Using Conjoint Analysis To Value Ecosystem Change

Abstract

Economists have developed a variety of methods to measure the values of environmental goods and services. Conjoint analysis (CJ) is a technique developed by mathematical psychologists to establish the structure of preferences across multi-attribute alternatives. It is a type of stated-preference method that has captured the attention of economists for purposes of analyzing preferences toward environmental goods and services. This paper outlines the applicability of CJ to environmental valuation, illustrates applications and valuation issues in the literature, and presents an application of CJ to valuing a Pennsylvania watershed quality improvement.

Ecosystem services from tropical forestry projects – The choice of international market actors

“…Instead, when it comes to use participatory methods aimed at reflecting preferences of stakeholders in the field of ecosystem services, research often focuses on other stated preference techniques. Examples include the application of choice experiments in Costa Rica's ecotourism sector (Hearne and Salinas, 2002), the use of conjoint analysis to valuing watershed quality improvement in Pennsylvania (Farber and Griner, 2000) or a comparison of contingent valuation and conjoint analysis in ecosystem management of private forest land in Massachusetts (Stevens et al, 2000). All these methods have in common that they usually apply the willingness-to-pay approach in order to reflect preferences, i.e.…”

Value and valuation of forest ecosystem services

“…In spite of its inherent difficulty in administering, contingent valuation and conjoint analysis (or choice modelling method) is an appropriate method for estimating the gross value of all the ecosystem services together because it allows the estimation of complex multi-attribute values to people and permit such estimation in cases of high correlation among use values (Farber and Griner 2000). Stated preference techniques are the only ones available for estimating preservation values.…”

The value of Scotland's ecosystem services and natural capital

“…This was achieved using published studies largely based upon valuation techniques that measured the 'willingness to pay' of individuals for ecosystem services. Since its publication, a number of further studies have sought to apply this global methodology to a regional and country level (for example Loomis et al, 2000;Farber and Griner, 2000;Stevens et al, 2000). We argue that the value derived in the Scotland study provides a useful context for understanding the scale and importance of Scotland's natural habitats in comparison with economic sectors, as it reinforces the message that the environment is not only important but central to human welfare.…”