welfare measures. While the distance-12 decay effect lowers CV state residency is connected to the frequency of status quo choices and not 13 accounting for residency would underestimate possible welfare gains in one state. Another finding is 14 that the extent of the market varies with respect to attributes (river stretches) and attribute levels (water 15 quality levels). 16

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Section: Discussionsupporting

confidence: 91%

Section: Discussionsupporting

confidence: 90%

“…these figures are based on a model without incorporating distance. 6 In this case the CV estimate strongly increases. For the EU-WFD scenario the mean value would be € 179 per year.…”

Section: Welfare Analysismentioning

confidence: 94%

Section: Introduction 19mentioning

confidence: 95%

Section: Introduction 19mentioning

confidence: 99%

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The value of water quality improvements in the region Berlin–Brandenburg as a function of distance and state residency

Meyerhoff

Boeri

Hartje

2014

Water Resources and Economics

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Revealed and stated preference valuation and transfer: A within‐sample comparison of water quality improvement values

Ferrini

Schaafsma

Bateman

2014

Water Resources Research

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Benefit transfer (BT) methods are becoming increasingly important for environmental policy, but the empirical findings regarding transfer validity are mixed. A novel valuation survey was designed to obtain both stated preference (SP) and revealed preference (RP) data concerning river water quality values from a large sample of households. Both dichotomous choice and payment card contingent valuation (CV) and travel cost (TC) data were collected. Resulting valuations were directly compared and used for BT analyses using both unit value and function transfer approaches. WTP estimates are found to pass the convergence validity test. BT results show that the CV data produce lower transfer errors, below 20% for both unit value and function transfer, than TC data especially when using function transfer. Further, comparison of WTP estimates suggests that in all cases, differences between methods are larger than differences between study areas. Results show that when multiple studies are available, using welfare estimates from the same area but based on a different method consistently results in larger errors than transfers across space keeping the method constant.

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Incorporating Beliefs and Experiences into Choice Experiment Analysis: Implications for Policy Recommendations

Dissanayake¹,

Meyer²

2020

Applied Eco Perspectives Pol

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We show that respondents' beliefs about future outcomes and prior recreational experiences affect policy recommendations from choice experiments. For New England residents, we find that willingness to pay for a new national park in Maine differs based on respondents' stated beliefs about the status quo long-term land use. We also find that respondents who do (do not) hunt or snowmobile would pay significantly more (less) for a park allowing these activities. Land managers may find a twopark solution (one allowing the activities and one prohibiting them) would be best; this insight would be missed when neglecting to model conflicting recreational preferences.

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Scenario realism and welfare estimates in choice experiments – A non-market valuation study on the European water framework directive

Cited by 72 publications

References 12 publications

The value of water quality improvements in the region Berlin–Brandenburg as a function of distance and state residency

The value of water quality improvements in the region Berlin–Brandenburg as a function of distance and state residency

Revealed and stated preference valuation and transfer: A within‐sample comparison of water quality improvement values

Incorporating Beliefs and Experiences into Choice Experiment Analysis: Implications for Policy Recommendations

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